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      02-07-2013, 01:13 PM   #9
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Quote:
Originally Posted by BMWFB02 View Post
For the experts in here, I have a question, I'm trying to start investing, I'm looking at an index fund with vanguard, ill start with S&P 500. I don't have enough time to keep up with the stock market and manage stocks personally. So I heard and read a lot about index funds being better than mutual funds. What do you guys think?
Not to pick on you, but honestly this is probably the most important thing you should spend about an hour a week on. Why because everyone who has ever said what you said we always surprised to find out they do not have as much money as they hope or though when they finally do check to see what is going on with their investments. It is like buying an investment property and never visiting it to see what you tenets are doing to it, only to find out they burned it down.

Others already point this out, it comes down to your risk level. I personally do not go into an index fund, not interested in making the average the total market delivers. When you look is are only a few good investment driving the average, if you focus on them you beat the average. So I have straight stocks, some focus mutual funds to spread the risk. I stay way from Bonds, not interested in financing bad spending decisions by our governments.

I also have REAs which kicks out some really nice dividend, it like owning real estate without having to deal with tenets and worrying about them burning down your property.

I do not have lots of time, but I have some amount of time to keep an eye on my money. My returns have been better then an index fund has returned