One of the most common questions I get from my friends is how to start investing. Getting started is pretty simple; you don’t need to be a financial expert or have a deep understanding of the stock market. Follow my guide, stop letting your money rot in a checking/savings account, and put it somewhere where you can actually make money.
Step 1: Get a Broker
If you’re brand new to investing, you need a brokerage account to buy and sell stocks. I use Fidelity for my long-term portfolio and Robinhood for my active trading portfolio. For most beginners, I usually recommend Robinhood because it, by far, has the cleanest, most user-friendly interface (and it’s not even close). Here’s how to get started:
- Go to Robinhood or Fidelity.
- Sign up for an account.
- Deposit however much money you’re comfortable investing.
Step 2: Buy These ETFs
Once your money has settled, purchase the following Exchange-Traded Funds (ETFs) in the distribution listed below. These are simple, low-cost investments that are easy to maintain and provide strong long-term returns.
| ETF | Allocation | Description |
|---|---|---|
| VOO | 75% | Tracks the S&P 500 (largest U.S. companies). Generally goes up over time. Pays a small dividend. |
| BND | 12.5% | A bond ETF offering 4-5% annual returns. Diversifies your portfolio and balances stock market volatility. |
| SGOV | 12.5% | A short-term Treasury ETF closely tied to Federal Reserve rates. Very safe with yields currently around 5%. |
Step 3: Keep Investing
Every month, set aside whatever amount you’re comfortable investing and reinvest it into the same three ETFs using the same distribution:
- VOO (75%)
- BND (12.5%)
- SGOV (12.5%)
The investment strategy you’re using is dollar-cost averaging (DCA). This means that you’re investing a fixed amount of money at regular intervals regardless of the market’s performance. Whether the market goes up or down, you’re buying more shares when prices are lower and fewer shares when prices are higher. Over time, this approach helps reduce the impact of short-term market fluctuations on your overall portfolio.
Projected Portfolio Growth
This “Lazy Man’s Portfolio” is designed to balance growth, stability, and safety. Let’s assume you invest $15,000 upfront and let it grow for 20 years, reinvesting all dividends.
| ETF | Initial Investment | Annual Return | Value in 20 Years |
| VOO | $11,250 | 10% | $73,750 |
| BND | $1,875 | 4% | $4,091 |
| SGOV | $1,875 | 5% | $4,979 |
| Total | $15,000 | ~8.2% | $82,820 |
If you just left this money in the portfolio and didn’t touch it for 20 years, it could potentially grow five-fold.
That’s my quick intro to a Lazy Man’s Portfolio. It’s simple, effective, and takes very little time to maintain. Over the long term, this strategy will grow your wealth steadily without requiring you to pick individual stocks or time the market.
Once you get a portfolio set up and get your feet a little wet, we can start talking about picking individual stocks next.