Investing 101
Explore the basics of investing with our easy guide. Learn and discover key strategies to confidently start your investment journey and grow your wealth.
Building a Portfolio
Diversification
Investment Platforms
Benefits
Stocks
Bonds
Index Funds & ETFs
Roth IRAs
Stocks
Explore Stocks
When you buy a stock, you’re purchasing a small piece of a company. As the company grows, the value of your stock can increase, helping you grow your wealth. However, stocks can also go down in value, so it's important to be prepared for some ups and downs.
Why Stocks?
Stocks offer the potential for higher returns over time, making them a key part of many investment strategies. With a long-term mindset, investing in stocks can be a great way to build wealth.
Where to Start - Robinhood - Invest in Stocks
Download the Robinhood app and start investing in individual stocks with no commission fees. It’s user-friendly and great for beginners.
Bonds
Discover Bonds
Bonds are like a loan you give to a company or the government, and in return, they pay you back with interest. Bonds are typically more stable than stocks, offering a more secure way to earn returns.
Why Bonds?
Bonds provide steady, reliable income with less risk than stocks. They can be a great addition to your investment strategy, especially if you want a balance of safety and growth.
Where to Start - TreasuryDirect - Buy U.S. Government Bonds
Open an account on TreasuryDirect to easily purchase U.S. government bonds and start building a more stable investment portfolio.
Index Funds & ETFs
What are index funds and ETFs?
Index funds and ETFs (Exchange-Traded Funds) make investing simple. They automatically spread your money across multiple companies or bonds, reducing your risk and making it easy to get started.
Why invest in them?
Both index funds and ETFs are low-cost, hassle-free ways to diversify your investments and grow your wealth. They’re ideal for beginner investors who want to build a balanced portfolio without the complexity of picking individual stocks.
Where to Start - Vanguard - Open an Account for Index Funds & ETFs
Vanguard offers low-cost index funds and ETFs. Open an account and start investing with as little as $1,000.
Roth IRAs
Start with a Roth IRA
A Roth IRA is a special type of retirement account where your investments grow tax-free. You contribute after-tax money now, and in retirement, you won’t have to pay taxes on your withdrawals, making it a smart long-term choice.
Why a Roth IRA?
Roth IRAs offer major tax benefits, especially for young investors. Starting early allows your money to grow tax-free for decades, helping you reach your financial goals faster.
Where to Start - Fidelity - Open a Roth IRA
Open a Roth IRA with Fidelity and start contributing to your retirement with tax-free growth. The platform provides easy-to-follow steps and educational resources.
Building a Portfolio
Build Your Portfolio with Confidence
A portfolio is simply a collection of all your investments. To start, mix different types of investments (like stocks, bonds, and ETFs) to create a strategy that matches your goals.
Why it Matters
A well-built portfolio helps you grow your wealth while managing risk. By balancing riskier assets with safer ones, you can invest confidently over the long term.
Where to Start - Betterment - Automated Portfolio Building
Betterment uses robo-advisors to help you create a personalized, diversified portfolio. Sign up and start building a balanced investment strategy.
Diversification
Why diversify your investments?
Diversification means spreading your money across different types of investments. This helps reduce risk because if one investment performs poorly, others might do better.
How it helps you
Diversifying protects your money and boosts your chances of steady growth. Think of it as not putting all your eggs in one basket!
Where to Start - Acorns - Automated Diversification
Acorns automatically invests your spare change into a diversified portfolio. It’s a simple way to start investing with little effort and ensure diversification.
Investment Platforms
Where to Invest
Investment platforms are apps or websites that let you buy stocks, bonds, ETFs, and more. Popular platforms like Robinhood, E*TRADE, and Fidelity make it easy to get started, even if you’re a beginner.
Why Use Them?
These platforms offer simple, low-cost ways to invest your money. Many also provide educational resources to help you learn as you go.
Where to Start - E*TRADE - Get Started with an Investment Platform
Open an account with E*TRADE to start investing in stocks, bonds, ETFs, and more. The platform offers tools and support for beginners.
Benefits of Investing
The Big Benefits of Investing
Investing helps you grow your wealth and reach financial goals like buying a home, retiring comfortably, or even traveling the world. By starting early, you give your money more time to grow.
Why it’s Important
The sooner you start investing, the more you can benefit from compound growth – when your returns generate even more returns over time. It’s one of the best ways to build long-term wealth!
Where to Start - Mint - Track Your Investments and Net Worth
Download the Mint app to track your investments, savings, and net worth in one place. Seeing your progress over time will help you stay motivated and on track with your goals.