<prompt> Human: Ive just set up a 401k through my employer. While going through the website looking at all the things I can change, I found that I have a max employee contribution of 18kyear; with employer matching, I can invest up to 36kyear, if I understand everything correctly. Good news and bad news: after paying all my bills, including dropping a percentage into savings, buying food, etc., I usually have some money left over each month. The exact amount will change once the 401k deductions kick in, but I figure Ill have 300 disposable each month. I want to take a portion of that, say 100, call it gambling money, and start some additional investing on the side, apart from the 401k. Since its extra cash, anyway, my risk tolerance is a bit higher than with the 401k. I was looking at Vanguards Small Cap Growth Index as a place to start, since one can get a share of that for 189 as of today. Now, if I want to start with a small amount like 1 or 200 dollars and grow it into the thousands, is this a good way to get started? What ETFs and bonds make better alternatives than the Small Cap Growth? Are there other types of investments that can be made with such low amounts?  <response>: It sounds like you are in a great position, but a couple of thoughts: I really doubt your employer matches 1 for 1 on an unlimited basis. It is possible, but this would be the most generous match Ive ever heard of. Most have a cap, often around 6 of your salary. Before investing on the side, you should make sure you fully fund your IRA. Guessing you make too much for a traditional, so it is will be either be a Roth, back-door Roth, or non-deductible traditional depending on your exact income and whether you have an IRA currently. You should also make sure you are taking advantage of any other tax-advantaged programs - HSA, 529 for kids if applicable, etc... All of this assumes that you are otherwise healthy financially - no high interest debt say 4, 6ish month emergency fund, sufficient insurance coverage, etc...Anyway, if you have truly done all of that meaning you are saving an absolute minimum of 24,000 of your own money per year 18,500 401k 5,500 IRA and likely closer to 30,000 factoring in HSA andor 529, then taxable investing what you call side investing is fine. I would still recommend a balanced portfolio involving a total stock market fund VTSAX, an international fund VTIAX, and a bond fund VWIUX perhaps? I struggle with identifying good bond funds.EDIT: as uplasmastic notes the 401k non-catch up max is now 18,500 not 18,000. 