Where to Start Investing (Part 1)

Over the last two weeks, we explored the most common investment vehicles — stocks, bonds, mutual funds, ETFs, index funds, and even cryptocurrency. Each one offered different ways to grow wealth, from stability to growth to high-risk opportunities. Taken together, they gave us a toolbox of options you can use to build a portfolio.

But having tools isn’t enough — you need to know how to put them to work. This is where many people get stuck. They understand what the options are, but not where to begin.

Now it’s time to pull everything together and answer the big question: Where should you actually start investing?

For many people, the most practical and effective first step is right where they already are — through an employer-sponsored retirement plan. These plans combine automatic contributions, tax advantages, and often a company match, making them one of the simplest ways to begin turning intention into action.

💡 This Week’s Focus: Employer-Sponsored Plans
Employer retirement plans like 401(k)s, 403(b)s, and similar programs are often the best place to start investing. They’re designed to help you save for the future while offering built-in advantages that make the process simple and powerful.

Here’s why they stand out:

• Automatic payroll contributions — Your investments are deducted straight from your paycheck before you even see the money. This makes saving effortless and consistent, and it helps you avoid the temptation to spend first and save later.

• Tax advantages — Depending on whether you use a Traditional or Roth account, you can either reduce your taxable income today or allow your money to grow tax-free for tomorrow. Either way, the IRS gives these plans special benefits to encourage long-term saving.

• Employer match — Many employers contribute extra money to your account, often matching part of what you invest. This is essentially free money that boosts your savings and accelerates compounding over time. Walking away from the match is like turning down a raise.

Employer-sponsored plans combine discipline, tax efficiency, and employer support — making them one of the simplest and most effective ways to begin your investing journey.

📖 Verse of the Week
“The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.” — Proverbs 21:5 (ESV)

This verse reminds us that building wealth isn’t about rushing into the newest trend or making impulsive choices. Instead, it comes through careful planning, steady contributions, and patient discipline. Diligent, steady investing over time leads to growth. Chasing quick wins or ignoring opportunities often leads to regret.

Common Questions About Employer Plans

How much should I contribute?
Start small if you need to. Even 1–2% of your paycheck builds the habit. Ideally, begin at 4–6% and add 1% each year until you’re saving 10–15% of your income toward retirement. The key is consistency and steady growth over time.

What if my employer doesn’t offer a match?
Even without a match, employer plans still provide tax advantages and the benefit of automatic contributions. If no match is available, contribute what you can and consider supplementing with an IRA (we’ll cover that in the upcoming weeks).

What happens if I change jobs?
It’s generally recommended that you roll your old 401(k) into your new employer’s plan (or into an IRA). Don’t leave accounts scattered with past employers, where they’re harder to track and may carry higher fees. And definitely don’t cash out unless you absolutely must. If you withdraw funds before age 59½, the IRS will tax the money as income and add a 10% early withdrawal penalty — meaning you could lose 30–50% of your savings to taxes and penalties.

🔑 Key Takeaways

• Employer-sponsored plans are often the best first step for beginning investors.

• Always contribute enough to get the full employer match — don’t leave free money on the table.

• Know your plan’s vesting schedule and be cautious with loans — they reduce the time your money stays in the market.

🎯 Weekly Challenge
Log in to your employer’s retirement plan this week. Check:

• Are you contributing enough to get the full match?

• Do you know your vesting schedule?

• Do you have any old 401(k)s left behind at previous employers?

Take one small step to improve, even if it’s just increasing your contribution by 1%.

💬 Reflection Questions

1. Am I taking full advantage of my employer’s retirement plan benefits?

2. Do I know how much I’m contributing and whether it’s enough to reach my goals?

3. What’s one step I can take this week to better steward this opportunity?

📢 What’s Coming Next
In the upcoming weeks, we’ll continue Where to Start Investing by looking at how to invest within your employer plan — the typical investment options, how to assess them, and why low-cost index funds are such a powerful choice.

🔁 New here or missed a few? You can read all the previous newsletters right here: financebyfaith.beehiiv.com

Blessings and financial peace to you!