15 ranked items · community-voted
Starting your investment journey can be daunting, but it doesn't have to be complicated. This list showcases some of the easiest and most accessible ways for beginners to start building their wealth through investing.
ETFs are investment funds that are traded on stock exchanges, much like stocks. They typically offer diversified exposure to various assets, including stocks, bonds, or commodities, making them a versatile choice for investors.
💡 ETFs usually have lower fees than mutual funds.
Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central authority. Investing in cryptocurrencies can be risky but also offers the potential for significant returns.
💡 Bitcoin, the first cryptocurrency, was launched in 2009.
Target date funds are mutual funds that automatically adjust the asset mix over time based on the target retirement date. They provide a simple way for individuals to invest for retirement without requiring them to make frequent changes to their portfolios.
💡 These funds are designed for investors who want a set-and-forget approach.
DRIPs allow investors to reinvest their dividends to purchase additional shares automatically, rather than receiving the cash. This strategy can accelerate wealth accumulation over time, taking advantage of compound growth.
💡 Many DRIPs allow investors to buy shares at a discount.
Dollar-cost averaging is a strategy that involves investing a fixed amount of money at regular intervals, regardless of market conditions. This approach can help reduce the impact of volatility and lower the average cost of investments over time.
💡 It can lead to more disciplined investing behavior and less emotional decision-making.
These apps allow users to invest small amounts of money, often rounding up purchases to the nearest dollar and investing the spare change. This approach makes investing accessible and easier for those who may not have significant amounts to invest initially.
💡 Micro-investing has grown in popularity due to its millennial-friendly approach.
Financial coaches provide guidance and support to individuals looking to improve their financial literacy and investing strategies. They can help clients set realistic goals, create budgets, and develop investment plans tailored to their situation.
💡 Coaching can enhance understanding of financial markets and personal budgets.
REITs allow individuals to invest in real estate without having to buy or manage properties directly. These companies own or finance income-producing real estate and distribute a significant portion of their income as dividends to shareholders.
💡 REITs have been known to outperform the S&P 500 over long periods.
A Self-Directed IRA allows investors to manage their own retirement accounts and can include a wider array of investments beyond stocks and bonds. This option can empower investors to diversify their portfolio with assets such as real estate and precious metals.
💡 This investment vehicle offers tax advantages similar to traditional IRAs.
Peer-to-peer lending platforms enable individuals to lend money directly to others, bypassing traditional financial institutions. This investment option can yield higher returns than standard saving accounts, albeit with higher risks.
💡 Investors can earn interest rates that are often higher than those offered by banks.
Robo-advisors are automated platforms that provide financial planning services with minimal human intervention. They utilize algorithms to manage your investment portfolio based on your risk tolerance and goals, making investing simple and efficient.
💡 The first robo-advisor, Wealthfront, launched in 2011.
Savings bonds are government-issued bonds that are a low-risk way to invest and earn interest over time. They can be a good starting point for new investors seeking to grow their savings in a secure manner.
💡 Series I bonds offer inflation protection.
A basic savings account allows you to earn interest on your deposits while providing easy access to your funds. It is often the first step individuals take towards saving for investments and building financial security.
💡 Savings accounts typically offer lower interest rates compared to investment accounts, but they provide liquidity.
Index funds are mutual funds or exchange-traded funds that aim to replicate the performance of a specific index, such as the S&P 500. They offer a low-cost way to invest in a diversified portfolio and are ideal for long-term investors.
💡 Index funds have historically outperformed 90% of actively managed funds over long periods.
Socially responsible investing involves choosing investments based on ethical guidelines and the social impact of companies. This approach not only aims to achieve financial returns but also promotes positive social or environmental change.
💡 The number of sustainable investing funds has increased significantly over the last decade.
This ranking is generated by community votes on List Bunny, a free directory of curated top-ten lists across travel, entertainment, sports, food, history, and more. Every visitor can vote, and the most popular ordering becomes what new visitors see. Tap any item above for details, or browse thousands of similar lists from the homepage.
Looking for hands-free auto-play? Try Watch Mode — narrated top-10 lists for waiting rooms, lobbies, and ambient TV displays.