A plain-English starter guide — what to know, how to begin, and a simple sample portfolio. No finance degree required. Read it, start small, ask questions, grow from there.
The big idea: investing isn’t gambling or day-trading screens. At its simplest, you’re buying tiny slices of real companies and letting them grow over years. You don’t need to be rich or an expert to start — $100 and a free app is plenty. The goal today is just to begin and understand what you own.
🧠 6 ideas that make it click
1. A stock = a slice of a company.
Own one share of Apple and you literally own a (very small) piece of Apple. If the company grows, your slice is worth more.
2. An ETF / index fund = a basket.
Instead of betting on one company, an index fund holds hundreds at once (like the S&P 500 = ~500 of the biggest U.S. companies). One purchase, instant diversification. This is the beginner’s best friend.
3. Diversification = don’t put all eggs in one basket.
Spread across many companies so one bad apple doesn’t sink you. Index funds do this automatically.
4. Fractional shares = buy any dollar amount.
A stock costs $400? You can buy $5 of it. Your $100 can be split across several things.
5. Time > timing.
Nobody reliably guesses the perfect day to buy. Staying invested for years beats trying to time the ups and downs. Don’t panic-sell on red days.
6. Compounding = growth on your growth.
Your gains earn their own gains. Small amounts + time is the secret. Adding a little every month is where the magic really happens.
✅ How to actually start (about 20 min)
1
Open a free brokerage app
All commission-free, no minimums, allow fractional shares. Beginner-friendly picks: Fidelity, Charles Schwab, Robinhood, Public, or Cash App Investing. (Fidelity is a great, no-nonsense first account.)
2
Verify your identity & link your bank
Standard signup — SSN, a few questions, connect a checking account. Transfer in your $100.
3
Buy your first pieces
Search a ticker (e.g. VOO), choose “Buy in dollars,” type the amount, confirm. That’s it — you’re an investor.
4
Set up auto-invest (optional but powerful)
Schedule something small — say $25–$50 a month — to buy automatically. This is “dollar-cost averaging” and it’s how ordinary people build real money quietly over time.
🧩 A sample $100 starter portfolio
Two ways to go — pick the vibe that fits you. (These are examples to learn from, not a recommendation to buy any specific fund.)
Option A — Simple & proven EASIEST
Broad U.S. index ETF (e.g. VOO or VTI)$100
Put the whole $100 into one low-cost fund that owns ~500–4,000 U.S. companies at once. Boring, diversified, and historically the tortoise that wins the race. Fees are tiny (~$0.03 per $100/yr).
Option B — Learn-by-doing mix MORE FUN
Broad index ETF (VOO/VTI) — your core$60
The stable foundation — most of your money in the steady, diversified base.
1–2 companies you know & believe in$25
Pick a brand you use and trust (fractional shares). Owning it makes investing real — you’ll actually enjoy following it and you’ll learn fast.
A growth/tech ETF (e.g. QQQ) or a theme you like$15
A little extra “spice” tilted toward bigger growth (and bigger swings). Small on purpose.
🌱 Then just… keep going
Add a little monthly
$25–$50 auto-invested beats a big lump you keep putting off.
Leave it alone
Check it monthly, not hourly. Green days and red days are normal.
Think in years
This is a long game. 5, 10, 20 years is where compounding shines.
Learn as you go
One new concept at a time. You don’t need it all today.
Little example of the magic: $100 to start + $50/month, growing at a historical-ish ~8%/yr, is roughly $9,000 in 10 years and ~$30,000 in 20 — from money you’d barely miss. That’s the whole point: small + steady + time. (Illustration only; real returns vary and aren’t guaranteed.)
💰 The one that’s just for you: a SEP-IRA
Phil — everything above works for anybody. This part only works for people who own a business. You do. And it’s the single best deal in investing that most people never hear about.
The short version: a SEP-IRA isn’t a different investment. It’s a container you put investments inside. Same VOO, same index funds, same everything from the sections above — but the government gives you a chunk of money back for using this container instead of a regular account.
🧠 Why it’s different
When you put money in a regular brokerage account, you’ve already paid tax on it. When you put money in a SEP-IRA, you get to subtract it from your income before tax is calculated.
Regular account
You invest $5,000. You own $5,000 of investments. That’s it.
SEP-IRA
You invest $5,000. You own $5,000 of investments — and your tax bill drops by roughly $1,600.
Same money. Same investments. One of them just costs you about a third less. That “discount” is real cash that stays in your pocket instead of going to the IRS.
📊 How the math works
Numbers below are just a round example so you can see the shape of it. Ask Christa for your actual number — she has it.
Say you put in…$5,000
Your limit is roughly 20% of what the business made after expenses. So the better the year, the more room you get.
Roughly what comes back~$1,600
Lower income tax — and in our case it also helps unlock rental deductions that would otherwise get phased out. You still own every dollar you put in, invested and growing.
⏰ The deadline is October 15, 2026 — for a 2025 contribution. After that the door closes on this year. (One honest note: it lowers income tax, not self-employment tax.)
✅ How to open one
1
Go to Fidelity, Schwab, or Vanguard
Free to open, no minimum, no annual fee. If you already opened a regular account from the Start section, it’s the same login — just add an account.
2
Choose “SEP-IRA” and “self-employed / sole proprietor”
It’ll ask about the business. J&P Woodcrafters, sole owner, no employees. Takes about 20 minutes.
3
Transfer the money in — and label it “2025 contribution”
This part matters. There’s a dropdown for the tax year. Pick 2025, not 2026, or it counts for the wrong year.
4
Now buy something with it
Money sitting in the account isn’t invested yet — it’s just parked. Buy the same way you would anywhere else. VOO or VTI is a perfectly good answer for all of it. Same Option A from the portfolio section, bigger amount.
⚠️ The one catch, honestly
This is retirement money. You can’t touch it until you’re 59½ without paying tax on it plus a 10% penalty. So it should be money you genuinely won’t need — not your emergency fund, not next quarter’s lumber.
That’s the trade: you give up access for a while, and in exchange you get a third of it back today and decades of compounding after that. For money you were going to invest long-term anyway, it’s close to a free upgrade.
💡 A way to think about it: $5,000 left alone at a historical-ish ~8% is roughly $23,000 in 20 years — and after the tax break it only cost you about $3,400 out of pocket. That’s the whole idea of this page, just with the government chipping in. (Illustration only; real returns vary and aren’t guaranteed.)
💬 Ask Willis — your built-in tutor
Phil, this is a real conversation — type any question below and Willis answers you right here. No question is too basic. Try “what’s the difference between VOO and VTI?”, “what’s a Roth IRA?”, or “how do I actually buy my first share?” 🤍
Hey Phil! 👋 I’m Willis, your investing tutor. Ask me anything about getting started with your $100 — stocks, index funds, how to open an app, whatever’s on your mind. What would you like to know?
VOO vs VTI?What's a Roth IRA?How do I buy my first share?
Educational only — not financial advice. Willis explains ideas; the decisions are yours.
Friendly disclaimer: This is educational information, not financial or investment advice, and the funds/companies named are examples to illustrate ideas — not recommendations to buy or sell anything. All investing carries risk, including the possible loss of money, and past performance doesn’t guarantee future results. For advice tailored to your full situation (and tax questions), consider a licensed financial advisor. You’re in control of every decision.
Made for the Votaw family by Willis 💙 Start small · stay curious · let time do the heavy lifting.