Individual Stocks. The classic way on investing is still a great option purchasing individual stocks gives you the freedom to customize your investment experience. Individual stocks can be a good option no matter how much money you have to invest.
Exchange-Traded Funds or ETF: ETFs are essentially mutual funds that trade like stocks and that let you invest at a higher risk level without having to pay excess fees.
Index Funds: When you invest in an index fund, you are investing in whatever companies are in that index. Similar to an ETF, index funds are also passively managed, have very limited fees, and are fairly easy to understand; however, index funds tend to be more diverse and can provide exposure to a variety of asset classes.
Dividend Reinvestment Plans or Drip: Also known as DRIPs, these plans are great for beginning investors because they allow you to start with a single stock and avoid paying broker commissions. With a DRIP, investors purchase stock directly from the company and reinvest any dividends automatically by purchasing additional shares.
Certificates of Deposit: One of the lowest-risk and most dependable types of investing is to put your money into a certificate of deposit.
These accounts lock your money up for a period of time, ranging from six months to four years, and charge an early access fee if you need to make a withdrawal before the maturation date.
ETFs can be good for people who do not have a lot of money to invest or who have more time before they need to access the funds, especially when saving for retirement. ETFs are a popular investment option because they are relatively easy to understand and trade.