making an investment

A Beginner’s Guide to Investing Money… and Reaping the Rewards Later

When we talk about investment, we think of big sums of money. There was even a time when we thought that investments were just for the rich. How can you invest when you’re making $11 an hour? But that’s the beauty of investment. You don’t have to be super-rich. You can invest as little or as big as you want as long as you can afford it.


If you want to invest in real estate, you can look into Delaware Statutory Trust (DST) investment. Under this scheme, a trust gets hold of real estate properties that you can invest in. It adds real estate holdings to your investment portfolio. Your money can buy partial ownership in a large real estate development. If you are a real estate owner, you can put your property under the trust and allow others to invest in it. But the latter option will give you more responsibilities to develop the property and pay dividends.


Perhaps the most popular of investment options is the 401(k). If your employer can match your 401(k) contribution, then all the better. You can invest as small as 1% of your total annual earnings to your 401(k) portfolio. Your employer, however, will only match 50% of the first 6% of your contribution, so it’s best to start with the minimum. Remember that your employer’s contribution is free money that gets into your portfolio and guarantees a return in the future.

Target-date Mutual Funds

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This kind of investment is reliant on your target retirement date. If you plan to retire in 2050, for example, the fund still has 30 years to grow your money. What it will do is to invest most of your money on stocks since they tend to grow bigger over time. As the retirement date nears, they will shift the investment to bonds because they are less risky.

A mutual fund is one of the easiest types of investments since it allows you to put your money in a variety of investments with one transaction. An investment manager will manage the mutual fund. It’s often a mix of stocks and bonds.


Not sure how to start investing? You can use robo-advisors, which work as an investment broker, except they charge only .25% to .50% of your account balance a year. They can manage the funds for you at such a low rate because they only use computer algorithms to make investment suggestions. They do most of the work, though you should still check your account from time to time.

Treasury Securities

These are a low-risk investment scheme that’s perfect for beginners. While the interest isn’t high, it’s still better than a savings account. You can start by buying treasury securities until you are ready to make bigger and riskier investments. Buying treasury securities is so easy, too. All you have to do is to go to the U.S. Treasury’s portal called Treasury Direct and choose between fixed-income U.S. government securities and Treasury Inflation-protected Securities. You can arrange for the payments to be withdrawn directly from your payroll savings.

The best thing to do with your money is to put it in low-risk investments for a start. Don’t let it sit in your savings account. It should be accruing larger interest rates from bonds, stocks, and properties.

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