Retirement Plans: Got Index Funds?
Retirement is something we all look forward to. But building up our retirement nest egg can be quite difficult.
There are so many investment choices to make…like mutual funds, ETFs, bonds, REITS, International funds and hundreds of other investment choices.
But there is one fund that is recommended by more successful investors than any other and that is…Index Funds.
What is an Index Fund?
Well an index is like the S&P 500, The Dow, Nasdaq or the Wilshire 5000. Each index is a group of stocks chosen to represent a certain portion of the stock market.
For example the Wilshire 5000 is all of the publicly traded companies in America. It’s like owning some of the best companies in our country. Another advantage is that the you get the returns of the overall stock market.
Also by nature the fees of Index Funds are significantly lower than actively managed funds.
It is no wonder why for every $5 invested in the stock market, $1 is going into index funds.
Consult your financial professional to see if it makes sense for you to include Index Funds in your retirement plan.