Way more people can benefit from investing than actually do.

Here’s our basic advice:

Make sure you have 3-6 months’ worth of expenses in a savings account. This is your ‘emergency fund’ for any unexpected expenses, and is important to have. If you have any very high-interest loans (credit card debt, or loans with higher than 5% interest rate), it probably makes sense to pay those off as soon as you can.

Otherwise, you’re probably ready to start investing! The earlier you start investing - even if it’s a small amount of money - the better. Investing early and often is the easiest way to build wealth.

We can’t answer this definitively without knowing your exact financial situation, but our recommendation is to set up a recurring investment to invest some money every month. Getting in the habit of investing is the best way to build a strong financial future.

A 401(k) is a great place to start investing for retirement, especially if your company matches your contribution. But investing beyond a 401(k) (or 403(b))is important too. Here’s why:

You’ll probably want money from your investments before you’re retired

If you want to use your investment money for buying a house, paying tuition, or planning a wedding - a traditional investing account is best. Retirement accounts like a 401(k) charge a really high penalty for withdrawals before retirement age.

Investment options in a 401(k) are often limited

Investment options within a 401(k) commonly charge high fees and may not allow you to invest in things you may care about - like sustainability.

You may be missing out on other retirement savings

Investing in an IRA in addition to your 401(k) may allow you to save even more for retirement. Feel free to check out the IRS rules on this here.

Note: Vestive does not provide tax advice -- make sure you consult an appopriate tax professional before investing.

An IRA, or Individual Retirement Arrangement, is an investment account with large tax breaks, which makes it a great way to save for retirement. It’s a lot like a 401(k), except you don’t have to get it through your employer.

There are limits to how much you can save in an IRA each year, but it’s often a great option in saving for retirement. Check out the IRS rules on contributing to an IRA here.

Note: Vestive does not provide tax advice -- make sure you consult an appopriate tax professional before investing.

An ETF is a collection of many stocks or bonds, similar to a mutual fund, but with some liquidity and tax advantages. By using ETFs we are able to diversify your investments across lots of companies without having to buy each company individually.

Management fees are what a financial advisor charges to design and manage a portfolio for you. The other fees you should consider when choosing to invest are fund fees.

Vestive's management fee is 0.45%.

Funds that you invest in will charge fees themselves. These fees can vary widely, and some financial advisors try to hide them.

We invest in low-cost funds only, so the fund fees in our portfolios are around 0.20%.