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Dave Ramsey says: Investing apps leave all decisions up to amateurs

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Dear Dave,

What do you think about online investing apps, and the way they allow you to jump in and out of stocks for really low fees?

— Anonymous

Dear Anonymous,

I don’t think about them, and I don’t use them. And I don’t play single stocks — period.

There’s a ton of research out there showing that people who play individual stocks on their own — or with their broker, or with a golfing buddy — see a rate of return of about 7 percent on average.

You can make anywhere from 10 to 14 percent, on average, with good growth stock mutual funds.

I could probably play single stocks more intelligently than most people, but why?

If the average is noticeably less than I’m seeing with my mutual funds, why bother going there?

Plus, with a mutual fund portfolio, you’ve got someone who does this kind of thing for a living managing and researching your investments for you in your best interest.

I don’t have an app on my phone that lets me trade stocks, nor do I plan on getting one.

There’s nothing wrong with apps, in general, but I’ll never recommend jumping in and out of single stocks as a method of investing.

— Dave

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