The scariest part of investing isnt wondering if you have enough money or watching your savings diminish.
When my husband and I started thinking about retirement last year, we were in the same place.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
Whats So Great About Low-Cost Index Funds?
You may have heard of the S&P 500 or Dow Jones Industrial Average.
Those areexamples of indexesthat index funds have a go at match.
The Fees Are Really Low.
The goal is to pay as little in investment fees as possible.
Index funds have some of the lowest fees of any investment vehicle.
Robert Farrington from TheCollegeInvestor.com helps millennials navigate investing for the first time and loves index funds for that reason.
One of the biggest things that erodes your investment gains is fees.
The less fees, the more money you might keep in your pocket, he said.
And youve heard of Warren Buffett, right?
That famous businessman who invests for a living and has a net worth of over $84 billion?
Because index funds arent actively managed, the fees associated with them are super low.
With low fees, more of your money can compound interest compared to actively managed funds with higher fees.
Erik Tozier, fromThe Mastermind Within, prefers index funds because they provide instant diversification for any portfolio size.
Its unfortunate, but its a fact that some companies will fail.
Its also a fact that some companies will outperform others, he said.
So if one company fails, its backed up by many more successful companies.
And on average, youll trend with whatever index your fund is tracking.
After all, theres always someone willing to bet that they can beat the market average.
And because the funds are so broad, youdont need many to diversify.
The easiest place to start is in yourtraditional or Roth IRA.
Youll want to look for fees that are less than 1%.
Your 401(k)may have more limited options.
We cant personalize articles for our readers, so your situation may vary from the one discussed here.
Jen Smith is a former staff writer at The Penny Hoarder.
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