You don’t need a specific amount of money to start investing on Wall Street. Whether you have a lot or a little, there are plenty of ways to begin buying stocks while building up a diverse financial portfolio that sets you up for a successful retirement. Some people start investing with as little as $1, while others are looking to buy shares that total $100,000.
Below are the top 10 ways to invest a single $100 bill on Wall Street as recommended by financial experts. It’s time to turn that cash into a continuously growing source of income for your future self!
1. Start On Your Own
That’s right, you can definitely start investing all on your own. If you think you have great earnings potential, this might be a good way to start. Put your $100 towards your own self can yield a surprisingly high ROI as the years go by.
2. Open a 401(k)
You might work for a company that offers retirement plans for all of its employees. Talk with your employer about taking a portion of your payment out of your paycheck and contributing it towards a 401(k), which is an especially good idea if your company provides a match. Your elderly self will thank you!
3. Use an Online Broker
There are some extensive online stock brokerage services that let you trade for next to nothing. Not to mention, options like Ally Investment allow you to fund an IRA (traditional or Roth) starting at just $100.
4. Invest in Index Funds
Buying just stocks isn’t the only way to trade or profit from the stock indexes. You can invest $100 in index funds, especially low-cost index funds. This will end up giving you pretty good results over a long period of time.
5. Open a Roth IRA
A Roth IRA is another type of retirement account, but unlike a 401(k), a Roth IRA offers completely tax-free savings. This means you won’t have to pay taxes on your money once you withdraw it as you reach retirement age. $100 is plenty of money to open a Roth IRA and start investing so your retirement fund can grow.
6. Try Out Peer-to-Peer Lending
Instead of sending your money higher up the chain, why not invest in your peers? You can join a lending group dedicated to helping peers lend and profit from each other. This huge marketplace is a great way to build up income as you research your next moves on Wall Street. While you’re at it, make sure you also check out https://wallstmastermind.com/ if you’re interested in learning how you can be one of those guys wearing bespoke suits and making power moves on the wall street like you see in those TV shows. But not as an actor, do it as a real life skill. Check it out.
7. Use a Robo-Advisor
You can access so many different online tools and resources to set up an investment portfolio without even needing to speak to another person. Robo-advisors manage your portfolio by asking you questions and making investments based on your risk levels.
8. Open a High-Yield Savings Account
This option may not necessarily be the same as investing in Wall Street, but it is a completely safe way to invest. In fact, it’s the safest way to invest. Open a high-yield savings account at your trusted bank so you can profit off of the money that you save.
9. Get a Brokerage Account
If you like doing things old school, or you just prefer to speak to someone face-to-face, getting started with a brokerage firm is easy and highly recommended. You can easily buy stocks starting at $100, with regular payments being made moving forward. Brokers can also make recommendations for new investors.
10. Invest in an Exchange-Traded Fund
Modest investments are a great way to start out. If you are still testing the waters to find your own level of comfortable risk, try investing in an exchange-traded fund. This lets you choose between different indexes and stocks that immediately boost diversification.
Don’t Wait Until It’s Too Late!
The worst thing you can do with your $100 is to sit on it! Nothing is worse than not investing at all. Find a way to put your money into your future and reap results that will set you up for the rest of your life.