3 Beginner Investments


If you know anything about investing, you know that there are varying levels of risk associated with different types of investments. There are low-risk investments, medium-risk investments and high-risk investments. If you are not sure about what type of investment is right for you, you should probably consult a financial advisor like Frederick Baerenz or hire a wealth management company like the one run by CEO Frederick Baerenz. For you beginners and dabblers, to help you start learning about some of the types of investments you can invest in, here are three beginner investments. 

  1. 401(K) Plan

One of the easiest types of investments anyone can invest in is a 401(K) plan. A 401(K) plan is actually a type of retirement plan. Some employers even offer a 401(K) (or other retirement plan) as part of a benefits package and withdraw a portion of your paycheck to deposit in it. One of the best things about a 401(K) plan is that there is no minimum requirement; you can invest as much as you want and increase or lower that amount as you please. You can even add more than what your employer adds. A 401(K) is affordable, flexible and low-risk. Everyone should have either a 401(K) or some other kind of retirement plan.

  1. Investment App

There are many investment apps out there that are a great starting place for beginners. These apps generally require a small minimum investment and are low-risk. They also are generally easy to understand and use.

  1. Certificate of Deposit

A certificate of deposit is another low-risk investment that is great for beginners. It is basically a savings account that accrues interest payments over a fixed amount of time. Certificates of deposit come from a bank and are very stable. The risk factor generally only comes into play if you start taking money out before you are supposed to. 

These are only three of many investment types. Make sure to be cautious and do research before picking an investment, as some bad investments can result in massive losses.