It has never been easier for the average person to invest their money in meaningful ways. However, unless you already know what you’re going to do with your funds, it can be hard to know where to begin your investment career. Fortunately, with a little guidance and patience, you can begin setting money aside and growing it into a substantial retirement fund.
What Can I Invest In?
There are plenty of options open to the modern investor, each with their own barriers to entry. You can start investing even if you only have access to a relatively small startup fund. Of course, the more money you have available to you, the more options will be open. That doesn’t mean that you need a substantial amount of startup capital though; it all depends on what your long-term goals are.
What to Know First
There is always a risk to investing. Even the safest investment options will ultimately depend on the stability of an external entity – a bank, an investment fund, even a nation-state – and it is always possible for things to go wrong. Some types of investing are inherently more risky than others. For example, private placement investments are particularly high-risk, high-reward investments. They can go very wrong though, just cask GPB Capital investors who are now facing substantial losses.
401(k)
A 401(k) is a type of retirement plan. Similar plans exist and they all work in the same way. These are perhaps the simplest and most effective way of investing in your future. With a retirement plan, your employer will often match any contributions you make – meaning you can get free money on top of your investment.
You can begin saving this way by depositing as little as 1% of every paycheck you receive. In fact, there is generally no minimum investment level with a 401(k) or similar retirement plan. The amount that your employer will match – what percentage of the money you invest they will invest – will vary from employer to employer, so make sure you check the terms of your plan.
Robo-Investor
A robo-investor is a bot that automatically conducts trades for the user. There is very little knowledge or capital required to start using robo-investors, although it is a good idea to know at least a little about stocks and shares before you begin trading. There are even online platforms that combine a trading platform with a social media platform, enabling you to follow and mimic the trades of other investors.
Currency Trading
Currency trading works a little differently to stocks and shares. Stocks and shares aren’t often traded for one another, they are usually bought and sold. If an investor wants to move their investment from one company to another, they will sell their existing stake and buy a new one.
Things are different when trading currencies – any currency can be traded for any other currency. All currencies have values relative to one another and affected by a number of events.
If you want to start investing, there is no shortage of options open to you. Check your smartphone’s app store to see what app-based options are available. Many beginners find these interfaces easier to navigate.
Disclaimer: This content does not necessarily represent the views of IWB.