Investing money, especially in the stock market, is an incredible long-term wealth-building tool. Over the long run, the stock market has historically outperformed other investments such as bonds or savings accounts. If you're looking to start investing in stocks, there are a few steps you can take to get started.
To invest in stocks, open an online brokerage account, add money to the account, and purchase stocks or stock-based funds from there. You can choose from a variety of online brokers, each with different fees and features. Do your research to find one that suits your needs.
With income a priority for retirees, it's time to line up some low-risk moneymakers. Investing in individual stocks isn't for everybody. The best advice for beginners is to go slow, use a simulator first with play money, and gradually increase your investments as you gain experience.
Many of the experts we spoke with suggested, as a general rule, to invest a set percentage of your after-tax income. This can help you build wealth over time while also managing risk. Remember to diversify your investments to reduce the impact of market fluctuations on your portfolio.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. It's important to do your own research and make informed decisions when investing in stocks.
If you're new to investing, the best investment apps should offer low fees and access to the types of accounts and investment products you are interested in. Look for apps that provide educational resources and tools to help you make informed decisions about your investments.
Investing can be complicated, and careless actions and strategies can cause unnecessary difficulties in the process. Among the most frequent mistakes are trying to time the market, neglecting to diversify your portfolio, and letting emotions drive your investment decisions.
Set a goal for your money, decide how much help you want, and choose an investing account. You can then invest in assets like stocks, bonds, mutual funds, or exchange-traded funds (ETFs) based on your risk tolerance and investment objectives.
