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7 Investment Strategies for Short-Term & Long-Term Investing
7 Investment Strategies for Short-Term & Long-Term Investing

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# 7 Investment Strategies: Short-Term and Long-Term Investing

While you can invest in literally anything, stocks, bonds, and real estate present the best investment strategies.

![Grant Sabatier's bio image](https://millennialmoney.com/wp-content/themes/millmoney-theme/images/authors/1-sm.jpg)[Grant Sabatier](https://millennialmoney.com/author/grant/)

17 min read

Last updated January 20, 2023

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The two most frequent questions I get from Millennial Money readers are “what do you invest in?” and “what are the best investment strategies?” I’ve received hundreds of those emails in the past month alone.

Your investment strategy is the approach that drives your investing choices.

The best investing strategies are ones where you can maximize your return while minimizing your risk.

There are several strategies out there. In this guide, I’ll walk you through some of the top approaches to choosing, buying, and selling your assets to reach your financial goals.

In This Article

## Top 7 Investment Strategies

Here’s a breakdown of seven of the most popular investing strategies you can use.  Which one is best for you depends on your financial goals, risk tolerance, and timeline.

1. [Dollar-Cost Averaging](#dollar-cost-averaging)
2. [Buy and Hold](#buy-and-hold)
3. [Index Investing](#index-investing)
4. [Active Investing](#active-investing)
5. [Growth Investing](#growth-investing)
6. [Value Investing](#value-investing)
7. [Income Investing](#income-investing)

[https://www.youtube.com/embed/75klRvLQHBU](https://www.youtube.com/embed/75klRvLQHBU?rel=0)

### 1\. Dollar-Cost Averaging

Dollar-cost averaging is a simple trading strategy where you contribute a certain amount of money to your investments at set intervals of time.

That could mean investing $100 a week, or $750 a month—the timing and dollar amount are completely up to you and depend on your goals and budget.

You can easily combine this strategy with other ones on the list. One of the biggest advantages of dollar cost averaging is that it eliminates the stress of worrying about market timing. Instead of monitoring the stock market and trying to buy at the right time, you’re investing routinely regardless of prices.

While your investment might buy you fewer shares one month when prices are high, it’ll get you more shares when prices decline. Over time, this strategy can level out your average purchase price, enhance your portfolio, and make you a more disciplined investor.

### 2\. Buy and Hold

The buy-and-hold strategy is a tried and true tactic, and one of Warren Buffet’s favorite investment principles. It’s pretty self-explanatory—you purchase an investment and hold it for the long haul.

To be successful with this approach, you need to choose investments that are anticipated to perform well for years to come. So it’s important to do plenty of upfront research and project the long-term growth potential of any stock or other security you’re considering investing in.

When the market drops off, it can be really tempting to sell. As tough as it might be, you need to hold on to your stocks regardless of short-term market fluctuations for this strategy to work. Buy and hold is best fit for less active investors who are comfortable with a “set it and forget it” approach.

### 3\. Index Investing

With index investing, you invest in index funds designed to mirror the returns of a benchmark index like the S&P 500. Index funds can hold hundreds of securities, helping to diversify your investment portfolio and lower your risk.

You can invest in an indexed mutual fund or ETF (exchange-traded fund). Some index funds focus on the entire market, while others hone in on one sector, industry, or type of company.

Since there are fewer trades taking place, index ETFs and mutual funds tend to have fewer taxable capital gains than funds that are actively managed.

If you’re looking to beat the market, index funds aren’t the best vehicle for you. You’d be better off with an actively managed fund with hand-picked stocks. But if you’re a long-term investor looking to match market returns, index investing is a solid strategy.

### 4\. Active Investing

On the opposite end of the spectrum of buy and hold and index investing, you have active investing. Unlike passive investing, which is focused on long-term growth, active investors are usually looking for short-term gains.

Rather than just matching an index, active investors try to beat its returns. Instead of avoiding making trades based on the volatility of the market, this investing strategy leans into it to make impactful short-term profits.

To succeed at active investing, active investors mostly rely on technical analysis, factoring in past performance data to inform their trades. Professionals might also factor in fundamental analysis, looking beyond price data to other economic factors like a company’s financial statements.

You can actively invest for yourself, use an advisor, or invest in actively managed funds.

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### 5\. Growth Investing

A growth investor’s main agenda is to increase their profits, and fast. To do that, growth investors usually hone in on growth stocks.

These are up-and-coming companies that are growing their revenue at a faster-than-average pace. Think of companies that offer innovative products and services that are hard for competitors to match. The technology sector is a great place for growth investing.

You can think of growth investing as offensive investing—rather than defending your earnings and steadily growing passive income, [you’re actively trying to score high returns](https://millennialmoney.com/investments-with-high-returns/) by investing in emerging markets.

While they sometimes come with a higher price tag than other stocks and investing in emerging companies is a high-risk endeavor, the growth potential is worth it for a lot of investors.

### 6\. Value Investing

Opposite to growth investing, value investing is all about finding a bargain. More specifically, value investors buy stocks they think are being underestimated, ones that have more long-term earning potential than the market gives them credit for.

It’s like buying a new phone when it’s on sale. While the price might drop from time to time, it doesn’t change the intrinsic value of what you’re getting.

Value investors watch the market closely and jump on stocks from historically dependable and profitable companies when their stock prices drop for rational reasons, like a flop of a new product, that they think the company can easily recover from.

You can use tools like the price/earnings ratio to identify value stocks. And if you want to invest more passively, you can invest in value funds and leave the research to the pros.

### 7\. Income Investing

Income investing is a strategy that focuses on producing a regular stream of passive income from your investments. This can come in several forms, from dividends to bond yields.

A lot of people automatically think of retirement when income investing is discussed, but you can invest to earn extra income at any age.

These investments could also generate capital gains if they increase in value, so you could make even more money if you sell them.

Here are a few assets that you can use to earn income through investing:

- Dividend stocks
- Dividend ETFs
- REIT (real estate investment trusts) dividends
- Money Market Accounts (MMAs)
- Bonds
- CDs

When it comes to [investing in stocks](https://millennialmoney.com/how-to-invest-in-stocks/), income investing poses less risk than some of the other strategies on this list; however, the market always fluctuates. Just keep in mind that income can vary from time to time, and dividends aren’t guaranteed. And fixed income products like bonds and CDs have moderate returns.

## Factors to Consider in Your Investment Strategy

Here are a few key factors you need to keep in mind as you build out your own investment strategy:

### Risk

No matter what investing strategy you choose, there’s going to be some risk involved. But those higher-risk options have the potential to produce some really high rewards.

It’s important to figure out what your risk tolerance is as an investor and invest accordingly. As you consider a new investment, think about how much risk, and potential for reward, you’re taking on, and decide whether you’re comfortable with it.

### Investment Management

You also need to decide whether you want to manage your own investments, get professional help, or take a hybrid approach.

Here’s a look at your options:

- **DIY:** With self-directed investing, you can actively choose your investments. manage your portfolio, and cut down on fees. The [best investment apps](https://millennialmoney.com/best-investment-apps/) provide a ton of data and research tools to help you make informed investment decisions.
- **Robo-advisor:** Robo-advisors provide automated portfolio management, using an algorithm to manage your investments and keep you on track for your investment objectives for low or no management fees.
- **Financial advisor:** Financial advisors can provide hands-on advice and actively manage your portfolio. They’ll also help with other financial subjects, like estate planning, taxes, and retirement, for a fee.

Which type of management is right for you depends on your investment style, level of expertise, and preferences.

### Timeline

Your investing timeline is one of the biggest considerations to factor into your investment plan.

Whether you’re investing for short-term goals or you’re in it for the long haul, here are a few recommendations.

#### Short-Term Investment Strategies (1-5 year horizon)

For short-term investing, I recommend you keep your money in a **bond fund** like the Vanguard Total Bond Market Index Fund or a **Certificate of Deposit** (CD) at your local bank.

These two options are definitely better than keeping your money in a traditional savings account at a 0.1% interest rate, where you are actually going to lose money due to inflation.

Another option if you’re willing to take on a bit more risk is a balanced index fund like the **Vanguard Wellesley Income Fund**, which invests in approximately 60% bonds and 40% stocks, so you can generate a higher return (with slightly higher risk).

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I think a lot of people sit on too much cash, but that’s a personal decision and for a lot of people; it helps them sleep at night. I sleep better knowing my money is making money, and even if I lose money in the short term, over time I will come out way ahead!

I’m not sure that I’ll buy anything large in the short term, so I’m keeping my investments focused on a longer-term time horizon. A lot of my [early retirement calculations](https://millennialmoney.com/early-retirement-calculator/) are based on mostly staying invested in equities and expecting a 6% compounded annual return over the next 30 years.

But, if you do want to save for a vacation, home, or car, or make an investment in the next 1 to 5 years, I don’t recommend putting your money into 90%+ equities like me.

That’s likely too risky since stocks can go up and down wildly over any short-term period. The last thing you want is for your investment to decline 20% right before you find the perfect house or are ready to take that vacation.

#### Long-Term Investment Strategies (10+ year horizon)

I manage 100% of my long-term investments myself and still follow my daily investing habits. I don’t work with any type of financial advisor or firm. It’s actually pretty easy to do yourself with a bit of reading and emotional bulletproofing.

A vast majority of the reason people get poor investment returns is that they get emotional. This is one of, if not the primary benefits of working with a financial advisor – they can help you control your emotions.

Once you realize how investing works – the opportunities and how to minimize your risk, it helps take the emotion out of it.

All of my long-term investments are held in four different accounts:

- Roth IRA
- 401k
- [SEP IRA](https://millennialmoney.com/best-sep-ira-providers/)
- Brokerage account

The first three are tax-advantaged, meaning I get a tax benefit when I either deposit or withdraw the money.

Taxes can take a massive chunk of the future earnings of your investments, so it’s important to minimize their impact as much as possible. This is why I always recommend maxing out your 401k, Roth IRA, and if you have a side hustle, your SEP-IRA before investing in anything else.

One cool feature of most IRA accounts is that you can buy and sell stocks inside them. I buy [AMZN in my SEP-IRA](https://millennialmoney.com/trading-stocks-in-ira/).

Unfortunately, since the IRS wants to get its money, there are contribution limits on any tax-advantaged retirement account.

## Where My Money Is Invested

I manage 100% of my long-term investments myself and still follow my daily investing habits.

Here’s a breakdown of where my money is invested, to give you an example of an investing strategy at work:

### Index Funds: 70%

**70%** of my long-term investments are in index funds. My two favorites are the **Vanguard Total Stock Market Index Fund** and **Vanguard Total Stock Index Fund**, but I invest in a few others highlighted [here](https://millennialmoney.com/millennial-money-portfolio/).

About 80% of my index investments are in domestic funds and 20% in international.

I’m heavily invested in equities for the long haul. The best thing about keeping money in these index funds is that I don’t have to worry about it and they are low-tax since very little trading is done within them.

Also, 90%+ of investors don’t beat the stock market, so I prefer to track the market instead. Every dollar I invested when I started my financial independence journey in 2010 is now worth over 3 dollars today. That’s an insane return for just a few clicks on my phone.

### Equities: 20%

**20%** of my long-term investments are in individual equities that I plan to hold for the long haul like Amazon, Apple, and Facebook.

When investing, I invest in companies I use and believe in. I buy, but I don’t sell stocks very often because I want to minimize my taxes and if you hold an investment for at least a year then it is only subject to capital gains tax – approximately 15-20%.

I don’t day trade or recommend that anyone day trade – it’s too risky and emotional for me.

It also takes way too much time and most people lose money. Day trading is actually one of [my biggest money mistakes](https://millennialmoney.com/7-millennial-money-mistakes/).

### Real Estate and REITs: 5%

**5%** is invested in physical real estate and REITs. I am looking to invest in more real estate properties after my decision to buy instead of rent helped me make over $350,000 on a property in only 4 years.

I am planning to keep investing at least 5% of my portfolio in real estate and starting to explore investing in multi-unit buildings (but finding a deal is tough and this type of investing comes with a lot of hassles). I’ll keep you posted.

### Non-Traditional Investments: 5%

**5%** is invested in non-traditional investments, like domains and art. While these can both be great long-term investments, they’re more speculative – but I know them well, so can make educated purchases. I have made a lot of [money investing in domains](https://millennialmoney.com/domain-investing/) and only recently started investing in art, but look to expand both. I’m a huge fan of domain investing.

### How I Diversify My Investments

This percentage distribution fluctuates quite a bit during the year, depending primarily on the value of the individual equities that I own and my real estate property. As I continue to build more wealth I am planning to pursue other diversification opportunities (those mysterious assets classes and alternative classes the wealthy may or may not make money on!).

As you make more money, diversifying your asset allocation becomes more important, since you don’t want too much of your money in one type of investment. Right now I am probably a bit over-exposed in equities, but in my 30s, I have a long time horizon.

## How to Avoid Bad Investments

Here are a few tips for avoiding poor investment decisions.

### Be Wary of Investment Advice from Scammers

I hear more terrible investing ideas, than good ones. For instance, I attended a wealth expo and 90% of what the speakers shared was not only wrong, it was dangerous and destructive.

Then I sat and watched as over 6,000 people listened to pitches for everything from tax liens to software to the speaker who promised to only pick winning stocks.

A majority of the audience fell for it – lining up to pay thousands of dollars on speculative investing products that promised 30%+ per year. They will very likely all lose their money on strategies that don’t work.

I’ve also had family members who have been misled by financial advisors who promised returns of over 30% per year.

If anyone promises you any type of return over 12%, 99% of the time they are probably playing you!

That’s one of the primary reasons I started this website because there’s just so much confusing and misleading information out there. Don’t fall for the scams.

If you choose to work with a financial advisor, choose a legit one with a good reputation and the credentials to back up their services.

### Don’t Invest in Anything You Don’t Understand

I’ve worked super hard for my money and don’t gamble it on investments I don’t understand. So many people, especially now that they know I have some money, try to sell me stupid investments. I don’t listen to pitches unless I solicit them.

An investment has to be really compelling for me to go beyond my core investing strategy. A vast majority of my money has been made and still sits in the following investments.

### 5 Tips to Avoid Crappy Investments

1. NEVER buy a financial or investing product from someone you just met
2. Getting returns 12%+ per year is ridiculously hard and if anyone promises you a return they are probably full of it.
3. If you don’t understand it, don’t invest in it.
4. Most “investments” people sell might have worked one time, if at all, and simply can’t be recreated by you. If you see the “results not typical” on any marketing materials rip them up and run the other way!
5. There are no “secrets of the super wealthy” that anyone will sell you for $500 that you can actually take advantage of unless you have hundreds of thousands of dollars.

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## Conclusion

As you can see, there are quite a few investment strategies out there. Which one is right for you depends on what you’re investing for, how comfortable you are with risk, and how involved you want to be.

All of these strategies have their benefits. Whatever route you choose, the most important thing is to get started.

Following my investment strategy and managing my investments myself were essential to helping me reach $1 million in 5 years.

My investments also continue to grow and I’m still benefiting from the compounding of the money I started investing in 2010.

Please remember that I am not a financial advisor and that any investing comes with risk, but I hope this helps you on your journey to financial independence and beyond.

What do you invest in? To learn more about investing in my book [_Financial Freedom: A Proven Path to All The Money You Will Ever Need_](https://grantsabatier.com/books/financial-freedom-book/)

_J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (“J.P. Morgan”), a registered broker dealer and investment adviser, member FINRA and SIPC. Millennial Money is a publisher of J.P. Morgan, (“Publisher”). The Publisher will receive compensation from J.P. Morgan if you provide contact details to speak with a J.P. Morgan representative. Compensation paid to the Publisher will be up to $500 per completed contact form. Compensation provides an incentive for the Publisher to endorse J.P. Morgan and therefore information, opinions, or referrals are subject to bias. J.P. Morgan and the Publisher are not under common ownership or otherwise related entities, and each are responsible for their own obligations. Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved._

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- ![Comment Author image blank](https://millennialmoney.com/wp-content/themes/mmg-base/images/blank_gravatar.jpg)



Beau W

Feb 23 2021







People overlook the value of waste disposal companies. Long term holds for value. No matter how bad the economy is garbage still gets picked up. 3 companies too keep. Waste Connections. Cassella waste, and Republic service. Check them out for yourself and look at the performance. Great article si.

[Reply](#comment-142118)

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Andrew WAtson Wilmette

Mar 15 2020







Wow! This article just blew my mind. Such an amazing read.Thank you for the value offered here:-)

[Reply](#comment-76350)

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Investademy.com

Jul 08 2019







Quite interesting article on investing. Thumbs up from our team - we love it

[Reply](#comment-36747)

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RawMD

Jun 03 2019







Great post. I'm curious how you are investing in a SEP-IRA (tax deferred) and doing traditional IRA to Roth IRA backdoor conversions at the same time without getting hit with conversion taxes on SEP-IRA? I thought you can't have tax deferred money in a SEP-IRA if you want to avoid this.

[Reply](#comment-35283)

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I went travelling and now I’m a different person - Temples and Treehouses

May 25 2019







\[…\] I bought into a budgeting app. I have a lot of thoughts about personal finance, compound interest, index funds and the FIRE movement (I am here for all of them). I read books and blog posts about money. \[…\]

[Reply](#comment-34860)

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Buy Your Freedom – Written Word Nerd

Mar 26 2019







\[…\] So here’s the thing. My preferred investment strategies are Dividend Growth Investing (largely inspired by a personal money mentor in my life, and then by Mr. Free at 33) and Indexing (as Sabatier recommends). \[…\]

[Reply](#comment-31100)

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8 Top Investment Strategies: How To Pick The Best One For You - YOU Are Investing

Mar 19 2019







\[…\] check out Grant Sabatier’s article Best Investing Strategies to see a full investment strategy that alows him to achieve his \[…\]

[Reply](#comment-30781)

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Nolan - Elemental Investing

Mar 03 2019







I think understanding investment time horizon is key for people. Bonds or cash get a bad rap for younger investors, but capital preservation is key when you are saving for a big purchase (house, car, ect). Learned that lesson the hard way. Great advice all around.

[Reply](#comment-29857)

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My Maverick Money

Sep 12 2018







This is a very informative article. In fact, I am a huge proponent of index fund investing. Btw, it was interesting to see how people spend over $15 per week on lottery tickets.

[Reply](#comment-22193)

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Donovan

Jul 12 2018







Hi Grant I like the article, and the overall themes. However, I would disagree with the part related to investing in CD's with your local bank, most of the time these do not even keep up with the pace of inflation. I'd like to see more about putting money in an online bank, or investing in money market funds or stable value funds for those trying to keep their money liquid in the short term.
Like your ideas though, keep them coming.

[Reply](#comment-19913)

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Rahul Roy

Jul 02 2018







Good investments techniques and strategies are mentioned in this post. Investment in the different finance sector is different. With this full of informative post, we can choose safe investment area with the minimum investment amount. Thanks for sharing this post.

[Reply](#comment-19432)

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John Shepard

Jul 01 2018







Good afternoon! I replied to a post of yours about a year ago. Been busy regaining my savings after reading a piece from you about renting or buying. I'd like to thank you, while I'm not entirely sure if it was a GREAT decision, it was a good one. I managed to reduce my liabilities by 300 dollars every month. My house payments are low given my good credit score. Nevertheless, I felt the need to give a large down payment...I think that was my mistake. Either way with the lower monthly expenses I recouped another 15k and so I'd like to ask you a big question.

[Reply](#comment-19379)

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David Briggs

Mar 25 2018







Grant, I am beginning my financial independence journey in my mid twenties and really have just got started. I am really interested in ETF investing. Can you clarify what happens to and index fund were the individual equities of the stock market to fall. At that time does an investor need to look at changing the indexes in a portfolio. I am going to begin reading the coffeehouse investor book you have recommended and look to build my knowledge further through the coming months approaching my employer 401 k program which starts in July. I appreciate any advice you can lend.
Thanks,
David Briggs

[Reply](#comment-14725)

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Alex

Nov 10 2017







Thanks for this post. It's really nice seeing someone lay out their strategy. Often times we get caught up in the tactics of investing and forget that the strategy is much more important. I am curious how often your strategy has changed before you found the winning strategy.

[Reply](#comment-8507)


  - ![Grant Sabatier](https://millennialmoney.com/wp-content/themes/mmg-base/images/authors/grant.jpg)



    Grant Sabatier

    Jan 08 2018







    Thanks Alex

    [Reply](#comment-10786)


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Hannah

Jun 18 2017







Be careful using a traditional to back door Roth IRA conversion with a SEP-IRA....I believe the pro-rata rule forbids this. Maybe consider a solo 401k instead? Otherwise, great article!

[Reply](#comment-4028)


  - ![Grant Sabatier](https://millennialmoney.com/wp-content/themes/mmg-base/images/authors/grant.jpg)



    Grant Sabatier

    Jun 19 2017







    Thanks Hannah. Good word of caution!

    [Reply](#comment-4065)


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Adrian - Investor Tuition

Jun 17 2017







Hi Grant,, some very good advice in your post. I certainly agree with you regarding promised returns that are promised to investors. The old axiom of 'it sounds too good to be true, it usually is" should be the number one rule to protect yourself from falling into the many investment traps out there. It is odd that people find lot's of statements unbelievable when they hear them, think used car salespeople. But when it comes to money they seem to believe every single word told to them! Regards Adrian

[Reply](#comment-4022)


  - ![Grant Sabatier](https://millennialmoney.com/wp-content/themes/mmg-base/images/authors/grant.jpg)



    Grant Sabatier

    Jun 19 2017







    Thanks Adrian

    [Reply](#comment-4067)


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Evan

May 19 2017







Nice article, Grant. Isn't the 401K contribution limit $18,000?

[Reply](#comment-3287)


  - ![Grant Sabatier](https://millennialmoney.com/wp-content/themes/mmg-base/images/authors/grant.jpg)



    Grant Sabatier

    May 19 2017







    Good catch! Fixed. Thanks Evan.

    [Reply](#comment-3294)


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Mrs. Adventure Rich

May 19 2017







Oh man, I love this article! Thank you for outlining the not only your strategy, but the common pitfalls and dangers as well. And great idea for short-term investing too! This one is going into my bookmarks to share :)

[Reply](#comment-3286)


  - ![Grant Sabatier](https://millennialmoney.com/wp-content/themes/mmg-base/images/authors/grant.jpg)



    Grant Sabatier

    May 19 2017







    Thanks!

    [Reply](#comment-3295)


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Matt Amble

May 11 2017







Hello Grant, any thoughts on NVIDIA (NVDA)? Great investing advice overall, very similar to what Warren Buffet does. Thanks!

[Reply](#comment-3111)


  - ![Grant Sabatier](https://millennialmoney.com/wp-content/themes/mmg-base/images/authors/grant.jpg)



    Grant Sabatier

    May 16 2017







    Thanks Matt. I don't know anything about NVDA.

    [Reply](#comment-3233)


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Ariel Wilstead

Apr 12 2017







Thanks for the advice Grant! I do think financial adviors can be helpful but it's important to hire a "fiduciary" becuase that means they put your needs above their own personal interest. I've also heard horror stories on the high fees that some investment products have, so good job in recommending Vanguard.
I really appreciate the short-term and long-term advice. After building my emergency fund, I'm focusing on maxing out my 401k. I've heard about IRAs, but I've been focusing on researching all the possibly options I have. You definitely narrowed down some options! I'm also was looking to invest into only low-index funds, so thank you for listing out some of the other investments you built.
After reading your experiences, I'm more optimistic about my future than before! Most of the people around me focus too much on saving and the short term, so I'm going to share this information.

[Reply](#comment-2439)


  - ![Comment Author image blank](https://millennialmoney.com/wp-content/themes/mmg-base/images/blank_gravatar.jpg)



    Grant @MillennialMoney

    Apr 13 2017







    Nice! Thanks for the kind words Ariel. So many people talk about "investing" as one topic, when short-term investing and long-term investing are very different. I plan to stay true to this strategy for the long haul - all of the data really supports it's a solid long-term strategy. It sounds like you are on the right track.

    [Reply](#comment-2453)


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Brian McGraw

Apr 12 2017







Do you recommend using robo adviser accounts such as Wealthfront and Betterment for investing? I opened up a personal taxable account with a robo adviser but I was wondering if it would have been smarter to open a traditional IRA instead?

[Reply](#comment-2428)


  - ![Comment Author image blank](https://millennialmoney.com/wp-content/themes/mmg-base/images/blank_gravatar.jpg)



    Grant @MillennialMoney

    Apr 12 2017







    Hi Brian. If you don't yet have an IRA, then yes I recommend opening a Roth IRA if you are going to use a robot advisor, before open a taxable account.

    [Reply](#comment-2430)


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The Grounded Engineer

Apr 10 2017







Great post, Grant. I see someone caught the ETFs at Vanguard that don't require a minimum. The ETFs are also very low cost.
I have access to the Admiral Share funds at Vanguard in my 401k - anyone with Vanguard options should see if there are Admiral funds because they are extremely low cost. I keep a mix of 95% stocks and 5% bonds. I also invest in a Roth, my HSA, and a taxable account.

[Reply](#comment-2405)


  - ![Comment Author image blank](https://millennialmoney.com/wp-content/themes/mmg-base/images/blank_gravatar.jpg)



    Grant @MillennialMoney

    Apr 10 2017







    Thanks Taylor.

    [Reply](#comment-2406)


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Wallet Squirrel

Apr 10 2017







Pretty solid strategy. The only thing I'd further stress is the importance of low fees with those vanguard funds. Fees are usually what get people. Speaking of fees.
WHO are the people promising 30% annual profit at these conventions? That's ridiculous. Plus I assume that have insane fees that they try to justify with a 30% return they got one time in 1978.
I like that you expand into other areas like domain investing. I'm not sure if it's advice I'd give to anyone, but it's a really fun hobby to have.
Thanks for sharing!

[Reply](#comment-2400)


  - ![Comment Author image blank](https://millennialmoney.com/wp-content/themes/mmg-base/images/blank_gravatar.jpg)



    Grant @MillennialMoney

    Apr 10 2017







    Thanks Wallet Squirrel. Love your blog name! I know the 30% is ridiculous - I literally laughed out loud when he said it.

    [Reply](#comment-2403)


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Graham @ Reverse The Crush

Apr 10 2017







Thanks for sharing your investment strategy, Grant. I think you've got an excellent plan in place to manage risk. I also try to avoid investing in companies that I don't understand too.
In regards to what I invest in, my portfolio is invested in mostly in Canadian bank stocks right now. Since I am a dividend investor, I keep a list of companies worth investing in and add to them as frequently as I can. I also like reits. I am looking to add REI.UN to my portfolio in the near future. Although my portfolio is not as diversified as perfectly as I would like it to be, I have plans to improve that as I build it over the next 10 or so years. My ideal portfolio consists of 12 to 15 high quality blue chip stocks with a bond index, 5 to 10 % money market portion, and the rest in an S&P 500 Index ETF.
Thanks again for sharing.

[Reply](#comment-2398)


  - ![Comment Author image blank](https://millennialmoney.com/wp-content/themes/mmg-base/images/blank_gravatar.jpg)



    Grant @MillennialMoney

    Apr 10 2017







    Thanks Graham.

    [Reply](#comment-2402)


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The Savvy Couple

Apr 10 2017







Wow! Talk about an informative blog post on investing =). Everything you stated in this post is pretty much spot on. It's great to hear we are going about investing the right way.
Really hope this article reaches the right people. Too many people are way too afraid of the market and miss out on so much opportunity! It's really sad.
Making Sense of Cents just had a great article today that 56% of American's have less than $10,000 saved for retirement! That number is staggering.
What are your thoughts on using a Robo Investor like Betterment or Wealthfront for "beginner investor"?

[Reply](#comment-2392)


  - ![Comment Author image blank](https://millennialmoney.com/wp-content/themes/mmg-base/images/blank_gravatar.jpg)



    Grant @MillennialMoney

    Apr 10 2017







    Thanks Savvy Couple. I used Betterment for a year - you can check out my review here: https://millennialmoney.com/betterment-review/ but then I switched over fully to Vanguard, because I wanted to manage all of my money myself. Betterment is great if you want to be completely hands-off, but their fees will add up over time, so just putting money in a Vanguard index or target date fund will be a lot cheaper long term.

    [Reply](#comment-2401)


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Erik @ The Mastermind Within

Apr 10 2017







Right now I'm keeping it pretty simple: maxing my Roth IRA in a Vanguard dividend index fund, getting the company match in my 401k and investing in index funds there, and looking to build wealth through real estate and the internet.
Whenever someone asks me about investing, I usually tell them first to get an emergency fund and to track their net worth. After that stage, then Vanguard will do the trick.

[Reply](#comment-2383)


  - ![Comment Author image blank](https://millennialmoney.com/wp-content/themes/mmg-base/images/blank_gravatar.jpg)



    Grant @MillennialMoney

    Apr 10 2017







    Great steps Erik. Do you only contribute in your 401k until you get the match or are you trying to max it out? I think it's a great decision to max out the Roth IRA before maxing out the 401k, but would recommend pushing the 401k limit when you can. I'm actually a huge fan of investing your emergency funds - do you do the same since you have Roth IRA that you could withdrawal the contributions tax free? I find having cash emergency funds and a Roth IRA redundant and I've always [invested my emergency fund](https://millennialmoney.com/investing-your-emergency-fund/). Thanks for sharing!

    [Reply](#comment-2387)


- ![Comment Author image blank](https://millennialmoney.com/wp-content/themes/mmg-base/images/blank_gravatar.jpg)



Ian Esplin

Apr 10 2017







Great article about investing. so many people don't know how simple investing can be.
Vanguard is a great way to DIY. There are investing minimums on most of their mutual funds/index funds, however there are no minimums on ETFs.
Several ETFs are the same as their mutual/index funds. For example, VTI is an ETF that tracks as the total US stock market (same as VTSMX/VTSAX) and you can buy one share at a time instead of the minimum $3,000. Plus, you get the same expense ratio as the admiral shares ($10,000 minimum).
ETFs are a great way to start investing without having a lot of cash on hand.

[Reply](#comment-2380)


  - ![Comment Author image blank](https://millennialmoney.com/wp-content/themes/mmg-base/images/blank_gravatar.jpg)



    Grant @MillennialMoney

    Apr 10 2017







    Thanks Ian. That's a great point about ETFs that I completely missed. I will edit the post to reflect the no minimums on Vanguard ETFs. I appreciate you bringing it up.

    [Reply](#comment-2386)


- ![Comment Author image blank](https://millennialmoney.com/wp-content/themes/mmg-base/images/blank_gravatar.jpg)



Cody @ Dollar Habits

Apr 10 2017







"A vast majority of the reason people get poor investment returns is because they get emotional." Yes, yes, yes! If you can remove or drastically minimize emotions from investing and rather employ knowledge, logic and discipline, you can set yourself up for investing success.
Thank you for the killer post, Grant, and for sharing your investment strategy. It's awesome to get some insight into how you roll. I am of a similar mindset and belief. Currently, we are also only invested for the long-term and utilize Roth IRAs and a 401(k) to do so. Also on the radar is investing in real estate. We had what sounds like a similar experience to you. We bought our primary residence at the very bottom of the market in 2010, at age 23 and have benefited from a ton of appreciation. Next on the list is to pick up our first investment property. Thanks, again, for the really great post.

[Reply](#comment-2379)

  - ![Comment Author image blank](https://millennialmoney.com/wp-content/themes/mmg-base/images/blank_gravatar.jpg)



    Grant @MillennialMoney

    Apr 10 2017







    Thanks Cody. I'm happy you enjoyed the post. The longer I invest the less emotional I get, because the system really works. Since I know I have a solid investing strategy, I focus a lot more of my time on making money instead of tinkering with my investments.

    [Reply](#comment-2385)

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