You got the money, what will you do?

Married couples, and young people trying to invest are wondering, how to start and where to put their money. Many people believe that keeping their money in a bank account is safe and secure, however there is a better route ahead. An index is a fund that allows you to invest money in many different companies without purchasing individual stocks.

Here are three reasons why you should put your money in an index fund

1.     You are securing your financial freedom by staying ahead of inflation.

2.     It is cheaper than investing directly in the stock market.

3.     Combining an index fund with an IRA enables your money to grow tax free.

Our number one recommendation is SPIAX Invesco S&P 500 Index. “SPIAX” is the ticker number that helps you identify the fund. The S&P is a group of 500 of the market’s biggest companies.

This index fund has a beta of 1.0 meaning it follows S&P almost exactly, this not only reduces risk, but provides a moderate return as well. Also, transaction fees and redemption fees are non-existent; this means that you can pull out money and put in money at any time. Also, this index has a sales charge that is a front-end load, this means that the manager takes a small percentage of your initial investment rather than the money you take out. Another feature of this fund is that after paying the initial investment of $1000 you can set it up a schedule that allows you to put extra change into the fund from the account. Finally, if you leave your money for 5 years in this fund you will receive a 15.5% return! If you leave it for 10 years you will get a return for 13.24%! An investment of $1000 today, would give you approximately $28000 in 10 years.

By using an index fund like SPIAX, you’re making your money work for you instead of working for money. There are many other index funds to research and invest in, but SPIAX is the one that we highly recommend you invest in.


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