Many people, especially newer investors, don’t consider the tax consequences of their investments, which can leave them short of their financial goals. On the other hand, some excellent banks, primarily based online, offer very competitive rates — to the point that they can be considered investment-worthy in many cases. As of October 2025, savings account interest rates in the 4% ballpark are still readily available if you do a little research. They pool investors’ money and use it to accumulate a portfolio of stocks or other investments. A certificate of deposit is a federally insured savings account that offers a fixed interest rate for a defined period of time.

Stocks

When you invest in a money market fund, your money buys a collection of high-quality, short-term government, bank or corporate debt. Once you decide how to invest, you’ll need to choose what to invest in. Every investment carries risk, and it’s important to understand those risks and whether they are aligned with your goals. The most popular investments for those just starting out include stocks, mutual funds, exchange-traded funds and bonds. An ETF is an investable fund, containing many investments, such as stocks or bonds.

Retirement Plans

Smart investments provide additional income, financial security, and the achievement of financial goals. It is achieved through inflation-beating returns and the compounding nature of these investments. Volatile investments such as stocks can make some people very uncomfortable when they decline, which can cause you to sell at the worst possible plinko game time.

Index funds

Robo-advisors largely build their portfolios out of low-cost ETFs and index funds. Because they offer low costs and low or no minimums, robos let you get started quickly. They charge a small fee for portfolio management, generally around 0.25% of your account balance.

How to Invest in Stocks: 5 Steps to Get Started

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Should I invest during a market downturn or wait?

Investing in stock involves risks, including the loss of principal. Buying individual Treasurys is better for investors who know exactly what kind of bond they want, because the risks and reward differ by bond. Money market accounts are great options for those who need to access their money in the near future without any strings attached. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Another difference is that if the company that issued the shares is liquidated, preferred stockholders will have access to the company’s assets before common stockholders.