So you've got $100!

Do you want to begin investing for your future, including retirement?

Woman points at letters from Scrabble game.  The letters build the word wealth.

You won't build wealth by keeping your extra cash under your mattress and hoping for the best. You need to invest your money strategically!

What Is Your Investment Style?

Do:

  • Decide if you need easy access to your money

  • Decide how much risk you're comfortable with taking

  • Set up a rainy day fund for emergency car repairs, bills, and other unexpected expenses

Don't:

  • Forget to research a variety of investment options

  • Forget to consider your employer's retirement plan (if available)

  • Forget to decide on your investment timeline

  • Fall for get rich quick scams

A kitten clawing at someone trying to take his money.

Quiz

You have $100 to invest but don't know anything about investing and don't want to lose your money. What should you do?

Have a friend invest it for you

Invest in something low risk

Keep it in a checking account

Keep it in cash

Know Your Investment Options

Bernie Sanders saying I am once again asking that you invest in your future.

  1. Invest in a mutual fund

    A mutual fund pools money from many investors and invests it in stocks, bonds, and short-term debt. Risk level is medium to low.

  1. Invest in fractional shares

    Fractional shares are a “fraction” or “slice” of an individual stock. It lets you use $100 to buy stocks you couldn’t otherwise afford. You can also diversify your $100 investment across many different stocks. Risk level varies.

  1. Invest in yourself: enroll in a course or certification 

    Online platforms like HarvardX and LinkedIn Learning let you purchase online courses and certifications to gain skills in your professional lifeto help you get a promotion at your current job, or maybe drop your 9-to-5 and begin working in a brand new field.

  1. Open a Roth IRA

    A Roth IRA (Individual Retirement Account) is a retirement account you can open in addition to other accounts you have like a workplace 401(k). This type of retirement account lets you invest with after-tax dollars, and your money grows tax-free until you're ready to access it.

  1. Open a high yield savings account

    If you have $100 to your name but you don’t have any extra cash for emergency expenses, your best bet for now is saving that money. However, you can easily earn a better rate of return with a high-yield savings account from an online bank. 

Tools To Help You Plan And Monitor Your Investments

Do:

  • Download investment apps to your phone

  • Decide how you want to receive statements (email or paper)

  • Decide how you'll grow your investment account in the long-term

  • Pay attention to account fees

Don't:

  • Cash in your investment unless you really need the money

  • Forget to track your investments

  • Forget about online toolsto help you manage your investments

  • Sell or cash in your account when the investment market fluctuates

Man saying I'm in the investment game baby!

Take Action

Seedlings growing into a plant.  The words See Your Money Grow

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This Byte has been authored by

MH

Mary Hoftiezer

Instructional Designer