You Can Start Investing Without a Lot of Money
Tips for investing without a lot of money.
Investing is a great way to save for your golden years. You might think that you need to have a big chunk of change to get started, but you don’t. Here is a great ways to start investing without a large amount of money.
Start With Retirement
Investing is a great tool to grow your retirement nest egg. So if you have a 401(k) through work, start there.
Determine Your Contributions. Dedicate whatever amount you can safely invest per month into that account. And if your employer matches your contributions, try to contribute enough to get the full match amount.
Open an IRA. If you don’t have a 401(k) at work or would like another way to save for retirement, open a Traditional IRA or Roth IRA. The main difference between the two is how the taxes work.
- Traditional IRA, you invest pretax dollars, and then you pay the taxes on withdrawals in retirement.
- Roth IRA, you invest after-tax dollars and then you don’t pay taxes on withdrawals during retirement.
One thing to keep in mind: Find an IRA account that allows you a low or no-minimum starting point.
*Fortera’s Wealth Management Team is here to help you work toward a strong financial foundation. Providing members with access to retirement planning solutions offered through Osaic Institutions. The licensed and experienced Financial Professionals of Osaic offer thoughtful guidance designed to help clients understand their options and financial priorities. We’re here to help you navigate important financial decisions and work toward your long-term goals. Visit our Financial Planning page to learn more or give our Wealth Management staff a call at 931.431.3315.
This material is provided for educational purposes only and is not intended as individualized investment advice. Original article by Chris O'Shea and adapted in partnership with SavvyMoney.
*Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Fortera Wealth Management is a trade name of Fortera Credit Union. Osaic Institutions and Fortera Credit Union are not affiliated. Products and services made available through Osaic Institutions are not insured by the NCUA or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by a credit union or credit union affiliate. These products are subject to investment risk, including the possible loss of value. For more information, please visit http://www.finra.org/ or http://www.sipc.org/. Members should consult a tax advisor for additional tax information.