Diving into investing can be complex and intimidating at first. Rather than jumping straight into the deep end, you can start with some simple investments for beginners.
As a first-time investor, consider adding these to your roster:
Utilize a 401(K)
A 401(k) is an excellent and rather simple way to begin prepping for retirement. This is an employer-offered plan that allows you to save and invest part of your paycheck before taxes. Sometimes, your employer will even match what you contribute (up to a certain amount).
It allows this money to grow and compound tax-free until your golden years. This is one of the most common and simple investments for beginners because it’s a tax-efficient and hassle-free way to invest your wealth with diversification.
Consider a Roth IRA
A Roth IRA is another one of the simple investments for beginners that can easily help you prepare for retirement. Unlike a 401(k), a Roth IRA is taxed initially, and then it grows and can be withdrawn tax-free in your golden years.
For 2016, your contributions can be up to $5,500 (with an additional $1,000 allowed if you’re over age 50). Although these are the maximum contributions, Roth IRAs typically have low minimum requirements for opening and contributing to an account, so they’re perfect for investing novices.
Learn more about how to get started with simple investments for beginners
At LexION Capital, we understand that investing can be a confusing new world for many. That’s why we meet with each new client individually to explain and ensure they’re aware of every aspect of the investment process. If you’d like to learn more about getting started with investing, don’t hesitate to contact us today.