Tips To Living A Simple Life!
Investing Money For Beginners
If you are new to investing you are probably very confused with all the options out there. Even if you have been in the stock market for years the options can be overwhelming. What should you invest in?

Investing money for beginners.

When living a simple life you want to keep your investments simple. If you are new to investing you are probably very confused with all the options out there. Even if you have been in the stock market for years the options can be overwhelming. What should you invest in? How much should you invest? Do you have time to watch it? How much will I make? Should I buy stocks, ETF’s, Mutual funds, options? How much research do I need to do? What is the best way to start investing? How do I begin investing? How much money do I need? First you should have a basic financial strategy.


  1. These are just some of the questions you might be asking yourself. I am big on keeping things simple, so that’s where I am going to advise you to start. I have been trading stocks, ETF’s, options for a long time. I have made a lot of newbie leaning mistakes which you can find on this website or in my book. Now a days I am so busy with life I don’t have the time to trade (even though it can be simple) to try and beat the market. Let's look at how simple and easy investing can be. 
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My favorite way to invest is Mutual Funds. I opened both of my children custodial accounts and put money in their positions every chance I get. Personally, that is all I own, I do not own any stocks or ETFs at this moment. Why do I prefer mutual funds over anything else?  

  1. 1. They are actively traded by professionals who try and beat the market. Personally, that is what I want to do, beat the market. I am not a professional, I do not have the time to watch the market and try and time the market. I do not have the time to do the research to make sure my money is safe.  

  1. 2. I like the amount of diversity funds can provide. They all range differently, but you can find a fund or personalize one to fit exactly how you want to spend your money. This will be found in the Fund report. 

  1. 3. Once you have made the amount required for the initial investment you can usually put in as low as $1 without any transaction fees. That is great for someone who can only afford to add $10 a week. Other stocks and ETF’s may have transaction fees, and regardless of you must pay the full price of a share which maybe higher than you can afford.

Mutual Funds do have a fee associated with them usually around .5-1%. It is easy on most platforms to find an AllStar Mutual fund that you would want to put your money into with as little as ten minutes of research. I usually also look for Allstar funds because they are the ones performing the best. I use E*Trade and finding these are very simple. Under the section trading or you can find them under markets you will see mutual funds. Find the Allstar selection and find one you like to invest in. 

A great tool right now is E*TRADE's prebuilt portfolio. I recommend selecting your risk level, they offer Aggressive, Moderate, Income, and Conservative. Personally, I like the aggressive risk level as I am still somewhat young and I am looking to be as aggressive as possible, but that does come with more risk. I prefer the mutual fund selection and I like the ones they have chosen. Once that is done go to their automatic investing option. I recommend keeping at least 10% of the money you earn and putting it to work for you. You can set up automatic investing with E*TRADE and its really that simple.  


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Let's go over the steps. This is the simplest way to invest money. 

 


  1. 1. Open a Brokerage account. I recommend E*TRADE, mainly because that’s what I am familiar with and love the platform. I have tried others like interactive brokers, and I am not a fan. You can do this online it might take a total of tweeny minutes. Connect the account to a bank account. Fund the account and once the funds clear you are ready to go. 


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  1. 2. Next you need to find a portfolio for you. You can use E*TRADE's prebuilt portfolio tool or build one for yourself. My favorite 3 funds are PRDGX, PRHSX, PRGTX. All 3 funds are from T. Rowe Price. PRDGX gives you exposure to dividend growth, PRHSX gives you exposure to healthcare growth, and PRGTX gives you exposure to technology growth. I find this balance to work well for me.  E*TRADE also has a Thematic investing tool that allows you to choose sectors like clean energy and other areas you maybe interested in. The prebuilt portfolios are definitely the simplest to start with.


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  1. 3. Purchase your initial positions in the mutual funds, ETF’s, or stocks you want in your portfolio. This is for a long-term investment. If you are looking for stocks remember it takes a lot of research to make sure this is something you want to hold, it is also a lot riskier to own one or two stocks compare to one or two mutual funds or ETF’s. 



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  1. 4. Automatic Investing. On the E*TRADE platform under the trading section you will see an automatic investing option. This is the easiest and best way to keep your money flowing into your investment. Set this up so each of your positions have money flowing into them. You can schedule it in multiple different ways. Once you set this up you can sit back and be comfortable with your money being invested in a portfolio of your choice.  



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5. Buy a home. Now you have a minimum of 10% of your income being invested, buy a home if you have not already. It is more beneficial to own a home instead of paying a property owner to stay in their property. Pay this off as soon as possible so you can have more of your income free on your budget to invest in other areas and retire without a housing payment.



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