Experts say this is the easiest way for beginners to start investing

Investing may seem very complicated, and this complexity may paralyze Americans into doing nothing.

But investing — and doing it smart — doesn't have to be difficult. In fact, getting started can be relatively easy, according to financial experts.

Warren Buffett, Chairman and CEO of Berkshire Hathaway, famously said: “You don't need to be a rocket scientist. Investing is not a game where the guy with a 160 IQ outperforms the guy with a 130 IQ.”

For many people, investing is a necessity to grow their savings and provide financial security in retirement. Starting early in a career benefits the investor because there is a longer time horizon for interest and investment returns on the pool.

While appropriate long-term goals may vary from person to person, a rule of thumb is to save approximately 1x your salary by age 30, 3x by 40, and eventually 10x by 67, according to Fidelity Investments.

Target-date funds, known as TDFs, are the simplest entry point for long-term investing, according to financial professionals.

“I think it's a great, simple solution for beginner investors — and any investor,” said Christine Benz, director of personal finance and retirement planning at Morningstar.

TDFs are age-based: Investors choose a fund based on the year they aim to retire. For example, a currently 25-year-old who expects to retire in about 40 years may choose a 2065 fund.

These mutual funds do most of the hard work for investors, such as rebalancing, diversifying across many different stocks and bonds, and choosing a relatively appropriate level of risk.

Asset managers automatically reduce risk as investors age by reducing the equity stake in the TDF and increasing exposure to bonds and cash.

TDFs are a good starting point for “do nothing” investors seeking a hands-off approach, said Lee Baker, a certified financial planner and founder of Apex Financial Services in Atlanta.

“This is the easiest thing for a lot of people,” said Baker, a member of CNBC's advisory board.

Investors only need to choose their TDF provider, target year and investment amount.

Benz recommends choosing a TDF that uses underlying index funds. Index funds, unlike actively managed funds, aim to replicate the returns of the broad stock and bond market, and are generally cheaper; Index funds (also known as passive funds) tend to outperform their actively managed counterparts over the long term.

“You definitely want a negative TDF,” said Carolyn McClanahan, a CFP and founder of Life Planning Partners in Jacksonville, Florida.

Benz also advises investors to look for funds among the largest TDF providers, such as Fidelity, Vanguard Group, Charles Schwab, BlackRock or T. Rowe Price.

Investors who want to be more hands-on than TDF investors have other simple options, experts said.

Some may choose a targeted allocation fund, for example, Baker said. These funds are similar to directed investment funds, in that asset managers diversify between stocks and bonds according to a particular asset allocation – for example, 60% stocks and 40% bonds.

But this allocation is fixed: it does not change over time as it does with TDFs, which means investors may eventually need to reconsider their choice. They can determine which fund might be a good starting point by filling out an online risk questionnaire, Baker said.

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As another option, investors may instead choose a global market index fund, which is an all-stock portfolio diversified across U.S. and non-U.S. stocks, Benz said. As with target allocation funds, these funds do not reduce risk with age.

“I think novice investors sometimes question the simple elegance of some of these very powerful options,” Benz said. “People crave something more complex because they assume it should be better, but it isn't.”

Young, long-term investors should generally make sure their fund — whether TDF or otherwise — has a high allocation to stocks, about 90% or more, said McClanahan, the CNBC advisory board member.

Retired investors under 50 would likely be well-suited with a portfolio leaning mostly toward stocks, with some cash reserves set aside for emergencies such as job loss or health issues, Benz said.

One caveat: McClanahan said investors who are saving for a short- or medium-term need — perhaps a home or a car — would likely be better off putting allotted funds in safer instruments like money market accounts or certificates of deposit.

The easiest place for long-term investors to save is in a workplace retirement plan such as a 401(k) plan. Those with an employer match should aim to invest at least enough to get the full match, McClanahan said.

“Where can you get 100% of your money?” She said.

Investors who can't access a 401(k)-type plan can instead save in an individual retirement account — another type of tax-favored retirement account — and set up an automatic deposit, McClanahan said.

TDF investors who save in a taxable brokerage account could be hit with an unexpected tax bill, experts said. Because target mutual funds regularly rebalance, there will likely be transactions within the fund that trigger capital gains taxes if they are not held in a tax-advantaged retirement account.