Index Investing for Beginners
Looking to get started with investing, but not exactly sure how to begin? Here’s a really helpful article that outlines the specific steps you can take, as a beginner investor.
It was written by my friend, Kevin, who blogs at Just Start Investing. (<– And if that isn’t the best suggestion ever, I don’t know what is!) By the way, Kevin’s blog was recently nominated for a Plutus Award in the category of Best Investing Blog. Be sure to check it out, because he has some amazing content on there!
And with that said, here is his comprehensive guide on how to get started investing for beginners.
Everyone should be investing in some capacity if they can. Whether it’s through a 401(k), a Roth IRA, or just a personal brokerage account, investing is one of the best things you can do for yourself! And if all those fancy numbers and abbreviations (looking at you, Roth IRA) mean nothing to you, don’t worry, we’re breaking down how anyone can get started in this index investing for beginners guide.
Before we get started, imagine this for a second… Let’s say when you were born you put $100 in your piggy bank. And every year for your birthday, you were fortunate enough to add $100 to that piggy bank (or your parents added it for you). When you turned 18 and went to withdraw that money, instead of it being $1,800, it was $3,700. Over double the amount you expected!
Magic! Right? Nope, that is the power of investing in the stock market which has historically provided 7% returns every year.
So now you’re 18, or 25, or 35, or 55, or however old you are today, and you want to set yourself up for a better future. Good! It’s never too late to start, and starting now is better than starting tomorrow.
So let’s start at the beginning.