You are using an older browser version. Please use asupported versionfor the best MSN experience.

The smartest way to invest your first $1,000, according to a wealth manager

Man wins $344M Powerball jackpot using fortune cookie numbers

A North Carolina man has a massive new fortune thanks to a cookie. Charles Jackson is the winner of the more than $344 million Powerball jackpot the largest lottery prize in North Carolina history. The 66-year-old opted for the $233 million lump sum. The retiree said hes been playing numbers from a fortune cookie.

Pfizer had clues its drug could prevent Alzheimers. What happened?

The companys rheumatoid arthritis drug appeared to reduce the risk of getting Alzheimers disease by 64 percent. The Washington Posts Chris Rowland explains why Pfizer did not pursue it.

Watch Bernie Sanders press Walmart over starvation wages

Senator Bernie Sanders (I-VT) introduced a Walmart shareholder proposal to give workers a seat on the board and called on the giant retailer to raise its minimum wage to $15 per hour. While the measure may not pass, Sanders is trying to win working-class votes to win the 2020 Democratic presidential nomination.

Wealth expert: Here are the smartest places to invest your first $1,000

Wealth expert: Here are the smartest places to invest your first $1,000

Man wins $344M Powerball jackpot using fortune cookie numbers

Pfizer had clues its drug could prevent Alzheimers. What happened?

Watch Bernie Sanders press Walmart over starvation wages

The 2 forces pushing and pulling at Trumps economy

Los Angeles: A city with 58,000 homeless and one house on the market for $500M

See inside Jeff Bezos new $80 million NYC apartment

Trump scuttles US cruises to Cuba in clampdown

How $100,000 custom pool tables are made for celebrities like Justin Bieber and Taylor Swift

Surprising reasons why US drug prices are higher than the rest of the world

Mortgage application volume rises, driven by refinances

Can I protect my money if I go into a nursing home?

NYC company brings caviar into the mainstream

How to save for retirement and pay your student loans at the same time

What to expect for the future of Social Security

Suzy Welch: The life-changing lesson Warren Buffett taught me at a dinner party

Investing is one of the most effective ways to build wealth. Some experts even say that the only way to truly grow your money is to put it to work.

If you have an extra $500 to $1,000 and are ready to dip your toe into the markets, you should put your money in just one thing: the S&P 500, certified financial planner Peter Mallouk tells CNBC Make It.

The S&P 500 index fund holds 500 of the largest companies in the U.S., from Google to Disney to ExxonMobil. It allows you to take advantage of the success of major corporations without the risks associated with buying individual stocks.

Its the lowest cost investment that exists, says Mallouk, who is the president of wealth management firm Creative Planning. You can buy it at a discount custodian, like a TD Ameritrade, Fidelity or Charles Schwab, where the trading fees are exceptionally low. And with those 500 stocks, you now own about 80% of the market capitalization of the entire United States. In other words, an S&P 500 fund covers about 80% of the U.S. stock market, so its an easy and affordable way for investors to capture core U.S. stock market performance.

Plus, you have global exposure, Mallouk says, because these companies get a lot of their earnings overseas: McDonalds has shops in China, and Walmart has locations in Europe. So you wind up with a low cost, diversified portfolio thats invested in the global economy.

Chairman and CEO of Berkshire Hathaway Warren Buffett agrees with Mallouks recommendation.

It has been a tough time to beat the S&P,he told CNBC earlier this year, adding: I think its the best investment because most people dont know how to pick stocks. And, most of the time I dont know how to pick stocks.

Mark Cuban also champions index funds: In a 2017 interview with Hayman Capital Management founder Kyle Bass, the business titansaidthat if you dont know much about markets, the best way to invest your money is to put it in a cheap S&P 500 fund.

At the end of the day, an extra $1,000, if managed correctly, can go a long way, Mallouk says: If you put $1,000 in the S&P a little over 10 years ago, today, youd have more than $3,000. Even if we go back before the 2008 crisis if we go back 11 years still, youd have more than tripled your money.

Dont miss:Mark Cuban: Heres the best way to invest your money right now

Like this story?Subscribe to CNBC Make It on YouTube!

You can make 25 times as much interest on savings with Wealthfront

Mark Cuban: Big name colleges arent always worth the priceheres why

How to avoid 3 common but annoying airline fees