Scott Tominaga: Get Started with Beginner-Friendly Investments

Stepping into the world of investing doesn’t have to be overwhelming, especially with options that cater to beginners in 2024. Scott Tominaga discusses the choices that offer growth potential without the complexity.

Stock market index funds

For beginners dipping their toes into the stock market, index funds are a great place to start. Index funds follow a specific market index. It also offers quick diversification and reduced risk when compared to investing in individual stocks. With the market historically showing growth over the long term, index funds provide a solid foundation for beginners.

Exchange-traded funds

ETFs provide a simple way for beginners to diversify their investments with a mix of stocks, bonds, and commodities. According to Scott Tominaga, they trade on the stock exchange like individual stocks, making them accessible and easy to manage.

Real Estate Investment Trusts (REITs)

Real estate might seem to be too big of an investment for newcomers. However, REITs make it more manageable by allowing investors to pool resources to own, operate, or finance income-generating real estate. Scott Tominaga says that it’s a hands-free way to dip into the real estate market.

Cryptocurrency

For those comfortable with a bit more risk, cryptocurrencies like Bitcoin or Ethereum could be intriguing. However, beginners need to grasp the volatile nature of the crypto market and do their homework before diving in.

Savings accounts and certificates of deposit (CDs)

If stability is the priority, Scott Tominaga says traditional savings accounts or CDs are low-risk options. While the returns may not be as high, they provide a safe place for beginners to park their money.

The key for beginners in 2024 is simplicity and diversity. Start with investments that match your comfort level and expand as you grow more confident. Remember, investing is a journey, and taking small, well-informed steps can lead to financial success over time.

Scott Tominaga is the Chief Operating Officer of PartnersAdmin LLC, a company established that provides the dynamic back-office needs of the alternative funds industry. Visit this blog for more articles on business and finance.