How to Invest Money
A beginner's guide to building wealth through smart investing. Index funds, tax-advantaged accounts, and proven strategies from the ChooseFI community.
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Investing Articles
776
Podcast Episodes
Core Investment Strategies
Four proven approaches to building long-term wealth.
Index Funds
Low-cost index funds are the cornerstone of the FI investing strategy. Own the entire market for a fraction of the cost of actively managed funds.
A total stock market index fund is the single best investment for most people.
Tax-Advantaged Accounts
401(k), IRA, HSA, and Roth accounts let your money grow tax-free or tax-deferred, dramatically accelerating your wealth building.
Max out tax-advantaged accounts before putting money in taxable brokerage.
Asset Allocation
The right mix of stocks and bonds based on your age, risk tolerance, and timeline. Simple portfolios often outperform complex ones.
A simple 3-fund portfolio covers domestic stocks, international stocks, and bonds.
Real Estate
From house hacking to rental properties, real estate offers income, appreciation, and tax benefits for building wealth.
House hacking can eliminate your largest expense while building equity.
The Power of Compound Growth
See how your investments over time with the magic of compound interest. grow
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Your Investing Roadmap
Five steps to go from beginner to confident investor.
1
Emergency Fund
Before investing, build 3-6 months of living expenses in a high-yield savings account. This safety net prevents you from selling investments during a downturn.
2
Employer Match
Contribute enough to your 401(k) to get the full employer match. This is an immediate 50-100% return on your money -- there is no better guaranteed return anywhere.
3
Tax-Advantaged Accounts
Max out your Roth IRA ($7,000/yr) and HSA ($4,150 individual). These accounts let your money grow completely tax-free, saving you thousands over your investing lifetime.
4
Taxable Brokerage
Once you have maxed your tax-advantaged accounts, open a taxable brokerage account. Stick with the same low-cost index funds. Tax-loss harvesting can minimize your tax bill.
5
Optimize & Automate
Set up automatic contributions, rebalance annually, and resist the urge to tinker. The best investors are the ones who automate and forget. Time in the market beats timing the market.
1
Emergency Fund
Before investing, build 3-6 months of living expenses in a high-yield savings account. This safety net prevents you from selling investments during a downturn.
2
Employer Match
Contribute enough to your 401(k) to get the full employer match. This is an immediate 50-100% return on your money -- there is no better guaranteed return anywhere.
3
Tax-Advantaged Accounts
Max out your Roth IRA ($7,000/yr) and HSA ($4,150 individual). These accounts let your money grow completely tax-free, saving you thousands over your investing lifetime.
4
Taxable Brokerage
Once you have maxed your tax-advantaged accounts, open a taxable brokerage account. Stick with the same low-cost index funds. Tax-loss harvesting can minimize your tax bill.
5
Optimize & Automate
Set up automatic contributions, rebalance annually, and resist the urge to tinker. The best investors are the ones who automate and forget. Time in the market beats timing the market.
Investing Articles
Expert guides on index funds, asset allocation, and building wealth.
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