In this series, Tips from the Pros, MONEY taps the collective wisdom of expert financial planners.
The easiest way to start investing your money is to apply through the 401(k) plan your company offers. Your company should automatically take out a portion of your pay and put it directly towards your 401(k) plan. Many companies even match your contribution to your 401(k).
When you’re investing in a 401(k), a good option is a broad-based index fund. The S&P 500 is a list of large stocks from a variety of industries. The advantage to an index fund is that your money is spread out over many different company stocks, rather than just sitting in one stock.
- Victoria Fillet Blueprint Financial Planning