Robo-Advisors for Investment: Start Small and Don’t Wait for What’s Left from Your Salary

Investment is no longer reserved for the wealthy or for those who check the stock market every morning. Today, thanks to robo-advisors, it is possible to invest without any prior knowledge. It is enough to honestly answer a few questions, and the application will recommend a portfolio tailored to your situation. In the latest episode of the podcast ‘Špica s Macanom’, hosted by PR expert Krešimir Macan, mathematics professor and financial vlogger Toni Milun, and Marko Bogdan, financial expert and sales manager at Genius, the first Croatian application for automatic investment in mutual funds, discuss the economic habits of citizens, myths about investing, and simple ways to take the first step towards financial responsibility.

More and more young people are entering the world of investing, but often in the wrong way, emphasizes Milun, the most well-known mathematics professor. Instead of funds and ETFs, they exclusively choose cryptocurrencies, driven by the desire for quick profits.

– Today, even 10 percent annually is not enough for them. They want to double their investment overnight, which is mathematically and practically unsustainable – warns Milun.

Bogdan states that people should not be convinced to invest.

– They should be encouraged to start saving regularly. Investing is just a tool, not a goal in itself. The most important thing in finance is not the amount, but the habit – he stated.

The level of financial literacy is very low; in the European Union, four out of five respondents are financially illiterate. Financially responsible people should save, emphasizes Bogdan.

– You should set aside 10, 20, or 50 euros monthly. Once you learn that, we can talk about ways to use it more wisely so that it is not just saving but investing – he explained.

Milun agrees, emphasizing that you should first pay your future self.

– Your pension will be miserable and poor. You won’t be able to live off it. Don’t wait for what’s left because nothing will ever be left from your salary. First, set aside a smaller amount – the future you comes first, then bills and food come second – says Milun.

For those who know little or nothing about investing, Milun recommends robo-advisors like Genius, Finax, and Revolut. These are applications that suggest a portfolio tailored to your income, goals, and risk level through a few questions.

– You don’t need to know anything about the markets – the system is simple, transparent, and you can start right away, with a small amount – explains Bogdan.

Expected returns, Bogdan explains, depend on the willingness to take risks.

– All you need is a mobile phone, download the app, complete the questionnaire, and based on those criteria, how much risk you are willing to take, we will assemble a portfolio. The average client’s portfolio currently has about 7,500 individual investments. No one depends on the fate of a single company in the portfolio – he concludes.