A workplace retirement plan like a 401(k) is often the best starting point for beginner investors, offering automatic paycheck contributions, potential employer matching, and tax benefits. Here are five additional beginner-friendly investment options to consider:

1. Robo-Advisors

• Automated investment management using computer algorithms
• Low fees (0.25% to 0.50% annually)
• Minimal starting requirements
• Handles portfolio management and rebalancing
• Provides educational resources and tools

2. Target-Date Mutual Funds

• Automatically adjusts investments based on retirement year
• Combines stocks and bonds in one investment
• Gradually becomes more conservative as retirement approaches
• Popular in employer retirement plans

3. Index Funds

• Passively tracks market indexes (like S&P 500)
• Lower fees than actively managed funds
• Some options available with no minimum investment
• Provides broad market exposure in one transaction

4. Exchange-Traded Funds (ETFs)

• Similar to index funds but traded like stocks
• Generally low fees
• No minimum investment beyond share price
• Most brokers offer commission-free ETF trading
• Flexible trading throughout the day

5. Investment Apps

• Acorns: Rounds up purchases and invests spare change
• Stash: Teaches portfolio building with ETFs and stocks
• Low minimums to start
• Educational features for beginners
• Automated investing options

These options provide different levels of hands-on involvement, from fully automated to more self-directed approaches. Choose based on your preferred level of involvement, investment goals, and available capital.

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