Ramit SethiRamit Sethi: The No-BS Guide to Living a Rich Life

Investing 101. Start investing now and thank yourself later. #investing #investment #moneyadvice

12 Jan 2023 · 1 min

Watch on YouTube

0:58

Short YouTube advice clip by Ramit Sethi explaining a simple way to start investing: use a target date fund (choose the fund matching the year you will turn 65), open it at a brokerage such as Vanguard, Fidelity, or Schwab (speaker prefers Vanguard), fund it with an initial amount (example: $1,000), and set up automatic monthly contributions (examples: $100, $500, $1,000). The clip emphasizes ease and the long-term growth benefits of starting now.

Questions this video answers

The target year you will turn 65.

Start investing with $1,000.

Vanguard, Fidelity, Schwab (speaker says they personally use Vanguard).

$100, $500, $1,000 per month.

Chapters

Everybody talks about getting started investing, but how are you supposed to actually do it? Well, here's the advice that I give to my family members. The simplest way to invest is something called a target date fund. Target date means the target year you will turn 65, because that's when a lot of people retire. So you can go on over to Vanguard, Fidelity, Schwab. I happen to use Vanguard. And you can type in Vanguard Target Date Fund. Find the fund that matches up with your age and the year you will be 65. And all you have to do is start investing with $1,000, $1,000. And you can set it up to happen automatically every month, 100 bucks, 500 bucks, a thousand bucks a month, whatever you can comfortably afford. And you will see that money, over the course of the long term grow. And the numbers are incredibly counterintuitive. They're so counterintuitive. This thing just fell out of my ear. That is how you get started investing this year.