Originally posted by Lanny
1. Collect money
2. Drop it in a mutual fund that has an appropriate risk profile
3. Don't think about it again and focus on collecting more money
Most people who trade on the side don't come close to their hourly rate while exposing themselves to a lot of risk. It's hard to invest better than a fund manager who's spending all day every day with many other people making investments based on actual knowledge of markets.
Post last edited by Lanny at 2017-04-25T07:12:01.003374+00:00
Originally posted by Malice
No, don't use a mutual fund, use a low fee S&P index fund.
You're both right. I tend to favor ETFs over mutual funds, but most of what I have are index funds. The S&P is good, but diversifying with other indexes to tilt your portfolio to value or growth is also good. The key is to establish an asset allocation, stick to your plan, consistently invest (dollar cost average), and don't forget to rebalance.
