Category: Beginner Investor

  • Beginner Investor? | Where To Start? | High-Yield Savings Accounts

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    High-Yield Savings Accounts

    Examples to Start With:

    • Marcus by Goldman Sachs, Ally Bank, Discover Bank.

    Where to Open:

    • Online banks; check NerdWallet or Bankrate for best rates.

    Key Considerations:

    • Interest rate vs. inflation (currently 4–5% is good).
    • FDIC insured.

    Starting Amount:

    • Any amount; start with $50–$500 as your emergency fund.

    Goals:

    • Build a cash safety net.
    • Don’t use for long-term growth — this is for savings, not investing.

  • Beginner Investor | Where To Start | Investing in Mutual Funds

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    Examples to Start With:

    • Vanguard Total Stock Market Index Fund (VTSAX)
    • Fidelity ZERO Index Funds (no fees)

    Where to Buy:

    • Vanguard, Fidelity, Charles Schwab.

    Key Considerations:

    • Minimums: many funds require $1,000–$3,000 to start.
    • Expense ratios: lower is better.

    Starting Amount:

    • $1,000–$3,000 for traditional funds.
    • Some brokerages now allow fractional mutual fund shares.

    Goals:

    • Passive, hands-off investing.
    • Good for retirement accounts.

  • Beginning Investor | Where to Start | Investing in ETF’s (Exchange-Traded Funds)

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    2) ETFs (Exchange-Traded Funds)

    Examples to Start With:

    • SPY or VOO (S&P 500 Index)
    • QQQ (tracks Nasdaq 100)
    • VTI (Total Stock Market)

    Where to Buy:

    • Betterment or Acorns (automated).
    • Fidelity, Schwab, Robinhood for DIY.

    Key Considerations:

    • Low expense ratio = good (under 0.2% is great).
    • No load or transaction fees is best for small accounts.

    Starting Amount:

    • $100–$500 with fractional shares.
    • Some robo-advisors have $0 or low minimums.

    Goals:

    • Diversify instantly with one purchase.
    • Learn about sectors and index investing.

  • Beginning Investor | Where to Start | Investing in Stocks

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    Examples to Start With:

    • Large, stable companies (“blue chips”) like Apple (AAPL), Microsoft (MSFT), Coca-Cola (KO), or Johnson & Johnson (JNJ).
    • Beginner-friendly ETFs like S&P 500 ETFs (VOO, SPY) if you want instant diversification.

    Where to Buy:

    • Robinhood, Webull, M1 Finance — all offer free stock trades.
    • Fidelity or Charles Schwab for beginner-friendly tools and research.

    Key Considerations:

    • Commission fees (most are $0 now).
    • Minimum purchase is the share price, unless you buy fractional shares.
    • Taxes on capital gains when you sell for profit.

    Starting Amount:

    • $50–$500 is fine to get started with fractional shares.
    • Focus on learning how buying/selling works.

    Goals:

    • Build familiarity with how the stock market works.
    • Start small; focus on learning, not big returns yet.
    • Hold long-term; avoid day-trading early on.