One of the biggest myths about investing we’re here to bust is that it is only for the rich. That may have been true a decade ago, but today that wall has been taken down by companies who have made it their mission to help everyone else invest their money.
But how do you start out as a beginner? It’s not as hard as you think. In fact, there are many opportunities out there for beginner investors. Read on to learn about a few investments for beginners so you, too, can grow your wealth.
- A 401-K or IRA
Starting with a retirement plan is a great way for beginner investors to get started. In fact, this is the first place you might consider putting your money, especially if your company contributes a portion. And you don’t need a lot of money to start off. Just 1% per paycheck is enough to get the investment ball rolling. As for an IRA, you can contribute up to $6,000 a year.
- Index Funds
Think mutual funds on autopilot – that’s index funds. They work by tracking a market index rather than having a professional portfolio manager. A market index is made up of selected investments that take a passive approach to investment. Subsequently, they have lower expense ratios (meaning no fee is charged) than what mutual funds offer. However, you’re still buying into a sizeable chunk of the investing market. Some index funds have a minimum investment requirement, but it is generally as low as $100.
- Investment Apps
A popular and easy way to invest for the future is through an investment app like Acorns. The way it works is you sign up for an automatic withdrawal of as little as $5 a week. Also, you can opt for debit card round-ups to be deposited into your investment account when they reach a certain amount. Acorns charges $1 a month for their service. Another app is Stash, which helps beginner investors like you build a portfolio using individual stocks and ETFs. There is a $5 minimum account balance.
Investing is no longer just for the rich. It’s something anyone can do with just a little pocket change to get started. Whether you opt for index funds, investment apps, or an IRA, you will be sure to watch your money grow.