One of the glaring consequences of the novel coronavirus pandemic is that the crisis has only accelerated the growing wealth gap in the U.S. Further, this outbreak has disproportionately impacted communities of color and lower-income households, making it all the more difficult to succeed. But through an intuitive, automated investing platform called Beanstox, anyone with a smartphone can save for retirement. It’s this fundamentally crucial narrative that is the catalyst to invest in Beanstox stock.
Cofounded by “Shark Tank” investor Kevin O’Leary, Beanstox essentially democratizes the equity market. Unlike traditional brokerages and financial advisory firms, the Beanstox platform facilitates fractional ownership, hence the term “beans.” Through gradual savings combined with the incredible power of compounding returns, anyone can build a sizable retirement portfolio.
From the description above, this equity crowdfunding opportunity sounds awfully like Robinhood. Like Beanstox, Robinhood allows regular people to invest in high-denomination shares like Amazon (NASDAQ:AMZN) or Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), thus encouraging anyone, irrespective of income, to participate in the present technology bull market.
However, the main difference is in the end game. With Beanstox, management is focused on retirement planning rather than trading. Thus, one of the distinguishing factors for the Beanstox app is the automated recurring contributions feature. This takes away the discipline needed to save for the future; basically, the app will hit your retirement target, whether you like it or not.
According to the National Institute on Retirement Security, nearly 40 million households have no retirement savings. This private investing opportunity could help positively shift our culture; hence, why so many are interested to invest in Beanstox stock.
Invest in Beanstox Stock to Help America’s Piggy Bank
As new Covid-19 cases decline, Americans are looking forward to the day when this pandemic finally fades. But while the acute health threat may be gone at some point, the financial consequences will linger.
What really breaks my heart about this crisis is that it has further exacerbated the gap between the “haves” and “have-nots.” According to the Board of Governors of the Federal Reserve System, the richest 1% in this country own more than 31% share of total net wealth.
With little evidence that this dynamic will be cured, we may end up with two classes in America: the ultra-affluent and everybody else.
Making matters worse, big corporations are buying up homes during this crisis, according to the New York Post. The intent is clear – turn America into a fiefdom, denying individual households an opportunity to access wealth building platforms.
Fortunately, with technologies that enable fractional ownership of securities, anyone can access the capital markets for growth. Further, the major indices have an upward slant resulting in average annual returns of 8%. Through disciplined (as in automated) contributions, individuals can bank on this consistent return to build substantial wealth.
Essentially, the catalyst to invest in Beanstox stock is the solution to the last mile problem. Most traditional institutions are too bloated to deal with small, individual transactions. But with Beanstox’s disruptive technology, the company levels the playing field. Now, it doesn’t matter how big your wallet is, but rather, whether you’re willing to start the retirement journey.
Finally, according to Beanstox’s equity crowdfunding profile on StartEngine, “Over 100 million Americans need help with saving and investing, and market studies indicate that the worldwide robo-advisory market is expected to grow to $16 trillion of assets under management by 2025.”
Risks to Consider
All private investing offers carry risk and Beanstox is no different. Indeed, before you invest in Beanstox stock, you should take a breather. If you’re going to dive in, you want to do so because the opportunity makes sense to you, not because Kevin O’Leary is behind this equity crowdfunding venture.
As with anything else, due diligence is critical. However, the private investing realm makes it more crucial due to the lack of information relative to publicly traded stocks. Further, shares acquired through equity crowdfunding are not nearly as liquid as “regular” stocks, if at all.
Therefore, if you do invest in Beanstox stock, assume that you’re in it for the long run.
Specifically for the underlying company, one of the biggest risks I see is that the stock market has been steadily declining in average returns. Back in the late 1920s and 1950s, investors saw average annual returns of more than 18%.
But in the 1980s, 1990s and last decade, the average slipped to 13.5%. I’m not suggesting that stocks are not an effective platform for wealth growth – I’m contributor for InvestorPlace.com, after all! Instead, the set-it-and-forget-it advice may not be relevant in the future.
If not, that could jeopardize the narrative to invest in Beanstox stock and give rival Robinhood a leg up.
A Necessary Tool to Help Americans Invest
While this equity crowdfunding has some headwinds, ultimately, we need a solution to our country’s retirement problem. Thanks to the combination of technology and “old school” fundamentals, it’s never been easier to help individuals succeed financially.
If you want to invest in Beanstox stock, head on over to StartEngine.com. Shares are selling for 75 cents a pop and feature a $150 minimum investment.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.