--- title: Investing for Beginners description: Investing takes a ton of research for anyone, but investing for beginners can feel very overwhelming. Learn some tips on how to get started. image: https://www.4tfg.com/hubfs/Blog/Investing-for-Beginners.jpg --- [![4thought\_footer-logo.png](https://www.4tfg.com/hs-fs/hubfs/4thought_footer-logo.png?width=335&height=101&name=4thought_footer-logo.png "4thought_footer-logo.png")](https://www.4tfg.com/) - [![4Thought Financial Group](https://www.4tfg.com/hubfs/4thought_footer-logo.png)](https://www.4tfg.com/) [![4Thought Financial Group Compass](https://www.4tfg.com/hubfs/4Though-Compass.png)](https://www.4tfg.com/) - [About 4Thought](https://www.4tfg.com/investment-methodology) - [Our Investment Methodology](https://www.4tfg.com/investment-methodology) - [Management Team](https://www.4tfg.com/management) - [In the Media](https://www.4tfg.com/media) - [Contact](https://www.4tfg.com/contact) - [Services](https://www.4tfg.com/investing) - [Private Individual Investing](https://www.4tfg.com/investing) - [SMAs for RIA /Institutional /Family Office](https://www.4tfg.com/financial-advisors-and-institutions) - [Services for CPAs](https://www.4tfg.com/cpa-investing-services) - [Private Wealth Management](https://www.4tfg.com/wealth-management) - [Retirement Plan Services](https://www.4tfg.com/retirement-plan-services) - [Resources](https://www.4tfg.com/resources) - [Financial News](https://www.4tfg.com/resources) - [Portfolio Review](https://www.4tfg.com/portfolio-review) - [Investment Performance](https://www.4tfg.com/performance-requests) - [CPA Continuing Education](https://www.4tfg.com/cpe-continuing-education) - [FAQs](https://www.4tfg.com/faq) - [FAQs](https://www.4tfg.com/faq) - [Contact](https://www.4tfg.com/contact) - Log In - [Goldman Sachs Accounts](https://custodysolutions.gs.com/client-app) - [Wealth Management](https://wealth.emaplan.com/ema/SignIn?ema) - [Consolidated Reporting](https://client.myadvisorlink.com/auth/users/webportal/4tfg) - [Retirement Plan Services](https://www.4tfg.com/rps-login) - - Log In - [Goldman Sachs Accounts](https://custodysolutions.gs.com/client-app) - [Wealth Management](https://wealth.emaplan.com/ema/SignIn?ema) - [Consolidated Reporting](https://client.myadvisorlink.com/auth/users/webportal/4tfg) - [Retirement Plan Services](https://www.4tfg.com/rps-login) ## 4Thought Investing Resources # 4Thought Investment Resources [Financial News](https://www.4tfg.com/resources/) [Investment Strategy](https://www.4tfg.com/resources/topic/investment-strategy) [Personal Finance](https://www.4tfg.com/resources/topic/personal-investing) [Business Finance](https://www.4tfg.com/resources/topic/business-finance) [For Professionals](https://www.4tfg.com/resources/topic/financial-professionals)[Compass and Crosshairs](https://www.4tfg.com/resources/topic/compass-and-crosshairs) SUBSCRIBE Subscribe for free tips and articles to help you lead a smarter financial life. [Financial News](https://www.4tfg.com/resources) ,[Investment Strategy](https://www.4tfg.com/resources/topic/investment-strategy) # Investing for Beginners Investing takes a ton of research for anyone, but investing for beginners can feel very overwhelming. Learn some tips on how to get started. \[fa icon="calendar"\] Jun 29, 2017, 3:27:43 PM by [4Thought Financial](https://www.4tfg.com/resources/author/4thought-financial) ![Investing for Beginners](https://www.4tfg.com/hubfs/Blog/Investing-for-Beginners.jpg) Info Sheet - PDF Download [![](https://www.4tfg.com/hubfs/Collateral/4Thought-Firm-Overview.png "Investing Online with 4thought")](https://www.4tfg.com/hubfs/Collateral/4Thought-Firm-Overview.pdf) ### **4Thought Financial Group Firm Overview** "Protecting the long-term financial health and wellbeing of each unique client is our focus and our passion. Drawing on decades of specialized training and experience, let our insight and commitment be a compass and a guide." [View the PDF](https://www.4tfg.com/hubfs/Collateral/4Thought-Firm-Overview.pdf) [Save the PDF](https://www.4tfg.com/hubfs/Collateral/4Thought-Firm-Overview.pdf.zip) [*Learn more about investing with 4Thought Financial Group*](https://www.4tfg.com) So, you want to invest, but you don't know where to start. It's a common issue for beginners, but it's easily solved with a little guidance and education. Once you know the basics, you can start cautiously investing, learning about more specific investments and techniques as you go. Here's a guide to investing for beginners, including some of the most popular first-time investment strategies. ## Who Is an Investor? An investor is different from a saver or a gambler. A saver simply hoards money because they're worried about losing it. The problem here is that savers aren't using their money, which is a terrible long-term strategy. Gamblers are the opposite of savers. They use their money to play high-risk games, hoping for a payoff that isn't statistically likely to happen. This technique is arguably worse than saving because most gamblers end up broke. Investors are the happy medium between these two extremes. Investors use their money to gain more money in the form of profits. Investments are usually much lower-risk than gambling, especially if you know what you're doing. Note: If you're randomly buying stock without significant research, you're closer to a gambler than an investor.   ## How to Make Your First Investment You can make your first investment however you like. You can buy stock. You can contribute capital for your friend's startup company. You can purchase real estate. However, most financial advisors recommend starting slowly with one of the most widely used investments around: mutual funds. ### Why Mutual Funds? [Mutual funds](https://www.fidelity.com/learning-center/investment-products/mutual-funds/what-are-mutual-funds) aren't necessarily a "flashy" type of investment, but they may be more stable than simply buying individual stocks. With a mutual fund, you're actually pooling your money with other investors. Together, you all own a portfolio of various stocks, bonds and other securities. You'll own a share (or shares) of the fund, and the price of the share is determined by the value of the securities as well as the number of shareholders. Financial advisors often recommend mutual funds for the following reasons: 1. **They're managed by professionals.** At this point, you don't know much about investing, so you need guidance. Mutual funds have that guidance built-in. The portfolio manager makes the day-to-day decisions for all the investors so you don't have to worry about your lack of investment knowledge. 2. **They're diversified.** If you've heard anything about investing, it's probably "diversification." The biggest part of investing is diversifying your portfolio, which means investing in several different types of securities. Mutual funds are already diversified (at least by the number of securities if not the type), so some of the legwork is done for you. 3. **They're easy.** Mutual funds are easy, and not just because they're set up and managed for you. They're also readily marketable and liquid, and you can sell them quickly should the need arise. ### Where to Invest Because mutual funds are so widely available, you have a few options for your purchase. 1. **Direct.** You can buy mutual funds directly from most mutual fund companies. This may help you avoid fees charged by other financial intermediaries. You can also purchase stock directly from certain companies through Dividend Reinvestment Programs (DRIPs). 2. **Stock brokers.** You can use a traditional stock broker who works on a commission basis and may be able to present you with a few options, but it's often much cheaper to use an online stock broker if you’d prefer to do the selecting yourself. 3. **Financial advisors and planners.** People with large sums to invest usually use a [financial advisor](https://www.4tfg.com/investing), but there are benefits for small investors, too. You'll get personal financial advice and service, though you'll pay a premium for it, in the form of an investment advisory fee or financial planning fee (in the case of fee-based or fee-only advisors). 4. **Apps.** Yes, just like everything else, there are apps for investing. These usually don't allow a lot of input from you, but they're easy and simple to use. They often simply help you in the decision-making process, but do not necessarily help you with implementation (either functionally or in term of expenses). 5. **Robo-Advisors.** These sites combine [advising and/or portfolio management with brokerage](https://www.4tfg.com/resources/human-vs.-robot-winner-take-all). You simply answer a few questions and the site chooses your allocations for you, and the money is managed for you on an ongoing basis for a (relatively) low investment advisory fee.   ## What About Retirement? Your retirement account is generally your first investment. If you're offered a retirement account with company match through your employer, that's the best place to start. After that, an IRA is your best option, though there's a choice to make here, too: 1. **Traditional IRA:** Usually, you don't pay tax on your contributions to a traditional IRA. Instead, they're deferred until you withdraw the money later in life. You can potentially get a tax deduction on the contributions plus deferral of taxes on the growth that occurs in the future. This option is best if you assume you'll have a lower tax rate when you're retired than you do now. 2. **Roth IRA:** With a Roth IRA, you contribute after-tax dollars now, but you won't pay taxes on your withdrawals later (or on the growth in the interim). This option is best if you assume you'll have a higher tax rate when you're retired than you do now. 3. **Rollover IRA:** This term is used when you roll money from another type of retirement account into an IRA account. If you leave your current employer, you can roll money from your 401k to an IRA account without paying taxes (assuming the transaction is executed correctly). For tax purposes, most financial advisors recommend a Roth IRA for your initial retirement account. For the majority of beginner investors, their tax rate will be higher in retirement than it is now, so it's best to pay lower taxes now than higher ones later. According to [Kiplinger](http://www.kiplinger.com/article/retirement/T046-C006-S001-why-you-need-a-roth-ira.html), a Roth IRA is "one of the smartest moves a young person can make."   ## Final Thoughts Obviously, there's a lot more you can learn about investing, specifically when it comes to individual investments like stocks or bonds, other alternatives such as exchange traded funds. But most importantly, be sure to seek information on investor behavior do’s and don’ts, which will ultimately be the biggest determinants of your outcome. Consider seeking the aid of financial professionals for guidance in these areas. ## Was this article helpful to you? ### Subscribe to our newsletter for free tips and articles to help you lead a smarter financial life. ### Related posts [![Bear, Bull, Wolf & Eagle: The Markets Reimagined & Redefined](https://www.4tfg.com/hubfs/Bear_Bull_Wolf_Eagle-The_Markets_Redefined.jpg)](https://www.4tfg.com/resources/bear-bull-wolf-eagle-markets-reimagined-redefined) [![Understanding Risk in Investing - Part 3 - Investment Methods and Risk Premiums](https://www.4tfg.com/hubfs/Understanding%20Risk%20in%20Investing%20-%20Part%203%20-%20Investment%20Methods%20and%20Risk%20Premiums%2010-13-20%20-%20Thumbnail.jpg)](https://www.4tfg.com/resources/understanding-risk-in-investing-part3-0-1-0) [![Understanding Risk in Investing - Part 2 - Modern Portfolio Theory Quantitative Tools and Statistics](https://www.4tfg.com/hubfs/BaseCamp_Archive/attachments/332823384-all-with-graphic.png)](https://www.4tfg.com/resources/understanding-risk-in-investing-part2-0-1) ## Leave a Comment ### Search 4tfg.com This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. ### **What Type of Investor Are You?** You have unique investment goals. We have a unique investment methodology. Take our questionnaire to see how our Multi-Method Investing® approach can help you better meet your financial goals. [Launch Questionnaire](https://4tfg.typeform.com/to/ZRF2dJ) ### Resource Topics [Financial News](https://www.4tfg.com/resources) [Investment Strategy](https://www.4tfg.com/resources/topic/investment-strategy) [Personal Finance](https://www.4tfg.com/resources/topic/personal-investing)[Business Finance](https://www.4tfg.com/resources/topic/business-finance) [For Professionals](https://www.4tfg.com/resources/topic/financial-professionals) [Frequently Asked Questions](https://www.4tfg.com/faq/) [Compass and Crosshairs](https://www.4tfg.com/resources/topic/compass-and-crosshairs) ### Recent Articles [--- ![Bear-Bull-Wolf-Eagle-Market-Icons](https://www.4tfg.com/hs-fs/hubfs/Bear-Bull-Wolf-Eagle-Market-Icons.png?width=600&name=Bear-Bull-Wolf-Eagle-Market-Icons.png)](https://www.4tfg.com/bear-bull-wolf-eagle-markets) - [Call 1-516-300-1617](tel:+15163001617) - [Email info@4tfg.com](mailto:info@4tfg.com) - ABOUT 4THOUGHT [Investment Philosophy](https://www.4tfg.com/investment-methodology) [Management Team](https://www.4tfg.com/management) [In the Media](https://www.4tfg.com/media) [Sign Up](https://www.4tfg.com/sign-up)[Contact](https://www.4tfg.com/contact) SERVICES [Private Individual Investing](https://www.4tfg.com/investing) [SMAs for RIA /Institutional /Family Office](https://www.4tfg.com/financial-advisors-and-institutions) [Services for CPAs](https://www.4tfg.com/cpa-investing-services) [Private Wealth Management](https://www.4tfg.com/wealth-management) [Retirement Plan Services](https://www.4tfg.com/retirement-plan-services) RESOURCES [Financial News](https://www.4tfg.com/resources) [Investment Performance](https://www.4tfg.com/performance-requests) [CPA Continuing Education](https://www.4tfg.com/CPE-continuing-education) About 4Thought [Investment Philosophy](https://www.4tfg.com/investment-methodology) [Management Team](https://www.4tfg.com/management) [In the Media](https://www.4tfg.com/media)[Contact](https://www.4tfg.com/contact) Services [Private Individual Investing](https://www.4tfg.com/investing) [SMAs for RIA /Institutional /Family Office](https://www.4tfg.com/financial-advisors-and-institutions) [Services for CPAs](https://www.4tfg.com/cpa-investing-services) [Retirement Plan Services](https://www.4tfg.com/retirement-plan-services) [Private Wealth Management](https://www.4tfg.com/wealth-management) Resources [Financial News](https://www.4tfg.com/resources/) [Investment Performance](https://www.4tfg.com/investment-performance-services) [CPA Continuing Education](https://www.4tfg.com/CPE-continuing-education) [Investing Questionnaire](https://4tfg.typeform.com/to/ZRF2dJ) ![4Thought Financial Group](https://www.4tfg.com/hubfs/4thought_footer-logo.png "4Thought Financial Group") The information provided by 4Thought is educational only and is not to be interpreted or construed as investment or tax advice. © 2026 4Thought Financial Group Inc. Investment Advisory Services are offered through 4Thought Financial Group Inc., an SEC Registered Investment Adviser. Registration does not imply a certain level of skill or training. The content presented here is for informational purposes only and does not constitute a complete description of our investment advisory services or performance. This website is in no way a solicitation or offer to sell securities or investment advisory services except, where applicable, in states where we are registered (or notice filed) or where an exemption or exclusion from such registration exists. Information throughout this site, including, but not limited to, stock quotes, charts, articles or any other statement or statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance. Neither we nor our information providers shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission thereof to the user. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY LINKED WEBSITE. [Form CRS, Firm Brochure (ADV Part2), Privacy Policy Notice, and Wrap Fee Program Brochure](https://www.4tfg.com/hubfs/Firm_Brochure_ADV_Pt2-Privacy_Policy-Wrap_Fee_Program_Brochure.pdf) [Disclosure](https://www.4tfg.com/disclosure) [BrokerCheck](http://brokercheck.finra.org/) Any opinions presented here are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors. \*4Thought Financial Group claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. The GIPS firm definition excludes any third party asset management programs over which 4Thought maintains oversight advisory agreements on behalf of its clients, any arrangements under which 4Thought provides recommendations for client self-implementation, and any assets under advisory but not under direct management (in which 4Thought provides allocation changes or trading signals to third party firms but does not take discretion over the trading of client accounts). GIPS-compliant performance information for 4Thought's strategies may be obtained by email at [info@4tfg.com](mailto:info@4tfg.com); on the 4Thought website at [www.4tfg.com/performance-requests](https://www.4tfg.com/performance-requests); or by phone at (516) 300-1617. Disclaimer [Form CRS, Firm Brochure (ADV Part2), Privacy Policy Notice, and Wrap Fee Program Brochure](https://www.4tfg.com/hubfs/Firm_Brochure_ADV_Pt2-Privacy_Policy-Wrap_Fee_Program_Brochure.pdf) [Disclosure](https://www.4tfg.com/disclosure) [BrokerCheck](http://brokercheck.finra.org/) Investment Advisory Services are offered through 4Thought Financial Group Inc., an SEC Registered Investment Adviser. Registration does not imply a certain level of skill or training. The content presented here is for informational purposes only and does not constitute a complete description of our investment advisory services or performance. This website is in no way a solicitation or offer to sell securities or investment advisory services except, where applicable, in states where we are registered (or notice filed) or where an exemption or exclusion from such registration exists. Information throughout this site, including, but not limited to, stock quotes, charts, articles or any other statement or statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance. Neither we nor our information providers shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission thereof to the user. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY LINKED WEBSITE. Any opinions presented here are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors. \*4Thought Financial Group claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. The GIPS firm definition excludes any third party asset management programs over which 4Thought maintains oversight advisory agreements on behalf of its clients, any arrangements under which 4Thought provides recommendations for client self-implementation, and any assets under advisory but not under direct management (in which 4Thought provides allocation changes or trading signals to third party firms but does not take discretion over the trading of client accounts). GIPS-compliant performance information for 4Thought's strategies may be obtained by email at [info@4tfg.com](mailto:info@4tfg.com); on the 4Thought website at [https://www.4tfg.com/performance-requests](https://www.4tfg.com/performance-requests); or by phone at (516) 300-1617. ```json { "@context" : "http://schema.org", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "", "addressLocality" : "Syosset", "addressRegion" : "New York", "postalCode" : "11791", "streetAddress" : "6851 Jericho Turnpike Suite 120" }, "alternateName" : "4 Thought Financial Group", "areaServed" : { "@type" : "GeoCircle", "geoMidpoint" : { "latitude" : "+40.8100713", "longitude" : "-73.5172286" }, "geoRadius" : "150 km" }, "description" : "Investing takes a ton of research for anyone, but investing for beginners can feel very overwhelming. Learn some tips on how to get started.", "email" : "[GDelorenzo@ClearHorizonGroup.Com, info@4tfg.com, no-reply@4tfg.com]", "image" : "https://www.4tfg.com/hubfs/4Thought-Financial-Group-OG.jpg", "logo" : "http://cdn2.hubspot.net/hubfs/2201374/4thought_header-logo.png", "naics" : "523920", "name" : "4Thought Financial Group", "sameAs" : [ "https://www.facebook.com/4ThoughtFinancialGroup", "https://www.linkedin.com/company/3043702", "https://www.youtube.com/channel/UCEHRK-25mAwfTlNzdvFSN3g", "http://investment-advisors.credio.com/l/39493/4thought-Financial-Group-Inc" ], "telephone" : "516-300-1617", "url" : "http://www.4tfg.com" } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Organization", "name" : "4Thought Financial" }, "dateModified" : "June 29, 2017, 7:43:04 PM", "datePublished" : "2017-06-29 19:27:43", "description" : "Investing takes a ton of research for anyone, but investing for beginners can feel very overwhelming. Learn some tips on how to get started.", "headline" : "Investing for Beginners", "image" : { "@type" : "ImageObject", "url" : "https://www.4tfg.com/hubfs/Blog/Investing-for-Beginners.jpg" }, "mainEntityOfPage" : { "@id" : "https://www.4tfg.com/resources/investing-for-beginners", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "http://cdn2.hubspot.net/hubfs/2201374/4thought_header-logo.png" }, "name" : "4Thought Financial Group" } } ```