In this article, we share with you the review with investment app Peaks. Peaks is an app you may be familiar with under the guise of “investing with your change. For a while, Peaks was an app used mostly by novice investors, as it was a nice and approachable way to get introduced to investing. Meanwhile, Peaks has matured a lot, and is also positioning itself as an app where you can build serious wealth. Moreover, they have introduced attractive savings rates through an interest rate account and you can open a special retirement account. Things have changed, let’s list what you can do with investment app Peaks and what type of investor this app can be a good choice for.
Investment app Peaks
Peaks makes investing easy. Through the app, you can only invest in index funds. You decide which portfolio and deposit suits you. Should your situation change, you can change your settings yourself at any time. Peaks recently gave its app a new look, making it clear that it is not just about investing with your change (which they were known for) but that Peaks is also the place to get serious about building wealth.
At Peaks, you can start with very small amounts by investing with your change, but you can also – recommended – have a higher amount automatically transferred each month. Then that the system does all the work and spreads your money among different funds according to the risk you specify.
What is Peaks?
Peaks is an investment app that you link to your checking account and then you can invest very easily and in a low-threshold manner, including with your change. Peaks is also suitable for periodically investing larger amounts to build wealth. At Peaks, you invest in global index trackers in accordance with your chosen portfolio .
With your change?
Yes, you read that right! Suppose you are shopping for €9.40. Then Peaks rounds up your amount, and you automatically invest this amount. So in this case, €0.60. With every expense you make, Peaks rounds up the amount, and in this way you unknowingly save some euros.
The benefits of investment app Peaks
Investing at Peaks is easy. You open an account, choose your chosen portfolio and set up a daily, weekly or monthly direct debit, and your money does the rest! The benefits of investing with Peaks are:
- Automatically deposit money yourself on a daily, weekly or monthly basis. We make it possible to invest with any amount of money – even your change.
- You pay a fixed monthly fee plus low variable fees starting at 0.30% on the total of your investments. You also pay spread and fund fees. They don’t charge transaction fees.
- Index investing across the global economy. This lowers your risk because you spread your investments well.
Options in the app
There are all options in the app, such as:
– The doubler: double the change, so not 60 cents but €1.20.
– 1 euro a day: set aside 1 euro every day. So automatically set aside €7 every week.
– Deposit a fixed monthly amount of your choice. From €50 to €500 – how much equity you accumulate is up to you.
You can set these options separately, but they also coexist, so:
AND investing with your change, AND depositing a euro a day, AND depositing a fixed amount every month.
You can change and customize these options 24/7 in the app.
You are 100% in control!
Why invest?
Investing is smart because its purpose is to make your money become more money, to grow your wealth. This is a tactic that is smart to employ when pursuing financial independence. Because turning your money into more money: yes! Read more in this article about why investing is crucial in the journey to financial independence and wealth building.
Why Peaks?
Easy investing and wealth building, with an easy app where you can always access your money. You are flexible in continuously adjusting your deposit and portfolio. You also invest in index funds through Peaks, which invests in the entire world economy. By doing so, you minimize risk and steadily build wealth.
How does Peaks work?
Easy peasy:
- Install the app.
- Sign up.
- Link the app to your bank account. Can be attached to virtually any Dutch bank account.
- Decide what investment portfolio you want (cautious, balanced, entrepreneurial, adventurous) and therefore how much risk you want to take.
- Set up a direct debit and decide whether you want to invest daily, weekly or monthly. You can also set the app to invest your change.
The 4 portfolios of Peaks.
With Peaks, you can easily build wealth by choosing one of four portfolios. The 4 portfolios all have a different risk profile, meaning a different ratio of stocks versus bonds. Then, through each portfolio, you invest in sustainable index funds that spread your money across various stocks and bonds worldwide. So you are not investing in one company, but spreading your opportunities. This lowers your risk and allows you to get a higher return in the long run than with saving.
Risk profile ‘cautious’
With this profile, you invest 30% in stocks and 70% in bonds. The expected gross return per year on your assets is 2.2%.
Risk profile ‘balanced’
With this profile, you invest 50% in stocks and 50% in bonds. The expected gross return per year on your assets is 3.2%.
Risk profile ‘entrepreneurial’
With this profile, you invest 70% in stocks and 30% in bonds. The expected gross return per year on your assets is 4.2%.
Risk profile ‘adventurous’
With this profile, you invest 90% in stocks and 10% in bonds. The expected gross return per year on your assets is 5.3%.
Which portfolio do you choose?
Which portfolio you choose has everything to do with your risk appetite and your investment goals. The Starting to Invest e-course(part of the Elfin membership) gives you tools to create your own investment strategy and determine how much risk you are willing to take.
The cost of investment app Peaks
The cost at Peaks depends on which package you choose.
- Package start costs €0.99 per month + 0.5% per year. Note that you pay this 0.5% on the average value of your investments each year, paid in installments – that is, 1⁄12 each month.
- Package complete costs €1.99 per month + 0.5% per year. Note that you pay this 0.5% on the average value of your investments each year, paid in installments – that is, 1⁄12 each month.
- Package premium costs €4.99 per month. With this package, however, you pay not 0.5% but 0.3% per year on the average value of your investments each year.
Conclusion
Investment app Peaks may be a pleasant party to invest and build wealth easily, without too much worry. You set up your portfolio once, and then you have nothing to worry about. An easy way of passive investing and putting your money to work before you. But beware! Choose an investment party do fits your financial situation and your needs.
