Did you know that the question “How can I start investing?” is one of the most commonly Googled search terms?
It’s one of those questions that can be soooo simple – but also feel overwhelming and complicated. I often tell our clients, it helps to have a “filter” for this sort of thing (like a financial planner!) so you don’t waste your time on something that ultimately won’t work for your situation.
But I surveyed the crew – the financial planners here at Creative Money – and this is what they said:
“Getting started with investing is easier than it seems. A great way to get started is to automate your investments with as little as $10 a month in a brokerage account. First, figure out your ‘why’ and set your goals. Begin with simple options, like low-cost index funds. By automating regular contributions, your money will grow over time. Keep those goals in mind, stay consistent, and keep learning along the way!”
“Keep it simple. Open an individual brokerage account aka an investment portfolio through a reputable company. Fidelity, Vanguard, Schwab are all popular for beginner investors. Start with a small amount of money that you are comfortable investing. And don’t be overzealous with buying a bunch of stocks that you hear about on the news! The best course of action is to purchase a mutual fund as you essentially buy a bundle of stocks at one time.”
“First, figure out how much you earn and spend each month. That will tell you how much money you have left over every month. Then zoom out and look at annual expenses like travel, house projects, etc. that you’d like to budget for too. Once you have a clear picture of your annual income and expenses, then you can determine how much you have to invest. Then talk to your friendly financial planner over at Creative Money to learn more about which investments are right for you :)”
“Start with a disciplined step, like diverting a relatively small amount of your monthly income into a high yield savings account. Once you reach a comfortable cash reserve balance, then start shifting future savings into a brokerage account. It’s easy to find a brokerage firm that offers $0 commission trades and no account minimums .You only need one or two funds to get started, so just keep it simple and don’t worry about trying to time the market. Just let it grow!”
“It’s often easier than you’d think! The first step would be to decide if you want to save into a retirement type account, or an individual brokerage account. A retirement account can have great tax advantages, but is often inaccessible prior to retirement without penalty. An individual brokerage account can be opened at any time without limits on how much you can save into the account. Investing in broad index funds is a great bet – they are simple and inexpensive and well diversified.”
There you have it. Is getting started on a deep dive into investing a priority this year? Then I recommend you chat with us sooner than later… you can find out more about that here.
