“Amazon, all time high”, “Tesla, all time high”, “Apple, all time high”!
Or, you know a guy who knows a guy who invested in this company and made a few thousand dollars overnight, right?
I get it, every time you turn around you hear about stocks hitting all-time highs, or investors making quick money and you, understandably so, want in on that action!
You have your list of well-known companies you plan to invest in and can’t wait to buy as many stocks as you can!
Sure, you can make some money with stocks, but trust me, (especially those new to investing), you can lose a lot of money too!
On the flip side of things, the safer option is to just kick back and let an index or mutual fund work for you.
Because index and mutual funds are made up of several different stocks, you carry a lower risk, while still enjoying favorable returns and diversifying your portfolio at the same time.
I encourage new investors to invest in a fund that tracks the S&P 500. VOO and SWPPX are the two I recommend most commonly.
Below is a snapshot of VOO’s performance over the last 5 years.
YTD it is up almost 12% and has an expense ratio of just 0.04%.
Personally, I invest pretty heavily in PRGTX. This is a growth fund that invests heavily in the tech sector.
YTD it is up just over 38% and has a very favorable history over the last 10 years!
Whatever funds you choose, try to choose funds with at least 5 years of history. After that, kick back, relax and let your money work for you!
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