One concern for new investors is knowing where to start when you don’t have much to invest. When I first wrote about investing, I started out with $1,000 or less. I’ve found some more options for those who invest $500 or even less.
Invest with $500 (or Less)
Some index funds require that you have a minimum. Even if you are limited on your budget, there are ways you can go ahead and invest. I went ahead and searched for some index fund for you to start off with.
Here are 5 index funds that have a minimum requirement of $1,000 or less to open:
- Homestead Stock Index (HSTIX) – $500 minimum
- Vanguard STAR Fund (VGSTX) – $1,000 minimum
- T. Rowe Price International Equity Index Fund (PIEQX) – $1,000 minimum
- T. Rowe Price Equity Index 500 Fund (PREIX) – $1,000 minimum
- T. Rowe Price Spectrum Growth (PRSGX)
Here are 5 index funds that have a minimum requirement of $250 or less to open:
- Schwab S&P 500 Index Fund (SWPPX) – $100 minimum
- Schwab Total Stock Market Index Fund (SWTSX) – $100 minimum
- Schwab 1000 Index Fund®(SNXFX)
- Schwab Small-Cap Index Fund®(SWSSX)
- Schwab International Index Fund®(SWISX)
This isn’t a comprehensive list of investments, but it’s enough to get your started with your retirement account. You just have to look over the funds and see if it’s right for you and your investment goals.
Where to Invest?
If you’re looking for companies to invest in, here are a few suggestions:
- Vanguard: One of the most trusted names in investing
- TD Ameritrade: Open and fund an IRA today and get up to $600.
- E*Trade: Trade Free for 60 Days
- Betterment: Easy to set up and a very affordable option
You may also want to check with your local bank or credit union to compare fees and expenses.
Thoughts on Starting to Invest
I’d like to hear your take on investing and where to begin. How did you get started? How do you keep on target for contributions?