I would avoid recommending specific investments to someone without some basic knowledge in the field. That might lead to trouble down the read. Reading the Booglehead book about the vanguards might be of use.
I would avoid recommending specific investments to someone without some basic knowledge in the field. That might lead to trouble down the read.
This doesn’t make much sense to me. Investing in VTSMX over having money in a savings account probably has the highest ratio of additional return divided by effort involved, and is justified by two sentences and a question: “When you invest in a specific stock or fund manager, you’re betting that you know more about that vehicle than the whole market. When you invest in an index fund, you’re betting that the long term trend is up. Given the existence of Wall Street, which bet would you rather take?”
That is to say, one of the main reasons that sleep-at-night investing is so valuable is that you sleep at night. Set up automatic investing into your Vanguard fund, and you’re done. Knowing more of the philosophy behind it can help, and will make you less likely to panic and sell during a downturn, but the initial bump into an index fund is the main value-add.
Probably yes. But if you do not know the reasoning behind that chances are high that the first economic crisis makes you sell your stock at bad timing.
I would avoid recommending specific investments to someone without some basic knowledge in the field. That might lead to trouble down the read. Reading the Booglehead book about the vanguards might be of use.
This doesn’t make much sense to me. Investing in VTSMX over having money in a savings account probably has the highest ratio of additional return divided by effort involved, and is justified by two sentences and a question: “When you invest in a specific stock or fund manager, you’re betting that you know more about that vehicle than the whole market. When you invest in an index fund, you’re betting that the long term trend is up. Given the existence of Wall Street, which bet would you rather take?”
That is to say, one of the main reasons that sleep-at-night investing is so valuable is that you sleep at night. Set up automatic investing into your Vanguard fund, and you’re done. Knowing more of the philosophy behind it can help, and will make you less likely to panic and sell during a downturn, but the initial bump into an index fund is the main value-add.
Probably yes. But if you do not know the reasoning behind that chances are high that the first economic crisis makes you sell your stock at bad timing.