Investing is for Everyone: 4 Steps to Get Started

You don’t need to work on Wall Street or read the financial section every day to make your money work for you. Investing is for everyone! To help you get started, the Black Hills Investment Services crew shares how to prepare for and begin investing.


#1 – Build an emergency fund.
The first step to investing is making sure you’re financially sound. To begin, pay yourself first. Set up an automatic deposit to your savings account and create an emergency fund. When fully funded, your account should amount to roughly six months of living expenses.


#2 – Pay off high-interest debt.
In tandem with building an emergency fund, paying off any high-interest debt before you start investing is essential. You can’t make your money work for you while paying high-interest rates! Once you pay off your debt, leave it that way. If you’re using credit cards, act as if they are cash and pay them off in full and on time.


#3 – Start investing with the basics.
Once you’ve mastered steps one and two, you’re ready to invest. If your employer offers a matching contribution on its retirement plan, take advantage – it’s free money! Say your employer offers a 3% 401k match; when you invest 3% of your pay in the account, they will double it. Don’t have access to an employer plan? Come visit with one of the advisors at Black Hills Investment Services about what individual account best fits your needs.


#4 – Understand the differences and advantages of traditional and Roth accounts.
For many, retirement is the ultimate investment goal. Retirement accounts fall into two types, traditional and Roth. Understanding the differences and advantages is important for tax reasons. A traditional account allows you to get a tax deduction now, but withdrawals in retirement are taxable. Roth accounts provide no tax savings now but once retired, withdrawals are tax-free. Get advice from an investment professional and plan accordingly!


Whether you’re already investing or just getting started, call Black Hills Investment Services at 605-858-6183 to set up a review. We can help you understand if your current investments align with your goals or help you start your investment journey!

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Black Hills Federal Credit Union and Black Hills Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Black Hills Investment Services and may also be employees of Black Hills Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Black Hills Federal Credit Union and Black Hills Investment Services. Securities and insurance offered through LPL, or its affiliates are: 

*Not Insured by NCUA or Any Other Government Agency | Not Credit Union Guaranteed | Not Credit Union Deposits or Obligations | May Lose Value