Investing your money is the most reliable way to create wealth over time. If you’re new to the investing world, we’re here to help you get started. It’s time to make your money work for you.
Before you put your hard-earned money into an investment vehicle, you’ll need a basic understanding of how it works. Here are some of the best ways to invest money:
However, there's no one-size-fits-all answer here. The best way to invest money is whichever way works best for you. To figure that out, you’ll want to consider:
The investing world has two major camps when it comes to the ways to invest money: active investing and passive investing. We believe both styles have merit, as long as you focus on the long term and aren't just looking for short-term gains. But your lifestyle, budget, risk tolerance, and interests might give you a preference for one type.
Active investing means taking time to research investments yourself and constructing and maintaining your portfolio on your own. If you plan to buy and sell individual stocks through an online broker, you're planning to be an active investor. To successfully be an active investor, you'll need three things:
On the other hand, passive investing is the equivalent of putting an airplane on autopilot versus flying it manually. You'll still get good results over the long run, and the effort required is far less. In a nutshell, passive investing involves putting your money to work in investment vehicles where someone else is doing the hard work -- mutual fund investing is an example of this strategy. Or you could use a hybrid approach. For example, you could hire a financial advisor or use a robo-advisor to construct and implement an investment strategy on your behalf.