You’re not alone if you hear the word “investing” and think, “Yeah, no thanks.” But hear us out—nothing can ever compare to the compound growth of investing. The best part? You don’t need a fortune to get started. Got an extra $100 sitting in the bank? Put it to work. Your future self will thank you.

Remember: investing is a marathon, not a sprint. You won’t master it overnight, and that’s perfectly okay. Like any skill, the more you practice, the better you’ll get at it. 

In this post, we’ll cover everything you need to know about investing beyond retirement. We even whipped up a checklist so you can start your investing journey with confidence.

👀 4min read

📸: Pinterest

Where to start?

1. Know your numbers

Have extra cash after all your bases are covered? Bills paid? Emergency savings funded? High-interest debt (5% or more) is paid off? You’re on track to retire with a number that feels good for your lifestyle? Okay, you might be ready for more!

2. Know what you’re saving for

House? Car? Income at 50? …why? Investing works best with a longer time horizon. 

If you need the money within the next 5 years, keep it in a high yield savings account (aim for 4%+). It will earn higher interest compared to a traditional savings account (less than 1%). Free money. 

Think: Emergency fund, vacation, house project, down payment etc. This money is easily accessible and there is no significant risk of losing it.

Anything beyond that can be invested for the long haul, because you aren’t going to need to use it to live your life * right now *

Think: IRAs, 529 accounts for your kids, brokerage accounts, real estate [retirement… we know we’re not talking about that, we just need to bring home that this is a type of investing account!!]. There are many investing tools available to the public. A brokerage account is the most common.

These accounts function similar to a retirement account, but have more flexible investment and withdrawal options. You don’t get any tax breaks though – and must be entered with the mindset of, if I lose this, it’s okay.

3. Choose an institution

There are soooo many financial providers to help you get into the investing game. You can choose from major players like Fidelity and JP Morgan, or go for a more local option like your credit union. The bottom line? No matter who you go with, just make sure they’re licensed and legit.

It’s important to think about what kind of investor you want to be. Are you the DIY type who loves taking the wheel, or do you prefer letting someone else handle the heavy lifting? No matter which way you swing, here are a few platforms to help you hit the ground running:

• DIY investment platforms: Robinhood, Fidelity, Charles Schwab
• Managed investment platforms: Betterment, Wealthfront, and Vanguard

4. Choose an investment vehicle

When we say investing we are NOT talking about stock picking. We’re talking about investing in a wide variety of investments that make up your portfolio, in order to limit risk and increase the probability of growth. 

This includes target funds, ETFs, mutual funds, and individual stocks. Words! We know. We’ve broken it down into bite-sized learning so you can pick what’s right for you. Access investing courses and calculators.

Here’s a general guide, from low to high-risk portfolio options:

- Low Risk – Diversified ETF portfolio of stocks and bonds

- Medium Risk – Diversified ETF portfolio of stocks 

- High Risk – Stock picking (aka Amazon, Netflix, Apple)

- Very High Risk – Cryptocurrency 

Think about your risk level, your time horizon, how much you’re going to rely on this money. This will determine what investment vehicle feels right for you.

5. Do your research

Not sure where to start? Marketwatch.com is a great jumping-off point. You’ll get real-time updates on stock prices plus historical data, market trends, and performance metrics that will keep you on top of your game. 

When it comes to investing, being informed is your best move. And… trust your gut.

Not sure if you have enough money to become an investor? Here’s a truth bomb: you don’t need thousands of dollars to get started. In fact, you can invest with as little as $100 to $500. Yup, those extra dollars that you may have left over at the end of the month are more than enough to get you going. 

When do your investments get taxed?

• If you buy an investment you are taxed later (except for 529 accounts)
• If you sell an investment you will be taxed now (capital gain or capital loss)
• If you receive any income from your investment you will be taxed now (dividends, bond yield, distribution).

Closing Thoughts

We’ve said it before, and we’ll say it again: investing takes practice. It might feel a bit scary at first, but stick with it, and soon you’ll be an expert.

Penny Finance is an online financial planning platform for women and the digital generation who don’t yet have wealth. From creating a financial plan to home-buying to having kids and more, we’ll be here to help guide you through that ever-changing life.

Ready to make your money work for you? Become a member or log-in to access Penny’s net worth calculator to help you back into how much you want to invest now, to get where you want to be then.

Just want to get your feet wet? Start with our free 3 minute money quiz. It’ll show you your time until debt-free and your potential future retirement balance.

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• investing