How to Start Investing

Matt Franklin |

If you’re interested in beginning to invest but are nervous, or simply don’t have a lot of money to invest, why not start slow?

There are a multitude of ways to get started without risking a lot of money in the process. If you have $1,000 and are ready to start investing, here are some ways to do so:

  • Open an IRA. While investing in an IRA is not the same as buying stocks outright, you are still investing in the market and you will still increase (or decrease) your IRA balance based on the investment choices you make. As an added benefit, you’ll also be increasing your retirement fund.
  • Consider U.S. Treasury Securities. If you really want to start investing conservatively, you may want to invest U.S. government securities. While the return won’t be enormous, the investment is secure and you can start with as little as $100.00.
  • Consider investing in real estate. Yes, you can start with $1,000 by investing in a Real Estate Investment Trust (REIT). REIT’s allow multiple parties to invest in a single real estate investment without the hassle of having to find reliable tenants and maintain the property.
  • Invest in a small business. If you have a latent entrepreneurial spirit, why not invest some or all of your $1,000 in a small business idea. If this idea doesn’t appeal to you, consider investing in someone else’s small business. If you do decide to invest in someone else’s business be sure to complete your due diligence before parting with your money.

Pay down your current debt. While this is probably the least exciting option, it can pay the biggest dividend of all.

While $1,000 may not seem like much, starting your investment journey with minimal risk will give you the knowledge and the confidence to tackle more high-risk investments down the road.

*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2021 Advisor Websites.