Index fund

[italianmaxxer]

Does anyone have good knowledge about index funds ? Should I invest in it ?

 

[NZb6Air]

Should I invest in it ?

Yes

 

[sirmimbing]

its basically guaranteed money but dont expect crazy returns. it's a good thing to put your money into long term but you'll probably get more out of investing into yourself, aka expanding your knowledge etc if you dont have a lot of cash. only invest into it if you've got 10k+ i'd say

 

[italianmaxxer]

its basically guaranteed money but dont expect crazy returns. it's a good thing to put your money into long term but you'll probably get more out of investing into yourself, aka expanding your knowledge etc if you dont have a lot of cash. only invest into it if you've got 10k+ i'd say

how does it work? does cash accumulate over time? is it worth it to put in it a couple of hundread euros? im 19 so plenty of time to rise money up

 

[Kelly Oubre Jr]

how does it work? does cash accumulate over time? is it worth it to put in it a couple of hundread euros? im 19 so plenty of time to rise money up

an index fund is a collection of stocks, putting 200 in is useless, you wanna be putting thousands a year, its for people who are trying to retire at like 50 instead of 70

 

[sirmimbing]

how does it work? does cash accumulate over time? is it worth it to put in it a couple of hundread euros? im 19 so plenty of time to rise money up

basically it tends to give you around 10% returns per year. so if you put in €100 you'd get €110 after a year. and 110% of 110 would be 121. 110% of 121 would be 133 etc.

this means that your money will grow exponentially since you will make 10% on the free 10% you already made and so on. so if you put in lets say €10000 every year, then it can add up to something substantial pretty quickly since you get 1000 then 10% of that 11000 and so on. But if it's just a few hundred then you wont make much. Focus on finding skills that pay more first.

 

[italianmaxxer]

basically it tends to give you around 10% returns per year. so if you put in €100 you'd get €110 after a year. and 110% of 110 would be 121. 110% of 121 would be 133 etc.

this means that your money will grow exponentially since you will make 10% on the free 10% you already made and so on. so if you put in lets say €10000 every year, then it can add up to something substantial pretty quickly since you get 1000 then 10% of that 11000 and so on. But if it's just a few hundred then you wont make much. Focus on finding skills that pay more first.

Is it better to increase the investment over time like 300 a month or just put in it like 2000 now and 2000 more at the end of the year and so on

 

[sirmimbing]

Is it better to increase the investment over time like 300 a month or just put in it like 2000 now and 2000 more at the end of the year and so on

Investing a bit regularly over time is called dollar cost averaging and is less risky than investing all at once, especially if you don't really know what you're doing.

But honestly I'd prioritize learning skills or building a business that can make you more money, rather than investing a few hundred if that's all you got. Investing into yourself will yield better returns than any stock or fund.

 

[italianmaxxer]

Investing a bit regularly over time is called dollar cost averaging and is less risky than investing all at once, especially if you don't really know what you're doing.

But honestly I'd prioritize learning skills or building a business that can make you more money, rather than investing a few hundred if that's all you got. Investing into yourself will yield better returns than any stock or fund.

Mhhh, but let’s say I have a job and i spend more than half of the salary in hardmaxxing,+ I put every month in an index or ETF the rest amount and at the same time I keep going to uni to get my bachelor, isn’t that not bad , also cause if I don’t invest in this funds now in 10 years it’s gonna be too late, if I start now at basically 20, when I’m going to be 50, the amount of money that it generated will be considerable, and anyway I can start invest money in a fund and if I don’t won’t to continue I can just stop don’t u think?

 

[sirmimbing]

Mhhh, but let’s say I have a job and i spend more than half of the salary in hardmaxxing,+ I put every month in an index or ETF the rest amount and at the same time I keep going to uni to get my bachelor, isn’t that not bad , also cause if I don’t invest in this funds now in 10 years it’s gonna be too late, if I start now at basically 20, when I’m going to be 50, the amount of money that it generated will be considerable, and anyway I can start invest money in a fund and if I don’t won’t to continue I can just stop don’t u think?

It's always a good idea to invest money you have left over and don't need into some income-generating asset, yes. All I'm saying is that if the capital you have available isn't very large, then neither will your returns be.

 

[italianmaxxer]

understood. do u think an ETF or index fund is better? IMO an index fund is better cause i dont plan to be active in it. What broker do u think i better fidelity, charles shwab or Vangaurd? SWPPX doenst have a minimum ammount required to enter so i think im gonna use charles swab with this SWPPX