When I started investing, I never thought about where to start. I was more concerned about what to invest in. Where, also known as asset location, was an afterthought.
It turns out my approach was doomed for failure. Even though I qualified for tax savings accounts like a Roth IRA and eventually a 401K, I still invested in a taxable account.
My goal was to make the question of where to begin as simple as possible for the average Gen Y member.
First, there are a few assumptions to go over. This chart is done from the perspective of a typical Gen Y member:
That means:
- Eligible for a Roth IRA
- They plan on making more money in the future
Where to Start Investing Flowchart?
Now that you know where to begin investing, you can begin to search for what to invest in. Lucky for you, I already covered the asset allocation question.
If you have any questions, please list them in the comments.
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