How to Begin Investing
Get started today through 3 easy steps
Step 1: Open an Account
It is truly easy to start an account with a low-fee brokerage such as Fidelity, Schwab, and Vanguard. Each brokerage firm allows you to start an account with $0 and they offer extremely low fees for exchange traded funds (ETFs).
When starting, consider opening a Roth IRA and a taxable (individual/joint) account. The Roth IRA is an investment vehicle for future retirement with 2026 contributions up to $7,500 (under 50 years of age) or $8,600 (over 50) per year. A taxable account is an “all-purpose” account affording you flexibility now and in the future. The same ETFs and mutual funds are available for both account types.
Step 2: Pick the ETF or Mutual Fund
In retirement accounts (Roth IRA, 401(k)/403(b), IRA, SEP IRA), research using a target date mutual fund which features a diversified mix of stocks and bonds that automatically becomes more conservative closer to retirement date. In taxable accounts, research broad-based ETFs. I have found starting with a simple ETF such as Vanguard Total World Stock Index Fund ETF (VT) provides amazing diversification as it is over 60% US equities with the rest invested in international assets. More specifics can be found under the learn more below.
Step 3: Utilize Dollar-Cost Averaging
Dollar-cost averaging, a simple strategy that helps investors build wealth over time without worrying about market swings. But more importantly, dollar-cost averaging helps reduce the emotions associated with investing.
One of the easiest ways to invest and take advantage of dollar-cost averaging is to use automatic recurring investments instead of manually purchasing shares on a regular basis.