How to invest your first $1000 using the Robinhood app ► My Stock Portfolio: https://www.patreon.com/andreijikh ► Get 2 Free Stocks on WeBull when you deposit $100 (Valued up to $1400): https://act.webull.com/kol-us/share.html?hl=en&inviteCode=QhhB1aDNwEDP ► Try Audible and Get Two Free Audiobooks: https://amzn.to/2ouTHKS ► M1 Finance Roth IRA: https://m1finance.8bxp97.net/c/1980551/696710/10646 ► Stocking Stuffers for the Holidays: https://www.ipo52.com/ ► Robinhood Invite Code (grab your other free stock): https://robinhood.c3me6x.net/c/1980551/671816/10402 ► How I Make My Videos: https://www.amazon.com/shop/andreijikh ► Music In My Videos: https://www.epidemicsound.com/referral/cr8cqg/ ►Instagram: https://www.instagram.com/andreijikh/ ► http://www.MAJIKH.com/ Nick Suriano's Magic: https://www.youtube.com/channel/UCkVeHq0fqHtCbIF2FVrRHjQ Nick On IG: https://www.instagram.com/nic_suriano/?hl=en This is exactly how to invest your first $1000 using the robinhood app. Today I sit down with my friend Nick, he's a complete stock market beginner and knows nothing about investing or how to use robinhood. Today I'd like to show him how to make passive income by investing in either index funds, or dividends using exchange traded funds or "ETFs". Here are some topics we'll be covering with the robinhood app. Signing up, basic features I use, setting up auto transfer from your bank, which features to avoid (such as leveraged trading, robinhood gold, margin trading, etc.), how to buy and sell, and finally, I'm going to set my friend up with a stock based on his investing goals. Based on Nick’s answers, I went with either a broad market S&P500 ETF, or a dividend etf. When I say broad market, I’m referring to the S&P500 which tracks the biggest 500 companies in the United States. An index fund, tracks the performance of all these companies in what are called mutual funds. An ETF is an exchange traded fund version of that which is a fancy way of saying, it’s a stock that is regularly traded on an app like Robinhood, which I consider to be the best brokerage app. Personally, I own close to 100 stocks, but it takes a lot of time to manage them, an ETF is essentially a compressed version of them all in one stock, for a price that’s just a fraction of my portfolio - by spreading your money across all the different equities. An ETF is a great way to automate investing, saving you time, while beating most people’s market returns. Another advantage of ETFs is the self shedding and self growing process. Meaning, if one of the stocks falls out of it's respective criteria, it will be replaced by anther stock, without your input and management. You have zero work with ETFs. There are many ETFs to select from, VIG, SPHD, SCHD, SPYD, SDY, the list goes on and on and it really does get overwhelming, but there’s not that much of a difference between them other than what they track and what are called "expense ratios" which is we as investors pay yearly for this automation. One of my favorite dividend etfs is SPHD with a dividend yield of 4.3%. That means for every $100, you will be earning $4.30 per year. This is paid out monthly (spread out over the course of 12 months). Alternatively, another good stock is VTSAX, it’s the Vanguard Total Stock Market Index Fund. It tracks the entire stock market of the US, it contains over 3,600 companies. If you were to get the index fund version of this fund, you would need a minimum of $3,000, but because this is the exchange traded fund version of this stock, it's much cheaper. By buying either of these consistently, you can create an incredible stream of passive income that will pay you dividends for a very long time in retirement. Speaking of early retirement, when you're ready to sell, you don’t sell all your stocks at once. You only sell what you need to pay for life’s expenses. The better way, is to withdraw 4% per year. The theory is that you will never run out of money because your invested money will make money faster than you can spend it. Is Robinhood safe though? What if Robinhood goes out of business? Fortunately, Robinhood is SIPC insured. Even if a brokerage like this goes out of business, your cash and stocks will be protected up to $500,000, cash is protected up to $250,000 of that half a million. That’s called SIPC insurance, and you don’t ever want to use a brokerage that isn’t SIPC insured, nor use banks that are NOT FDIC insured. Please remember when investing, to always do your own research, the opinions expressed in this video are solely my own. *Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.