How to Invest $1,000 Like a Professional Without Paying Fees

If you are looking to invest $1,000 like a professional but don’t want to pay 1% of your money to a financial advisor, consider trying this three-step simple system. I'm Tyler, a former financial advisor and portfolio manager, and I create financial content for free to help you make informed investment decisions.

Warren Buffett's Advice

In his 2013 letter to all shareholders, Warren Buffett, debatably the greatest investor of all time, advised his readers to invest 10% of their assets in short-term treasuries and 90% in a low-cost index fund. Here’s exactly how you would do that:

1. Open a TreasuryDirect Account

Go to treasurydirect.gov. Open an account by providing some basic personal information and linking a bank account.

2. Purchase Treasury Bills

Now log in, navigate to Buy Direct, select Treasury Bills, and choose either the three- or six-month term. Buy these in multiples of $100, so you would typically buy one.

3. Invest in a Low-Cost Index Fund

Now go to Fidelity, Schwab, or Vanguard. Open a brokerage account by providing some basic personal information and linking a bank account. Once that account is open and funded, purchase $900 of a low-cost index fund like Vanguard's VOO, Fidelity's FXAIX, or Schwab's SWPPX.

Conclusion

Congratulations! You’ve now invested 10% of your assets in short-term treasuries and 90% in a low-cost index fund. You can rest assured that you have followed the greatest wisdom from one of the best minds in investing for free.

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