Investing Virgin? Here’s How to Invest Your First $1k, $5k, or $10k

Plus: save on taxes and pick the best IRA

Photo by Jp Valery on Unsplash

How to Invest Your First $1,000

“The first step is to consider your objectives when deciding where to park the money,” says wealth manager Brendan Dooley. A Traditional IRA is easy to open and can help reduce your tax burden: “Best of all, the account can be funded up for the 2020 tax year up until April 15th,” he says.

How to Invest Your First $5,000

If you’re ready to invest $5k or over, you’ll hit those contribution limits on a Traditional IRA. The alternative? “Enter the Simplified Employee Pension, or SEP IRA,” says Dooley. “You can contribute up to 25% of W-2 income, or up to 20% of your net earnings from self-employment.”

How to Invest Your First $10,000

Two recommended options come with a $10k investment chunk: either stick to your $5k investment plan or split the $10k and put half into real estate.

Our investing experts:

Logan Allec is a CPA, personal finance expert, and founder of Money Done Right.

Life is an experiment | All this and more: |☠️ Sweary☠️

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