How do I start growing a nest egg for retirement with very little savings?

How do I start saving for retirement with less than $5,000? I'm receiving monthly survivor's benefits and want to put the money in some kind of savings that will help build a nest egg. Recent bank experience just showed that I don't know what I'm doing and my bank isn't a big help. One year of a $1,000 CD yielded me $2.50. I'm very disappointed and need a better plan for how to grow my money.

Banking, Retirement, Retirement Savings
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2 weeks ago

Hey there, 

Starting to invest to receieve better than 0.25% over a year is important.

The simple answer is to open up a Roth IRA and invest into securities (stocks, bonds, ETF, mutual fund) that follow your risk tolerance.

Your risk tolerance will be able to determine how your money should be invested. For example, a CD is very conservative because it holds your premium and there's not a lot going on in terms of return. 

The longer answer is to use a trusted advisor who will look out for your financial goals and objectives. That way they can take into account your risk tolerance, goals, objectives, and expenses and put together a comprehensive financial plan that can be the first step to putting you on the right path.

1. Find your risk tolerance (very conservative, conservative, moderate, aggressive, very aggressive)

2. What are your financial objectives (pay off debt, buy a house, student loans)

3. What are your financial goals (retire, retire early, start a business, second home, financial freedom)

There are advisors out there that help people getting started with little saved. It is always nice to remember, find a path. Obstacles and bumps are a part of life but knowing your path can put you back on a track you set up.

Good luck!

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