How To Invest For Beginner

As for most beginners, the goal for investment is to make money while keeping the original capital.

Starting from here, we divide our goal into two, the first is to maintain value, and the second is to add value.

To maintain value, some relatively safe investments are preferable, such as a bank saving account with a high yield, and gold.



1. Certificate of Deposit

Let’s say you start with $1,000, if you’re not putting all of your $1,000 into the market at once, you might set aside some of it in a bank certificate of deposit.

It gives you fixed interest for a period of time. The longer the time period, the higher interest you might get.

2. Gold

When you don’t believe in the bank system or the bank note, you might want to consider gold as a way to keep your money’s worth.


To go for a higher interest goal, there are funds and retirement account.

  1. Index Funds

Buying stocks can be risky. Unless you are massive investor like Warren Buffet, it is quite hard to predict how a stock is going to perform.

An Index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index, such as the Standard & Poor's 500 Index (S&P 500).

The benefits of index funds are,

1) Safe. You diversify your risks instantly to different companies you buy.

2) Low operating costs. It doesn’t require active management because this type of fund follows the sign of the market, so your profit won’t be eaten up by management fees.

2.  Retirement Account

Retirement accounts like a 401(k) or an IRA minimize your taxable investment income.

Taxable brokerage accounts require you to report your sold investments and dividend income on your annual tax return. Yet, you can have penalty-free access to your investments.



  1. Turn to a Robo-Advisor

If $1,000 isn’t much of a concern, and you want to be free from all the handling, it might be a good idea to us a robo-advisor.

Investing your first $1,000 is exciting. It allows you to learn along the way, and helps you develop your own sense of investment.

(Images from the internet)