Why April 2025 Is a Great Time to Invest in Stocks — and How to Get Started

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The stock market is down 10% this year, as measured by the S&P 500 Index. That’s scary for those of us who are investing for retirement and have watched our portfolios drop.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But for long-term investors, a stock market dip is an opportunity to make even bigger profits.Buying stocks when prices are lower can set you up for bigger gains later. Think of it like shopping during a big sale: You’re getting more for your money.Here’s why now is a smart time to invest, and how you can start even if you’re brand new to the world of stocks.Why investing during a downturn is smartWhen the stock market drops, a lot of people panic and sell their investments. But smart investors know that downturns are bound to happen sometimes — and the market has always rebounded.Here’s an example. Back in March 2020, the stock market crashed as the COVID-19 pandemic hit. The S&P 500 fell more than 30% in just a few weeks. But investors who stayed the course — or better yet, bought stocks during the drop — were rewarded.By March 2024, the S&P 500 had more than doubled from its low point, gaining over 100% in just four years.Historically, the stock market has always bounced back from downturns and gone on to reach new highs. If you invest now and hold your stocks long enough, you’ll likely be glad you started during a “bad” market.A smart and easy way to start investingIf you’re just starting out, you might wonder where you should put your investments. One of the best places to begin is an individual retirement account (IRA).Here’s why:Investments made through an IRA are exempt from capital gains tax and dividend tax. This benefit alone could save you thousands.Traditional IRAs let you deduct your contributions from your taxable income, so you get an upfront tax break. Roth IRAs instead let you withdraw money tax free once you reach age 59 1/2.Anyone who earns income can open a traditional IRA, and Roth IRAs are available to anyone whose income is under a certain threshold.In 2025, you can contribute up to $7,000 to an IRA (or $8,000 if you’re 50 or older). The only “catch” with IRAs is that you can’t withdraw the funds without paying a penalty until you’re 59 1/2 (with some exceptions). And that’s more of a feature than a bug, because these accounts are meant for retirement savings.How to open an IRAOpening an IRA is fast and easy. Here’s how it works:Pick a brokerage: Choose an online broker that offers IRAs. Look for one with low fees, good customer service, and an easy-to-use website or app.Choose your IRA type: If you want a tax break now, go with a traditional IRA. If you’d prefer to get tax-free income in retirement, choose a Roth IRA (if you qualify).Fund your account: You can link your bank account and transfer money directly into your IRA.The whole process usually takes minutes. Once your account is open, you’ll need to choose and purchase investments through your broker’s platform.Ready to open your own IRA and start investing the tax-savvy way? Check out our list of the best IRA brokers to get started.A great first investment for new investorsIf you’re not sure what to buy, an S&P 500 index fund is one of the best options for beginners.Here’s what you’re getting:Instant diversification: An S&P 500 index fund invests in 500 of America’s largest companies. That means your money is spread across many industries.Strong track record: Over time, the S&P 500 has delivered average returns of about 10% per year.Low cost: Most S&P 500 index funds have very low fees compared to other types of funds.Buying one is easy, too. After you open your IRA, just search for an S&P 500 index fund on your broker’s site and place an order. You don’t have to buy individual stocks or become an investing expert. You’re investing in most of the U.S. market at once.Keep calm and invest onNow might feel like a scary time to invest. But if you can look past the short-term panic, it’s actually a golden opportunity. Lower stock prices today could mean bigger rewards tomorrow.Starting with an IRA and a simple S&P 500 index fund is one of the smartest moves you can make — even if you’re brand new to investing. The important thing is just to start.The best time to plant a tree was 20 years ago. The second-best time? Right now.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

The stock market is down 10% this year, as measured by the S&P 500 Index. That’s scary for those of us who are investing for retirement and have watched our portfolios drop.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

But for long-term investors, a stock market dip is an opportunity to make even bigger profits.

Buying stocks when prices are lower can set you up for bigger gains later. Think of it like shopping during a big sale: You’re getting more for your money.

Here’s why now is a smart time to invest, and how you can start even if you’re brand new to the world of stocks.

Why investing during a downturn is smart

When the stock market drops, a lot of people panic and sell their investments. But smart investors know that downturns are bound to happen sometimes — and the market has always rebounded.

Here’s an example. Back in March 2020, the stock market crashed as the COVID-19 pandemic hit. The S&P 500 fell more than 30% in just a few weeks. But investors who stayed the course — or better yet, bought stocks during the drop — were rewarded.

By March 2024, the S&P 500 had more than doubled from its low point, gaining over 100% in just four years.

Historically, the stock market has always bounced back from downturns and gone on to reach new highs. If you invest now and hold your stocks long enough, you’ll likely be glad you started during a “bad” market.

A smart and easy way to start investing

If you’re just starting out, you might wonder where you should put your investments. One of the best places to begin is an individual retirement account (IRA).

Here’s why:

• Investments made through an IRA are exempt from capital gains tax and dividend tax. This benefit alone could save you thousands.
• Traditional IRAs let you deduct your contributions from your taxable income, so you get an upfront tax break. Roth IRAs instead let you withdraw money tax free once you reach age 59 1/2.
• Anyone who earns income can open a traditional IRA, and Roth IRAs are available to anyone whose income is under a certain threshold.

In 2025, you can contribute up to $7,000 to an IRA (or $8,000 if you’re 50 or older). The only “catch” with IRAs is that you can’t withdraw the funds without paying a penalty until you’re 59 1/2 (with some exceptions). And that’s more of a feature than a bug, because these accounts are meant for retirement savings.

How to open an IRA

Opening an IRA is fast and easy. Here’s how it works:

• Pick a brokerage: Choose an online broker that offers IRAs. Look for one with low fees, good customer service, and an easy-to-use website or app.
• Choose your IRA type: If you want a tax break now, go with a traditional IRA. If you’d prefer to get tax-free income in retirement, choose a Roth IRA (if you qualify).
• Fund your account: You can link your bank account and transfer money directly into your IRA.

The whole process usually takes minutes. Once your account is open, you’ll need to choose and purchase investments through your broker’s platform.

Ready to open your own IRA and start investing the tax-savvy way? Check out our list of the best IRA brokers to get started.

A great first investment for new investors

If you’re not sure what to buy, an S&P 500 index fund is one of the best options for beginners.

Here’s what you’re getting:

• Instant diversification: An S&P 500 index fund invests in 500 of America’s largest companies. That means your money is spread across many industries.
• Strong track record: Over time, the S&P 500 has delivered average returns of about 10% per year.
• Low cost: Most S&P 500 index funds have very low fees compared to other types of funds.

Buying one is easy, too. After you open your IRA, just search for an S&P 500 index fund on your broker’s site and place an order. You don’t have to buy individual stocks or become an investing expert. You’re investing in most of the U.S. market at once.

Keep calm and invest on

Now might feel like a scary time to invest. But if you can look past the short-term panic, it’s actually a golden opportunity. Lower stock prices today could mean bigger rewards tomorrow.

Starting with an IRA and a simple S&P 500 index fund is one of the smartest moves you can make — even if you’re brand new to investing. The important thing is just to start.

The best time to plant a tree was 20 years ago. The second-best time? Right now.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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