You may have some extra money put away that you would like to invest with. Although you have the funds, you may not have a clue of where you should invest your bonus cash. If you tried to google the information, you could easily discover thousands of stocks, mutual funds, bonds, ETFs, asset classes, and brokerages. This might cause you to put investing on hold and focus on doing something recreational. Instead of giving up, here are some great options to choose from, regardless of what level you’re at in your investing.
You can purchase one share of an Exchange-Traded Fund (ETF) on the stock market, along with a beginner’s book in investing. Your next question may be, “which ETF should I purchase and where?”
You can easily open an account with a brokerage online, like E*TRADE. Some of the websites offer a commission-free ETF program. Afterwards, you can purchase one share of Vanguard Total World Stock ETF (VT). Let’s say it is trading for approximately $59 per share. With your $59 purchase, you own a percentage of more than 5,000 stocks in approximately 50 different countries.
As you keep track of your stock, you can read up on your investment book to obtain some more key advice on investing.
When it comes to investing $10,000 or more, one of your best options is a Vanguard target-date fund. Another option you can go with is Wealthfront, which is an automated investment management site. With Wealthfront, there is a minimum requirement of $5,000 and you don’t have to pay any additional fees for the first $10,000 that you invest.
For those looking for less risk, you could always invest in your 401K. If you currently have a 401K with your employer, it is much easier than attempting to open an account and managing the investment on your own. Some employers match the amount you invest, which means you would instantly double your investment and make more money.