Investing is not just for the rich. It’s a tool anybody can use to create wealth. Given time, even small investments can become an impressive nest egg.
To illustrate, let’s assume a smart 18-year-old invests $300 a month for just 8 years (a total of $28,800). She could retire with $2 million even if she never invests another dime after her 26th birthday. That impressive return on investment assumes a 10% annual return, which is optimistic but not unrealistic. It is the S&P 500’s average return over the last 90 years.
SuperMoney’s Investment Guide provides you with the insights and techniques to create the diversified portfolio you need to meet your financial goals.
If you want to buy and sell stocks, bonds, and mutual funds, you are going to need a brokerage firm. Choose a brokerage with affordable fees that fits your investment style and risk tolerance.
Some investment advisors take a big picture approach to your financial life and create a comprehensive long-term investment plan based on your current circumstances and your financial goals. Others specialize in specific niches, such as socially responsible investments or municipal bonds. Compare the fees and features of leading online investment advisors and find the best fit for your portfolio.
You don’t have to pay a professional to invest your money. A few basic principles are all you need to build a diversified portfolio. These tools will help you get started.
These platforms make it easy for investors to lend directly to borrowers. Marketplace platforms, also known as peer-to-peer lending, makes it easy to diversify your portfolio with an investment that has low correlation with stocks, bonds, and other conventional financial products.
Investing in startups used to be something only wealthy angel investors could do. Thanks to crowdfunding platforms you also help startups get off the ground and reap the benefits of their success.