Smart Starter Investments: Our 5 Top Picks for New Wealth Builders
Read this is if you don't know where to start...
Investing is one of the most effective ways to build wealth over time—and generational wealth at that! For new investors, though, it can feel like shooting in the dark with so many options available. Our goal? To make this experience less overwhelming by presenting a few tried-and-true options to get you started on your investing journey.
Index Funds and ETFs
Funds and ETFs are excellent options for investors seeking a safe, steady place to grow their money over time. These investment vehicles offer a low barrier to entry, reduced volatility compared to individual stocks, and the chance to instantly diversify across various companies and industries.
This built-in diversification spreads risk and makes them appealing to new and cautious investors. While funds and ETFs provide reliable growth, higher-risk investments tend to deliver returns at a slower pace. But hey, slow and steady wins the race, right?
Dividend Stocks
Dividend stocks represent direct ownership in a company that regularly shares profits with investors, typically through quarterly or annual dividends. Unlike ETFs and bonds, dividend stocks can provide a reliable income stream and potential for capital appreciation, making them attractive for long-term, income-focused investors.
Building a portfolio that generates meaningful income does require a solid initial investment, with dividend yields usually ranging from 2% to 5%. Reinvesting dividends allows investors to harness the magic of compounding over time, and balancing with ETFs or bonds can add extra stability. After all, who doesn’t like the sound of getting paid just for holding stocks?
Real Estate Investment Trusts (REITs)
REITs, or Real Estate Investment Trusts, are companies that own and operate income-generating properties across commercial, industrial, and residential sectors. Like regular stocks, REITs allow investors to tap into the real estate market without the high capital commitment needed for direct property ownership.
One major perk of REITs is their high-dividend potential since these companies must legally distribute taxable income to shareholders. This makes REITs great for passive income, combining the benefits of real estate with the accessibility of the stock market—all without the hassle of clogged toilets or late-night maintenance calls!
High-Yield Savings Accounts (HYSAs)
This is the safest (and least thrilling) option on the list. HYSAs provide a low-risk way to build wealth by earning higher interest than traditional savings accounts. They can be an excellent choice for short-term goals and offer liquidity and security not always found in other investments we’ve discussed. A HYSA is a smart place to stash emerging funds or for risk-averse investors looking for a no-fuss solution. Think of it as the cozy, reliable friend who’ll always have your back when you need it.
Amazon FBA / E-commerce
It might sound a bit unusual to include e-commerce as an investment option for new investors, but hear us out! There’s a rising trend of investors, tired of the slow growth associated with traditional vehicles, turning to Amazon FBA and ecommerce for its potential to deliver faster returns. With FBA, you can sell products on Amazon while Amazon handles storage, shipping, and customer service—making it a hands-off operation.
With the right guidance, Amazon FBA could be a lower-risk way to generate high returns, especially for those who can spot product trends and carve out niches. In other words, Amazon FBA lets you tap into a massive consumer base, with Amazon doing much of the heavy lifting and you reaping the rewards.
Main Takeaway
Starting with a mix of these investments lets new investors balance risk and reward effectively. While index funds and ETFs provide broad exposure to the stock market, dividend stocks, REITs, and HYSAs offer layers of income and stability. For the risk-averse, HYSAs offer a safe haven for cash, especially for short-term savings. And for investors looking for low-risk, higher returns ecommerce and Amazon FBA are becoming a trend!
Want to discover other ways to build wealth, or even double your income? Subscribe to our newsletter, and start growing your income today!"
Looking for more in-depth info about building wealth on Amazon? Check this out:
Neil’s Guest Appearances: Mastering E-Commerce Entrepreneurship & Branding
Summary of This Episode:
Discover how Neil transformed his blue-collar roots into e-commerce success on Small Business Pivots. From his early days in Oregon to building multiple seven-figure Amazon brands, Neil shares invaluable lessons on product selection, metrics, and planning for an eventual sale. Influenced by his father’s work ethic and entrepreneurial family, Neil partnered up to launch private label brands, scaling to seven figures by 2014 through strategic systems and processes. With insights on business acquisitions, training veterans through Patriot Growth Capital, and using the DISC personality assessment for leadership, Neil reveals his journey from active CEO to creating automated income—all through purposeful branding and emotional connection. Tune in for a story of growth, grit, and guidance for aspiring entrepreneurs.
Book a Free Call With Neil!
Did you know we offer a no-cost, no-pressure discovery call to all our newsletter readers and podcast listeners? Yes! We’re excited to talk about your plans, your goals and how e-commerce can be the vehicle to make your dreams come true!
Step one: click here or the image below to watch our overview video and then schedule a call:
Enjoyed this issue?
Found it educational? Agree or disagree with a thing or two? Awesome! Please like and/or comment below so we can produce more content like this!