Hello. Today we will tell you about how to start investing, depending on your goals.

To get started investing, pick a strategy based on the amount you’ll invest, the timelines for your investment goals, and the amount of risk that makes sense for you.

Get started investing as early as possible

Investing when you’re young is one of the best ways to see solid returns on your money. That’s thanks to compound interest, which means your investment returns start earning their own return. Compound interest allows your account balance to snowball over time.

There will be ups and downs in the stock market, of course, but investing young means you have decades to ride them out — and decades for your money to grow. Start now, even if you have to start small.

Decide how much to invest

One common investment goal is retirement. If you have a retirement account at work, like a 401(k), and it offers matching dollars, your first investing milestone is easy: Contribute at least enough to that account to earn the full match. That’s free money, and you don’t want to miss out on it.

As a general rule of thumb, you want to aim to invest a total of 10% to 15% of your income each year for retirement — your employer match counts toward that goal. That might sound unrealistic now, but you can work your way up to it over time.

Open an investment account

If you don’t have a 401(k), you can invest for retirement in an individual retirement account, like a traditional or Roth IRA.

If you’re investing for another goal, you likely want to avoid retirement accounts — which are designed to be used for retirement, and thus have restrictions about when and how you can take your money back out — and choose a taxable brokerage account. You can remove money from a taxable brokerage account at any time.

Understand your investment options

Whether you invest through a 401(k) or similar employer-sponsored retirement plan, in a traditional or Roth IRA, or in a standard investment account, you choose what to invest in.

It’s important to understand each instrument and how much risk it carries. The most popular investments for those just starting out include:

Stocks (also known as equities) — a share of ownership in a single company. Stocks are purchased for a share price.

(also known as equities) — a share of ownership in a single company. Stocks are purchased for a share price. Bonds — essentially a loan to a company or government entity. In the meantime, you get interest. Bonds are generally less risky, but they have lower long-term returns.

— essentially a loan to a company or government entity. In the meantime, you get interest. Bonds are generally less risky, but they have lower long-term returns. Mutual funds — a mix of investments packaged together. The inherent diversification of mutual funds makes them generally less risky than individual stocks.

— a mix of investments packaged together. The inherent diversification of mutual funds makes them generally less risky than individual stocks. Exchange-traded funds (ETF) — hold many individual investments bundled together. ETFs trade throughout the day like a stock, and are purchased for a share price.

Pick an investment strategy

If your savings goal is more than 20 years away (like retirement), almost all of your money can be in stocks. But picking specific stocks can be complicated and time consuming, so for most people, the best way to invest in stocks is through low-cost stock mutual funds, index funds or ETFs.

If you’re saving for a short-term goal and you need the money within five years, the risk associated with stocks means you’re better off keeping your money safe, in an online savings account, cash management account or low-risk investment portfolio. We outline the best options for short-term savings here.

If you can’t or don’t want to decide, you can open an investment account (including an IRA) through a robo-advisor, an investment management service that uses computer algorithms to build and look after your investment portfolio.