Investing is no longer reserved for Wall Street insiders. With easy-to-use apps, low minimums, and flexible products, everyday Americans have more ways than ever to put their money to work.
All investments carry some risk, so it is important to choose products that match your time horizon and comfort level.
1. Buy stocks through a brokerage
To own a slice of a company, you need a brokerage account. Online brokers like Fidelity, Schwab, Robinhood, and E*TRADE make it possible to open an account in minutes. Once funded, you can research companies, enter ticker symbols, and place trades for individual shares.
If you are concerned about making the right stock choices, AdvisorMatch's free service connects you with experienced financial professionals who can guide you through the process. In less than 2 minutes, you will answer a few questions and get matched with an advisor who can help you build a portfolio.
2. Grow money with funds and ETFs
If picking individual stocks feels overwhelming, mutual funds, index funds, and exchange-traded funds (ETFs) are an easier way to buy a ready-made basket of investments. You can open a brokerage account, search for the fund by name or ticker, and start investing with as little as one share or even fractional shares.
Gold has historically been a reliable investment for protecting your savings. Open a gold IRA to help shield your savings from inflation, market swings, and economic uncertainty. Offers and terms may change, so always verify details.
3. Earn steady returns with bonds
Bonds let you lend money to governments or companies in exchange for interest. You can buy Treasury bonds directly at TreasuryDirect.gov or invest in bond ETFs and mutual funds through a brokerage.
They are less volatile than stocks, but typically pay lower returns. Many retirees use bonds to generate predictable income while limiting exposure to stock market swings.
If you are unsure how bonds and other fixed-income investments fit your retirement plan, SmartAsset offers a free service that matches you to a vetted, fiduciary advisor in less than 5 minutes.
4. Diversify with real estate and alternatives
You do not need to buy a building to invest in property. Real estate investment trusts (REITs) and online platforms let you buy into commercial or residential projects with small amounts. Some services even open doors to alternative assets like venture capital or wine.
One modern way to diversify is with real estate and venture capital. Companies like Fundrise offer investments as small as $10.
Note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on moneytalksnews.com. All opinions are our own.
5. Use tax-advantaged accounts
Certain accounts let you invest while also saving on taxes. Retirement accounts like 401(k)s and IRAs are common, but if you have a high-deductible health plan, you can also invest through a Health Savings Account (HSA).
Many HSAs allow you to buy mutual funds and ETFs with tax advantages. Keep in mind that IRAs and 401(k)s may have withdrawal penalties if accessed early, and Required Minimum Distributions (RMDs) apply once you reach retirement age.
If you have a high-deductible health plan, you should have a Health Savings Account. Check out Lively HSAs.
6. Get help if you are unsure
Not everyone wants to manage investments themselves. Professional advisors can help you set goals, balance risk, and plan for retirement. Many services now make it easy to connect with fiduciary advisors online.
If you have over $150,000 in savings, consider talking to a professional financial advisor. Zoe Financial is a free service that will match you with a pro in your area.
Growing wiser with your wealth
Investing is not about chasing hot tips or timing the market perfectly. The key is to get started, stay consistent, and spread your money across different assets. With the right tools and a clear plan, you can build wealth steadily over time.
Investment strategies can change as you age. Free resources from groups like AARP, local libraries, and community centers can help you keep learning, test calculators, and stay confident about your financial future.
Before investing, it helps to build a cash cushion. Earn as much as possible on your emergency savings. For example, SoFi Checking is offering 4.50% APY with $300 bonus with direct deposit. (May change without notice.) Always confirm current rates before signing up.
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