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2 days ago
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3 Low-Cost Investments Under $100 for Retirees in 2025
Retirees on a fixed income are often on a tight budget, so investing can seem daunting and unattainable. But the truth is there are low-cost options that don't require deep pockets. There's a misconception some believe that investing is only for the wealthy, but those in retirement can invest $100 or less and see a return. Read More: Learn More: You don't need a lot of cash to build wealth, and there are safe bets that don't feel like you're gambling your money away. Here are three ways to invest as a retiree for under $100. Also see five reasons boomers should continue investing in retirement. Treasury bonds, also referred to as T-bonds, are a common way people invest. Essentially, you're lending the U.S. government money. There's typically a 20- to 30-year maturity period where you earn interest throughout, and depending on the type of bond, the interest rate varies. For instance, the interest rate for I bonds changes every six months due to inflation, and according to Danny Ray, founder of PinnacleQuote, it's one of the best ways for retirees to invest. 'Even starting with just $25 to $100 through can begin building interest. You can invest up to $10,000 per year,' he said. It's a smart, strategic move because it's safe due to the fact it's backed by the U.S. government and inflation is taken into consideration with the interest. 'That's a big deal when you're on a fixed income,' Ray said. 'Over time, they can beat savings account rates and keep your cash safe. Above all, they help protect your retirement nest egg from losing value without needing high risk.' Check Out: Index funds are a type of mutual fund or exchange-traded fund (ETF) designed to replicate the performance of a specific market index, such as the S&P 500, and they're a great way to invest for retirees, according to Eric Mangold, CWS, founder of Argosy Wealth Management. 'There are numerous index funds that have no minimum to start to invest,' he said. 'You literally could start with $50.' An index fund can be a great part of a diversified portfolio or a good way to start building a diversified portfolio. 'Investors can also look for no-minimum or low-minimum mutual funds to help round out their portfolio, which can help create a digestible risk profile for those who are retired,' Mangold said. Dividend stocks are shares of publicly traded companies that pay shareholders typically on a quarterly basis. Investing in dividend-paying stocks is a way to generate a consistent income stream during times when the market is rocky, and according to Ray, it is ideal for retirees. 'Above all, these types of stocks allow retirees to earn regular income without selling shares,' he said. 'That can be a big deal when you're trying to stretch your savings.' And there are other benefits too. 'For example, many well established companies like utilities, healthcare firms and consumer staples pay out consistent dividends. Some even increase those payouts over time, helping to keep up with inflation.' Retirees can invest $100 or a few hundred dollars to get started using dividend-focused exchange-traded funds (ETFs) or direct stock purchases through DRIPs (dividend reinvestment plans), which often have low or no fees, per Ray. Overall, dividend stocks can bring a balance of income and long-term value, especially for someone wanting their money to work without dipping into principal. More From GOBankingRates The New Retirement Problem Boomers Are Facing This article originally appeared on 3 Low-Cost Investments Under $100 for Retirees in 2025
Yahoo
01-04-2025
- Business
- Yahoo
The Best $150 You Can Spend To Spring Clean Your Finances
Spring cleaning isn't just for your home. It's also an ideal time to give your finances a fresh start. Just as you tidy up your living space, cleaning up your finances can bring clarity and improved financial health. Whether you're aiming to save money, reduce debt or increase investments, a little investment in the right tools or strategies can make all the difference Read Next: Find Out: Here are some of the best ways to spend your money to spring clean your finances and set yourself up for a brighter financial future. 'Spring is the perfect time to clean up not just your closet, but your finances too,' said Danny Ray, finance expert and founder of PinnacleQuote. 'The best money you can spend? In my experience, it's hiring a trusted financial professional to review your full financial picture, not just your investments, but your insurance, debt, taxes and estate planning.' He always recommends putting a few hundred dollars toward a one-time session with a Certified Financial Planner (CFP) if you've never had one. According to SmartAsset, hourly fees for financial advisors can be as low as $120. 'Above all, this gives you a roadmap. You wouldn't drive cross-country without GPS, why wing your financial future?' he said. Learn More: Education is key to improving your financial literacy, and you can invest in an online personal finance course or workshop to help you understand budgeting, investing or even tax strategies. Websites like Udemy, Skillshare and Coursera offer finance courses that range from beginner to advanced, and many are priced under $150. This basic personal finance course on Udemy, for example, regularly costs $69.99, while this course on stock investing from Udemy regularly costs $149.99. A good tax filing software like TurboTax, H&R Block or TaxSlayer can help you file your taxes correctly and potentially maximize your refund. These services generally charge between $50 and $150, depending on the level of service or assistance you need (e.g., self-employed versus standard filing). TurboTax allows you to start your taxes for free and pay only when you file. Costs for that can be as high as $199. H&R Block's pricing ranges from $50 to $109, depending on the level of service you'll need. TaxSlayer also has a free option, and its paid options can cost as high as $67.95. On the other hand, you could also hire a tax professional for a one-time consultation. If you're looking to start investing and have some basic understanding of the stock market, investing in low-cost index funds or exchange-traded funds (ETFs) can be a great choice this spring. With a $150 initial investment, you can start investing in diversified assets through a brokerage platform like Vanguard, Fidelity or Robinhood, many of which allow you to buy fractional shares. More From GOBankingRates Trump Tells Sean Hannity Why He Took Away One of America's Favorite Tax Cuts The New Retirement Problem Boomers Are Facing Salary Needed To Achieve the American Dream in the 50 Largest Cities 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on The Best $150 You Can Spend To Spring Clean Your Finances
