Updated for 2020
Choosing your first investments can be overwhelming. There are so many options available, and it’s hard to figure out where to start…and the sheer number of choices can be crippling.
To get instant diversification, low fees, and hundreds of commission-free investments, ETFs (exchange traded funds) are the best way to go. That narrows down your choices a lot, but there are still more than 2,000 ETFs to choose from.
So to help you dip your toe in, here are some good portfolio-foundation ETF ideas to get you started. And since the minimum investment for most ETFs is the price of a single share (plus commissions, if any), you can build a strong base no matter how much money you have to invest.
Remember, you’re in this for the long haul, so don’t freak out when the market dips – that will absolutely happen, and you can ride it out. It will rebound eventually, and you’ve got time. In fact, buying when the market is down can be like shopping when your favorite things are on sale.
This five-ETF combo covers the basics, and you can build from there as you get more comfortable with investing. The NYSE:XXX means that the ETFs trade on the New York Stock Exchange, and the XXX is the symbol for that particular ETF.
PLEASE NOTE: These are examples of funds in each category, NOT investment recommendations. Please make sure any investment you make fits in with your overall financial plan.
A few things to keep in mind as you get started:
The most important thing here is to get started. The sooner you invest, the more time your money has to grow.
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