Everyone should be investing in some capacity if they can. Whether it’s through a 401(k), a Roth IRA, real estate with help from Fundrise, or just a personal brokerage account, investing is one of the best things you can do for yourself!
Investing in index funds is simple and extremely hard to mess up, which makes it great for beginners. Once you buy a few (or even just one) index funds, you can “set it and forget it”… for the most part.
Index funds are affordable for a few reasons, but mainly because they have low expense ratios. We’ll focus on comparing costs to classic mutual funds since that is the index fund’s “main competitor” so to speak.
Last, but certainly not least, the index investing strategy has been proven to work over the years.The S&P 500 (an oft-cited index) has historically returned +7% annually. $10,000 invested today would be worth $138,426 in 40 years at that rate (also assuming a 0.03% expense ratio).