Fri Nov 22 2024, by Tyler Gardner
How I Would Invest My First $500
Hello, I'm Tyler, a former financial advisor and portfolio manager. Now, I create financial content for free so you don't have to pay for it.
1. Invest in a Low-Cost Total Stock Market Fund
First, I would invest $450 in a low-cost total stock market fund. This fund will give you exposure to all the blue chip companies in the S&P and the NASDAQ but also includes smaller companies that usually have room for further growth. Over the last 80 years, smaller companies have outperformed larger companies by almost 2%.
2. Allocate Funds to an Emerging Markets Fund
Next, I would invest the remaining $50 in an emerging markets fund. This investment allows for direct exposure to fast-growing markets in countries like China, India, and Brazil.
3. Automate Your Investments
Lastly, I would automate transfers of $50 a week into this account. Consistently invest $45 in the total market fund and $5 in the emerging market fund. By following this strategy diligently, in 40 years, you could potentially have over a million dollars waiting for you.
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