Sure you can buy one of those fancy router sign kits. But if you like to do it freehand all you need is a good router and a sharp V-grooved bit. In my video, I used a fixed base router. You may like to use a plunge router. If you don’t know the differences, a plunge router you would place the router right over your work set its cutting depth and push down and start routing. Since I’m an old-school router mad man I like the fixed base.
To me, they are smaller and less bulky to use. But hey that’s just me. Renting one from a tool rental may be a better choice before you buy one.
Now there are many different router bits out there. Although you will find bits mark “plunge” does not mean you need to use them in a plunge router, it just simply means, by the way, you will use them. Any bit that you will use for letter cutting will not have a bearing installed on it. Although if you wanted to router the outside edges of your sign you would then use a router shaper bit with a bearing to shape the edges.