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Investing for Dummies: How to Earn Big When You Only Have a Little

13 February 2020 No Comment

Growing your wealth, lowering your taxable income, saving for retirement, and earning higher returns are some of the most common reasons to start investing. You may think making large investments is the only way to grow your wealth, but that’s far from the truth. Believe it or not, you can take your net worth to the next level by making small investments.

It’s easier than you think if you use our no-brainer investing for dummies guide. We’ll tell you the best ways to make the most out of your small investments. Don’t know where to start?

We’ve got you covered. Here are 5 ways to make small investments to skyrocket your wealth.

Increase Your Retirement Plan Contributions

You may think opening a brokerage account is the only way to start investing. Yet, increasing your retirement plan contributions is the easiest way to make the most out of small investments.

Consider increasing them up to the employer matching limit. Remember your employer will match your contributions up to a certain percentage.

Consider Investing in Index Funds

If you don’t want to buy several investments, you may consider investing in index funds. The managers of these investments track market indexes such as the S&P 500 and shortlist several companies to invest in.

An index fund manager invests in several companies tracked by the index to mimic its performance. If one of the investments underperforms, the manager will sell these investments and choose a better performing company to invest in. This strategy allows investors who buy index funds to minimize the risk of their investment portfolio.

Use a Robo-Advisor

Opening a traditional brokerage account can cost a lot when you add brokers’ commissions and other associated fees. Today, you can open an account using a robo-advisor.

When you choose this type of advising, your commission costs will decrease exponentially. The best thing about choosing a robo-advisor is your investments will run on autopilot. This technology will make the best trades according to your risk profile, financial goals, and investment amount.

Invest in Real Estate

You may think buying a property is the only way to invest in real estate, but that’s far from the truth. In today’s technology-driven world, investors can use online platforms to invest in a managed real estate portfolio.

If you don’t know where to start, you should learn more about Concreit to get started today.

Consider Investing in Mutual Funds

When you buy mutual funds, it’s like investing in a basket of investments that have something in common. Let’s say you choose to invest in a US equity mutual fund. If you make this investment, you’ll be buying a package of US equities or stocks. Believe it or not, mutual funds allow you to invest in a diversity of industries from energy to real estate.

Will Our Investing for Dummies Strategies Make a Difference?

You may think taking your net worth to the next level is next to impossible. Yet, taking advantage of our investing for dummies strategies will help you achieve your financial goals.

If you’re unsure where to start, you may consider consulting a financial advisor. An expert can guide you every step of the way to build the right portfolio to start growing your wealth today.

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