Thu Jun 27 2024, by Tyler Gardner
How to Invest $1,000 in the Stock Market in 2024
Here's how I would invest $1,000 in the stock market in 2024 as a former professional portfolio manager and self-made trillionaire.
Step 1: Open a Roth IRA
First, I would open a Roth IRA. This is where I would do all of my investing, especially if I'm in my 20s or 30s. Why? Because all of your gains are ultimately 100% tax-free after you turn 59 1⁄2, and because you can take back the money that you put in at any time for any reason.
Step 2: Invest in an Aggressive Growth Fund
Second, I would put $800 of that money into an aggressive growth fund like Vanguard's VIGAX. It has fees of 0.05%, and it invests in high-risk, high-reward companies. For a long-term winning strategy, it's hard to beat.
Step 3: Invest in Individual Stocks
Finally, I would invest the remaining $200 in 10 individual stocks that I thought would just crush it going forward. That way, even if I lose nine of those bets, if just one hits big, I avoid paying capital gains taxes on a potential massive win. Just make sure that these individual stocks are not already held in your aggressive growth fund.
Final Thoughts
And remember, personal finance is always personal.
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