- If you have a 401(k) or another retirement plan at work, it’s very likely the first place you should put your money— especially if your company matches a portion of your contributions.
- A robo-advisor. These services manage your investments for you using computer algorithms and typically costs 0.25% to 0.50% of your account balance per year.
- Target-date mutual funds often hold a mix of stocks and bonds and automatically invest with your estimated retirement year in mind.
- Index funds are like mutual funds on autopilot: Rather than employing a professional manager to build and maintain the fund’s portfolio of investments, index funds track a market index.
- Exchange-traded funds. ETFs operate in similar ways as index funds: The main difference between ETFs and index funds is that rather than carrying a minimum investment, ETFs are traded throughout the day and investors buy them for a share price, which like a stock price, can fluctuate.
- Investment apps like Acorns or Stash.
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