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How to invest in 3 Simple Steps 

For many people who want to invest, the process can seem "too” complicated. It's not.

All that's required is a good explanation and you can start investing quickly and easily. And you don't need a lot of money to begin. So, let's get started.

Even if you're not sure you're ready to start investing today, it's smart to set up an account so you can begin as soon as you are ready

Open a

Brokerage Account

Deposit or transfer money into the account

Buy an Index Fund*

or other investment

Each step is explained in full below with links to make getting started even easier. 

STEP 1: Open a Brokerage Account

A brokerage account is different from a bank account, and is required to buy and sell stocks, funds and other investments.  You may open a brokerage account with a bank or a brokerage firm.  If you are investing for retirement you may want to consider  a brokerage IRAs (independent retirement account) which offer tax advantages IF you meet the requirements.  

 

TIP: Pay attention to fees when you compare brokerage accounts. Check for transaction (buy & sell), monthly, account and fund management fees.  

Easy link to:   Vanguard, Fidelity, SchwabEtrade**

 

TIP: If you would prefer an investing app choose one that does not require you to spend to save and invest! Investing should be a stand-alone priority not conditional on spending.  

 

STEP 2: Transfer or deposit the money you want to invest into your new brokerage account.

It is often possible to link your bank account to your brokerage account for easy transfer. Step-by-step directions on how to link your accounts will be provided by the brokerage company when you open your account.  There are a million ways to make  investing sound complicated, and the financial industry often does. But, now you know it doesn't need to be complicated.  

STEP 3: Enter a "buy" order to purchase your investment in your brokerage account. 

Your brokerage home page will likely have a tab marked "Trade" or the equivalent where you can enter an order to buy your selected selected fund*or other investment. 

 

There are a million ways to make investing sound complicated, and the financial industry often does. But, you now know how to make it simple. What is important to recognize is that all investments carry some degree of risk. Even insured bank accounts. How? Savings accounts carry inflation risk - the risk that the deposit will not earn enough (interest) to keep pace with the increasing cost of living (inflation). If that happens, when you withdraw the money it will have lost some of its purchasing power - it will buy less. When investing in securities, there is the potential to loss the money invested. To make smart investment decisions you must know your risk tolerance and time horizon - for how long you will be investing until you need the money. Then you can choose investments with an appropriate risk-reward profile. Sign up for early access to our self-directed mini-workshops on compounding and smart investing.  

​*An Index Fund with a low management fee, established track record, and no transaction costs is a smart, easy way to start investing.  Learn why A Fund is a basket of individual stocks which offers diversification with a single investment. An Index Fund tracks a specific index - the most well-known are the DJIA, the S&P 500 and NASDAQ.

 

**The above links are provided solely for the purpose of making it easier for you to compare options. We do not endorse or recommend any individual financial product or service provider. 

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