How to Start Investing
If you’re interested in beginning to invest but are nervous, or simply don’t have a lot of money to invest, why not start slow?
There are a multitude of ways to get started without risking a lot of money in the process. If you have $1,000 and are ready to start investing, here are some ways to do so:
- Open an IRA. While investing in an IRA is not the same as buying stocks outright, you are still investing in the market and you will still increase (or decrease) your IRA balance based on the investment choices you make. As an added benefit, you’ll also be increasing your retirement fund.
- Start using an investment app. There are many on the market today, and all of them can help you begin to invest in stocks, with the apps purchasing portions of stocks that provide you a small return on your initial investment, which can be as low as $5.00. Using one of these investment apps will also provide you with a window to understanding stock performance, enabling you to see how stocks perform, while perhaps giving you the confidence to make a larger investment.
- Consider U.S. Treasure Securities. If you really want to start investing conservatively, you may want to invest U.S. government securities. While the return won’t be enormous, the investment is secure and you can start with as little as $100.00.
- Star using an online discount brokerage firm. You’ll be able to trade at a low cost, and invest in a few high-performing stocks in order to get your feet wet. While some brokerage accounts have a high minimum balance requirement, others have no minimum balance at all.
- Invest in a small business. If you have a latent entrepreneurial spirit, why not invest some or all of your $1,000 in a small business idea. If this idea doesn’t appeal to you, consider investing in someone else’s small business. If you do decide to invest in someone else’s business be sure to complete your due diligence before parting with your money.
Pay down your current debt. While this is probably the least exciting option, it can pay the biggest dividend of all.
While $1,000 may not seem like much, starting your investment journey with minimal risk will give you the knowledge and the confidence to tackle more high-risk investments down the road.
*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2014-2019 Advisor Websites.