Gone were the days when investing has been perceived as money-making only for the rich. But now, investing is being made attractive even for beginners or those who have a small amount of money to set aside. There are so many options offered in the market today. Indeed, investing is a smart way to make your money grow.
Investing is important. Primarily, it gives you a cushion against inflation. Also, it helps to make your money grow, thanks to the mechanics of compound earnings. Additional earnings are generated because any amount earned is reinvested. The important thing is to start investing early. The more you reap the benefits of compounding.
Now, read on for a few types of investments that tailor-fit investing for beginners.
First, an employer retirement plan could be a wise choice. This is especially when your company puts in a portion of what you contribute. The employer match is your benefit. Definitely, this is a guaranteed return on your investment. In this type, there is no minimum amount to contribute. There is also the convenience of auto-debit from your paycheck.
Secondly, you can avail the services of a Robo-advisor. Open an account with them and they will handle your investments using computer algorithms. They charge lower fees compared to finance managers. And they usually require no minimum amount, too.
Beginner investors are likely to use Robo-advisor. Robo-advisor customizes an investment portfolio to a certain degree that would cater to beginners. The program helps them to start their investment and speed up the process.
Thirdly, another type would be target-date mutual funds. These are investments with an estimated retirement year. Finance managers handle these funds and invest in a mix-type portfolio. It could be a combination of stock equities and bonds. This is a low-risk type of investment. And lastly, professional fund managers handle your investment.
Fourthly, there are investment apps in the market that target beginner investors. One is the Acorns app. It rounds up your debit or credit card purchases and invests the change. There is no minimum amount to sign in for the account and it automatically manages your investment. Minimal service charges also apply.
Another app is the Stash. This app teaches beginners how to build their portfolios out of stocks and traded funds. Similarly, its charges are at a minimum for beginners.
Investing is for everyone. Many companies had made their services of investment options available even for beginners with a little amount of money to work on.
With so many investment services available in the market today, it is not an excuse that you cannot avail of any of them. Moreso, companies make their service packages attractive in terms of minimal fees and no minimum amount to invest. Young professionals are the target in this type of program.
“From little acorns grow great oaks.”
As the saying goes, from the little amount that you jumpstart to save for today, you can reach your formidable dreams in the future. Thus, make it a habit to set aside a certain amount regularly out of your paycheck. Saving is investing. Make investing a part of your journey to achieve your financial goals.