Ramit Sethi breaks down three beginner moves: get your full 401(k) match from your employer (free money), open a Roth IRA at Fidelity, Schwab, or Vanguard, and put the money in target-date funds instead of picking stocks. All three take minutes and beat trying to pick winners.
Here are the three easiest ways to start investing today even if you have zero experience. Number 1 401k match if your employer offers a 401k match, you are literally leaving free money on the table if you don't take it. This is the best return on investments you will ever get. Just email your HR person and see if they offer a 401k match. Number two your Roth IRA. This is one of the most powerful investing accounts available because the money you put in it grows tax free. That means when you take it out you keep 100% of the profits. You can open up a Roth IRA at Fidelity Schwab or Vanguard today. And number three target date funds. I love these investment options. Once you put money into your retirement accounts you actually have to buy investments. Otherwise it's just sitting there. But individual investors really should not be picking individual stocks. One great option is a low cost target date fund that will do all the work for you.
