The single most effective strategy for most people: buy low-cost diversified index funds consistently, in tax-advantaged accounts first, and leave them alone.
The most common mistake: waiting to "understand it better." $1,000 invested at 22 grows to $21,002 at 65; the same at 40 grows to only $6,234.
How to open your first account
Fidelity or Vanguard — no minimums, no commissions, cheapest index funds. Start with Roth IRA if income qualifies ($150,000 single limit 2026).
What to buy
One or two funds is sufficient: total market fund (VTI/FZROX) or a target-date fund for full automation.
Use our Compound Interest Calculator to model this.
Frequently asked questions
How much do I need to start?
As little as $1 with fractional shares.
Roth IRA or 401(k) first?
401(k) to the match first (guaranteed return), then Roth IRA.
What should a beginner buy?
A total market index fund or target-date fund.
Is investing safe in 2026?
Not short-term, but historically reliable over 10+ year horizons.
Invest or pay off student loans?
Above 7% rate, prioritise payoff; below 7%, invest in parallel.