Index fund advice, please.
June 15, 2008 5:54 PM Subscribe
Should I put my savings into an index fund? If so, how?
posted by JamesJD to Work & Money (20 answers total) 47 users marked this as a favorite
I have about $25,000 in savings, and I don't know all that much about investing. I'm looking to invest the money over a pretty long period of time (20 years or possibly even longer). I should also mention that I'm pretty young.
One thing I have heard time and again is that index funds are usually a pretty good bet (and that they almost invariably beat mutual funds) for anyone who doesn't want to invest actively because (a.) they're about as diversified as it gets (b.) the fees are lower since they aren't actively managed.
Here's what I'm wondering:
(i.) I've heard there are different types of index funds. Where can I learn about which type to pick?
(ii.) Once I've picked one, how do I go about putting my money into it?
(iii.) Are there any reasons why investing mostly in an index fund might be a bad idea?