How To Invest $100 a Month & What To Expect

You might think a $100 investment can’t go very far. But when consistently and properly invested, your $100 could make you thousands over time. 

‘Investment’ can be a daunting term. You could choose to invest on your own. You’d need to do your own research. Then you’d need a broker, who would probably charge high fees and require a minimum investment. And then you would need to stay on top of your investments to ensure your portfolio is on track. 

Most of us don’t have the time or expertise for that. 

You don’t need to go it alone. With a managed portfolio and a smart investing strategy, you can make your money work harder for you. 

With a managed account from MoneyLion, financial professionals curate the best investment options where you can allocate your money. You can choose the right option based on your risk tolerance, whether conservative or aggressive. 

Take a hard look at your budget, your timeline and your financial goals. Do you need your money in the short term? Or are you focused on longer-term gains? Are you comfortable with taking a risk to earn a greater reward? Or are you looking at a more moderate strategy? Questions like these help determine your risk tolerance. 

Automatically Invest $100 a Month 

Once you commit to investing, the best way to ensure you meet your goals is to automate the process. Make sure the company you invest with lets you set up a recurring deposit. Then you can contribute to your investment account as easily as you pay any monthly bill. 

Setting up an automatic transfer sets you up for success. 

What Are The Forecasted Investment Returns 

Your $100 or more a month – invested consistently – can grow surprisingly fast. 

Keep in mind that these examples are hypothetical. They’re based on a 5% expected return. That’s generally what you might be able to expect from an investment account with a moderate risk profile. These examples demonstrate what can happen when you automate your investment process. 

Remember – there are no guarantees with investing. You could earn more. Or your investment could lose value.

If you invest $100 a month

Years InvestingDepositedProjected Value
5$6,000$7,700
15$18,000$38,047
30$36,000$160,839

If you invest $150 a month

YearDepositedProjected Value
5$9,000$11,550
15$27,000$57,070
30$54,000$241,258

If you invest $250 a month

YearDepositedProjected Value
5$15,000$19,250
15$45,000$95,117
30$90,000$402,097

ETFs Used in The Investment Account

Managed accounts often invest in exchange transfer funds or ETFs. An ETF is a group of stocks, bonds, or commodities or some combination of these, that you can buy and sell. 

ETFs are as diversified as mutual funds, but can be traded as easily as stocks. They offer a range of investments in a single fund tied to your risk profile. 

For example, MoneyLion may invest your money in some of these ETFs. 

iShares Short-Term Nat’l Muni Bond ETF (SUB) This fund tracks the investment results of an index of investment-grade US municipal bonds set to mature in between one month and five years. It’s a fixed income fund, which means it’s low risk. 

Vanguard Tax-Exempt Bond ETF (VTEB) This fund tracks the performance of the S&P National AMT-Free Municipal Bond Index. As an intermediate bond fund, it has lower risk than other funds. 

Vanguard S&P 500 ETF (VOO) This fund invests in stocks in the S&P 500 Index, which represents the largest US companies. As a domestic stock fund, it offers high potential for growth. However, value rises and falls more sharply than with bond funds. 

Vanguard Extended Market ETF (VXF) This fund matches the performance of small and medium sized US companies. It’s a domestic stock fund, and more aggressive than other stock funds. 

Vanguard FTSE Developed Markets ETF (VEA) This fund matches the performance of large-, mid-, and small-cap companies in Canada, Europe and the Pacific region. As an International/Global fund, it’s among the riskiest stock funds. 

Vanguard Total International Stock ETF (VXUS) This fund measures the investment return of stocks issued by companies outside the US. It’s an International/Global Stock fund and so among the riskiest stock funds. 

Vanguard FTSE Emerging Markets ETF (VWO) This fund invests in companies in emerging markets in countries such as China, Brazil, Taiwan, and South Africa. The value may swing more than stock funds investing in developed countries. 

iShares Short-Term Treasury Bond ETF (SHV) This fund tracks the investment results of US Treasury bonds that mature in one month and one year. It’s effective as a short term investment, but does not generate high return. 

iShares Floating Rate Corp Bond ETF (FLOT) This fund tracks the investment results of US dollar-denominated, investment-grade floating rate bonds which mature in between one month and five years.

Vanguard Short-Term Bond (1-5 yr) ETF (BSV) This fund tracks the performance of the Bloomberg Barclays U.S. 1–5 Year Government/Credit Float Adjusted Index. This is a bond index that covers investment-grade bonds. It’s a low risk, short-term bond fund.

iShares 0-5 High Yield Bond ETF (SHYG) This fund tracks the results of an index of US high yield corporate bonds which mature in less than five years.

Vanguard Aggregate Bond ETF (BND) This fund keeps pace with US bond market returns and provides broad exposure to US investment grade bonds. It’s an intermediate term bond fund with lower risk. 

Vanguard Int’l Bond ETF (BNDX) This fund tracks the performance of the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged). It’s a taxable bond fund with lower risk. 

Understanding The Risks

Investing means balancing risk and reward. In general, the higher the risk, the greater  the potential reward. 

The lower the risk, the less likely it is you’ll lose your investment.  But you probably won’t make as much as with higher risk options. 

You need to take a hard look at your goals, your timeline, and your comfort level with risk, and find your investing sweet spot. MoneyLion will help with that.

$100 a Month Can Really Grow!

Want to start putting your money to work? Start with MoneyLion, where 90% of the members are first-time investors. 

Just download the MoneyLion app and sign up for a managed investment account at no cost. 

Answer a few quick questions to help determine your risk profile, decide, how much to invest, set up an Auto Invest plan, and watch your money go to work. There is no minimum balance. 

You can keep track of your investments on the app, and adjust the risk profile if you like. 

MoneyLion can help you get started investing and make sure you’re on track to meet your goals.

Here’s more information on why auto investing works, even when the markets are volatile.