I understand that while in college, or just starting out that initially investing is not a priority. We’ve got to pay rent, buy food, make car payments, etc etc and by the end of the month there is little money or no money left over. That is why I recommend coming up with a budget to make sure you actually have money to save.
For those of you wanting to start a diversified portfolio but complain that you only have $3,000 – don’t sweat it. Stick it into a life-cycle fund (also known as a target retirement fund) in your 401k or Roth IRA and contribute to it on a regular basis. Once you’ve accumulated a lot of money, you can break it up and start buying the funds you really want to complete your preferred asset allocation, or build a fratboy’s lazy portfolio.
Don’t have $3,000 to start a fund? Some mutual fund companies let you start with as little as $100 to get started as long as you promise to contribute monthly.
The sooner you start investing the more aware you will become, and the better educated your investments in the future will be. Don’t let “I don’t have enough money” be a reason to not invest. The opportunity is there, its up to you whether or not you take it.
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Tags: investing, lazy portfolio, lifecycle fund, mutual funds, no money, retirement fund
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