How To Invest In 2024 - Index Funds

In our last video I provided a list of all the things you must understand before you invest in single shares, and made the point that the reason so many people lose money in the stock market is because very few people understand all that they need to. I then went on to explain how this need not matter, and should not prevent you from getting involved in stock markets, however...

…for the simple reason that you can BUY ENTIRE MARKETS.

Today - we look at how to do that. I explain what a stock market index is and then go on to highlight the fact that today there are investment funds available that enable you to invest in any index you might consider - most particularly "Exchange Traded Funds" or "ETFs" for short.

We cover some of the biggest of these: The S&P 500 in the US, and also a number of global indices which give you access to thousands of companies in one place.

I finish the video making the crucial point that, although the very long run returns of these stock market indices can really help you become wealthy, it is extremely important to understand that such things can and do crash every few years.

In our next couple of videos we will look at how to deal with this reality and at...
"...how to invest so that crashes don't matter".

We hope you find the video useful!
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Please note: Some of the links on this page are affiliate-links. This means that if you use them we will be paid a small commission by the relevant company. To be clear – there will be no additional charge for you if you do this.

Your capital is at risk when you invest. The value of investments and any income from them may fall as well as rise, the return may increase or decrease as a result of currency fluctuations, and you may not get back the amount of your original investment.

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[varietynews]

Came over from your talk conversation with savvy wallet, loved that video and loved this. You have gained an additional subscriber, very informative information love it 😁

[m-ps]

You explain things very clearly. Really enjoyed the video and will be watching more 👍

[alecwilkins]

Hi Andrew. Could I invest in both the FTSE all world etf and the S&P 500? Would this be a good idea?

[BaileyMxX]

Hi Andrew, just wondering when it comes to index funds specifically global, most are denominated in USD as currency for the entire holdings.

Just wondering your view on this and any form of currency risk especially over a long period.

Whilst the index itself would self regulate US holdings within the index what about the currency everythings held in.
If USD takes a big whack in comparison to GBP or vice versa and your future retirement depends on it.

Hedging currency is an option but just wondering your thoughts on it in general from someone more clued up on this stuff

Oh and I know anything you might reply with isnt financial advice, just wondering what your own personal thoughts on it are and your thoughts of it as a risk in the grand scheme of things. Not tailored directly to me or others ofc.

[nicfafa]

Here from your talk on savvy wallet😊, you are definitely my new found love, warren has had it almost all my life 😊

[sunilhpatel]

What are your thoughts on property investing?

[MarrakechRiadDarZaman]

Always good to get a no-nonsense refresher on this topic. ❤

[richardconnell]

Thanks for the very interesting video. It was clear and accurate, reflecting what you wisely say in your books. The information is important and stresses the importance of acting when possible due to personal circumstances.

[MonacoTrader]

Great video, best so far of the series. A question I have, which has caught me before: how do I avoid currency fluctuations when investing in global or US ETFs, which are denominated in USD? The ETF can increase in value and I get more USD, but if my main currency is EUR I could end up losing if EUR becomes stronger against USD.

[Davis_F]

Thorough and informative video as always, so thank you for that, Andrew.
Speaking hypothetically, if one has money invested in two relatively similar funds in a stocks and shares isa but on two different brokerage platforms, is it best to move all money into one of them or keep them where they are and focusing on consistenly further investing money only into one of them?
Secondly, if so, is it best to do so by drip feeding the money over gradually or doing a full transfer?
Once again, thank you for your commitment to the community of financially inclined folks.

[chqshaitan]

great video, cant wait for the next one

[Cophi_Bonsu]

Another epic episode as usual. Hi Andrew, if I have the Vanguard FTSE All World index, would you recommend having the iShares Core MSCI World also? Thanks

[tecknows]

I pulled out of Small/Midcap Markets, thank goodness as they have been giving negative returns for the past 4 months, and International Stocks as they started declining last month and taking away from my investments.

To add a point: 401(k)'s, regardless of what stock brokers say, is a great way to invest. I wanted to paste a picture of some stats here from some of them but YouTube doesn't allow that in comments apparently. A lot of my choices in 401(k) indexes provide everywhere from a 4% to 16% rate of return on average. The Small/Midcap and International/Developing Markets are all -0.6 to -3% on this day of July 6th 2024.

[Benj]

Fantastic video Andrew - Love how you're tapping into the YouTube space. My partner is a teacher and I think she should play your videos in school!

On a different note, can I ask what your views are on the South American Market? In particular, this fund for future growth;

ishares MSCI EM Latin America UCITS ETF USD (Dist) (LTAM)

Thanks
Benjamin

[NovaYung]

Excellent video as always, i am always reviewing your book(HTOW) as it's a crucial piece of knowledge and an excellent weapon for shattering false propaganda and the doom and gloom about finances today. i appreciate you for your service ENDLESSLY Andrew!!

[johndoh]

Great stuff again Andrew.
I so much look forward to your next video as asset allocation and sequence of returns is the key.
However, there is so, so, much difference of opinion on this I doubt anyone is right or wrong.
The old way was a 60/40 portfolio and that was that. Charlie Ellis strayed towards an 80/20,
Warren is to leave his wife a 90/10 and Nick Murray goes for 5 years worth of spending in a money market account and the rest in stocks. Forever.
Oh, its just so interesting.
I cannot believe that people “switch off” at the thought of finance and investing ( my wife is one of them)
Its about history, phycology, business etc.
And its by far the easiest way for the “ normal” guy, like me to participate in wealth creation.

[Bodz]

Great video. Im 45yrs old and have £28k left on my mortgage at 6%. Would you pay that off first. I have £1500pm to pay it off with so it would be paid off by Dec 2025 vs 2035 which is when its set to finish. Thanks mate.