How to Start Investing: Complete Beginner Guide for 2025
Investing is the most powerful way to build wealth over time. Whether you have $100 or $10,000 to start, this guide will teach you everything you need to know.
Why Start Investing Now?
The power of compound interest:
- Start at 25: $2.1 million by age 65 (8% return)
- Start at 35: $930,000 by age 65
- Start at 45: $380,000 by age 65
Types of Investment Accounts
- 401(k): $23,500 limit (2025), employer match = free money
- IRA: $7,000 limit, Traditional or Roth options
- Taxable Brokerage: No limits, pay capital gains taxes
- HSA: Triple tax advantage if eligible
Best Investments for Beginners
1. Index Funds (Recommended)
- S&P 500: VOO, SPY, FXAIX
- Total Market: VTI, FZROX
- International: VXUS
- Bonds: BND
2. ETFs (Exchange Traded Funds)
Trade like stocks, low fees, diversified.
3. Target-Date Funds
Automatically adjusts allocation as you age.
Investment Strategies
- Dollar-Cost Averaging: Invest regularly regardless of market
- Buy and Hold: Long-term investing beats timing
- Diversification: Spread across asset classes
- Asset Allocation: Stocks vs bonds based on age
Best Brokerage Accounts 2025
| Broker | Best For | Minimum |
|---|---|---|
| Fidelity | Overall | $0 |
| Vanguard | Index funds | $0 |
| Charles Schwab | Customer service | $0 |
| Robinhood | Beginners | $0 |
