This is the easiest way for newbies to start investing, financial experts say

Investing can seem daunting, but it doesn’t have to be.

Experts recommend starting with target-date funds (TDFs) for beginners.

TDFs are mutual funds designed for long-term investors who choose a fund based on their expected retirement year.

As you get closer to retirement, TDFs automatically adjust the investment mix, reducing risk by decreasing stock exposure and increasing bonds.

Target-allocation funds are another option for hands-on investors.

These funds maintain a fixed stock-to-bond ratio, so investors may need to reassess their allocation over time.

Global market index funds provide diversification across both U.S. and non-U.S. stocks.

Experts emphasize the importance of starting early and saving consistently.

Consider a workplace retirement plan, such as a 401(k), if available, to take advantage of employer matching contributions.

Individual retirement accounts (IRAs) are another option.

While simplicity is key for novice investors, it’s important to note that TDFs may trigger capital gains taxes in taxable brokerage accounts.

Therefore, consider holding TDFs in tax-advantaged retirement accounts.

Remember, the goal is not to aim for high intelligence but to invest consistently over the long term.

By choosing simple and accessible investment options, even those with limited knowledge can take the first steps towards financial security.