5 Reasonable Ways To Start Investing in 2018

5 Reasonable Ways To Start Investing in 2018 and proper investment strategies


You'd like to learn how to invest up to $1000.

Is this possible?

After all, don't many financial advisers have start investing minimums? What if you're new to investing? Where do you start?

Yes, there are places you can invest $1,000. And, some of them are pretty nifty, as well.

But, it's not enough to know some places to invest – you should learn some best investing practices. I'll teach you those along the way, too.

I would like to also guide you on how to start investing along with suggesting low-risk avenues to begin your investments

So grab your stash of cash, and let's look at some of the best ways to invest 1000 dollars!

Also read: Bitcoin in Brief Wednesday: China Fights Impersonators and Fraudsters

1. Pick investments yourself using an online trading platform.



If you're the do-it-yourself type, and you have some investing knowhow, you might want to consider picking investments yourself using an online trading platform such as Scottrade.

In my Scottrade review, I found Scottrade to be both user-friendly and to have exceptional tools for portfolio growth (Note: I've also opened accounts at E-Trade, TD Ameritrade, TradeKing and Motif, but enjoyed the customer service of Scottrade the most).

There are many more discount brokers out there, so you might want to spend a little time researching them and seeing which discount broker is right for you. You can also use this guide in helping you choose the best online broker.

Tip: If you're going to be picking investments yourself using your $1,000, you might want to pick out some exchange-traded funds (ETFs). ETFs are known for their lows costs and diversification benefits.

2. Lend to those in need and earn some interest.


If you want to invest into the lives of others and earn some interest, there's a new craze that's both exciting and reasonable: peer-to-peer lending.

Peer-to-peer lending is the practice of lending to borrowers through an online service whose goal it is to bring borrowers and lenders together.





Lending Club is one such peer-to-peer lending service I tried out, and I found it to be very easy to use and reliable (see my Lending Club review).

As an investor with Lending Club, you can invest automatically using investment criteria. Alternatively, you can manually invest by browsing available loans and picking the ones you like. It's up to you!

Tip: Like any investment, make sure you choose notes that reflect your tolerance for risk. Some notes are riskier to invest in than others, and thankfully, you can see this information at Lending Club's website. If this business suits you wall, you can start investing in it.


3. Have a popular robo-advisor manage your money.


If you're not very skilled at investing on your own and you're hesitant to loan money out to particular people online, you might consider hiring a robo-advisor.

Robo-advisors are investment companies who create automated software designed to manage portfolios based on certain criteria. For example, when signing up for such a service, you might take a questionnaire to determine your risk tolerance level or investment goals.

Robo-advisors make investment management available to the masses, since they typically have very low (or nonexistent) account minimums.

Additionally, many robo-advisors have slick user interfaces to help you get relevant information about your investment performance, holdings, and more in a snap.

I interviewed Jon Stein, CEO of Betterment, a popular robo-advisor which grew from nothing to a $3 billion dollar investment company in just under four years. Jon believes the markets represent the success of the global economy. Overall, he expects they will improve over an extended period of time. This view is reflected in Betterment's software. It's set-it-and-almost-forget-it investing!

Tip: If you're ready to get a comprehensive, in-depth financial plan in place, you'd probably do better to sit down with a financial planner. If you have your strategy largely in place, try out a robo-advisor. It's worth a look!


4. Start a Roth IRA


The Roth IRA, my friends, is one of my most favorite investment vehicles.

Why? Because the Roth IRA allows you to get a tax break on the money you withdraw from the plan during retirement instead of getting a tax break when you put the money in (that means you get some tax-free money). That's a good thing for many, many people. The other reason is you have a lot of control over your money with a Roth IRA when compared to your employer-sponsored retirement account.


Those are two great reasons to start a Roth IRA. But let's not forget the main reason you should start one: it's important to save for retirement!

You won't be getting a paycheck from your employer in retirement. No income. None. That's obvious, but let it soak in for a moment. You're going to have to rely on other income sources (like your fantastic Roth IRA) in order to survive.

Tip: Check out some of the best places to open a Roth IRAand start one today! You'll be glad you did.

5. Diversify your money


One of the worst mistakes financial advisors see is when clients don't diversify their money. Don't be like those clients. Be awesome and diversify your money.

And yes, you should diversify your $1,000. With ETFs, it doesn't cost much to diversify your money and make sure you don't ride the single-stock roller coaster.

You might be thinking, "But Jeff, it's only $1,000. Can't I buy some [insert favorite company here] shares?"

Well, you could, but you sure wouldn't be setting yourself up for making smart investment decisions in the future. Be smart with your money even if it's being smart with just a little bit of money. Practice now for the future.

Tip: As you build your portfolio over time, make sure to rebalance it as certain investments within the portfolio will rise and fall in value. Never be overweighted or underweighted in an area. Learn all you can about proper diversification and stick to those best practices.
Concluding Thoughts

Thank you for taking the time to read this article. You know what it means that you read this article? It means you care about doing the right thing with your money.

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