How to start investing if you have $100 or less

By Jonnelle Marte

Are you working toward more than one goal? Through Betterment, investors can create separate accounts for different goals. For example, a customer can have an IRA for retirement savings, a separate account for a home down payment and another for general wealth building. After answering questions about their goals, investors receive guidance on which kind of account to open and how to invest those funds using ETFs. Someone with a far-off goal may be recommended a more aggressive portfolio and people saving for short-term goals might be pointed to more conservative options. But those portfolios don’t shift over time, say from more aggressive to more conservative allocations, as people get closer to needing their money. It will be up to the investor to check back in and make sure that approach still makes sense for them. Investors can start their accounts with small amounts, but those with less than $10,000 in their accounts need to contribute at least $100 a month. Those with larger account balances pay lower fees and aren’t required to set up the recurring deposits. As for taxes, investors who want to withdraw cash from their accounts or change the allocation of their portfolios receive guidance on how the move might affect their tax bill.

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This article originally published August 11th, 2016 on The Washington Post.