Investing
Grow money over time, starting small, and spot scams.
New to money stuff? Start with Money basics, a 10-minute guide.Why this matters
Investing can help your money grow over many years, so it's there when you need it, like in retirement. You don't need a lot to start. It matters most to start in the right order, keep fees low, and avoid scams.
Lessons
- Investing basics: stocks, bonds, and index fundsWhat investing is, the main things you can invest in, and when to start.2 minute read
- Why fees matterA fee that sounds tiny can cost you thousands of dollars over time.1 minute read
- Retirement accounts: 401(k)s and Roth IRAsTwo common ways to save for retirement, and why the account type matters.2 minute read
- How to spot investment scamsThe warning signs that an "opportunity" is really a scam, and what to do.2 minute read
Tools
Common mistakes
Investing before you have an emergency fund.
Instead: Save a small Emergency fundMoney set aside only for surprises, like a car repair or a medical bill, so you don't have to borrow.More in the glossary first, so a surprise doesn't force you to sell your investments.
Not getting your full employer match.
Instead: If your job offers a match, try to put in at least enough to get all of it.
Paying high fees.
Instead: Look for low-cost Index fundA fund that buys a little of many stocks or bonds at once, to match a whole market. It spreads out your risk and usually has low fees.More in the glossary, and check the Expense ratioThe yearly fee a fund charges, shown as a percent of the money you have in it. Lower is better.More in the glossary.
Trusting promises of big, guaranteed returns.
Instead: Every real investment has some risk. A promise of high, guaranteed returns is a red flag for a scam.
Where to get free help
- Investor.gov (SEC)
Check whether an investment professional is registered, and learn how to spot investment scams.
- Report a scam to the FTC
Tell the Federal Trade Commission about a scam, even if you didn't lose money. You'll get advice on what to do next.
- Free tax help (VITA and TCE)
IRS-certified volunteers prepare and file tax returns for free for people with low to moderate incomes, people with disabilities, people who speak limited English, and older adults. Most sites are open during tax season.