What The Heck Is An Index Fund?

Despite only promising "average" results, index funds have become one of the most popular choices for the majority of investors.

Two Cents on Twitter: @twocentspbs

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Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.

Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
Directors: Katie Graham & Andrew Matthews
Written by: Andrew Matthews
Executive Producer: Amanda Fox
Produced by: Katie Graham
Edited & Animated by: Sara Roma
Images by: Shutterstock
Music by: APM

SOURCES:

[PremSteve-ygde]

I like investing in close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares on a monthly basis or whenever you can afford to. This can be easily done because close-end funds are bought and sold on the stock market like regular stock. That’d be enough to create a portfolio that would pay you between $50k to $70k in dividend income

[RangerRuby]

How on earth is all this information free? Am I a nerd for saying I genuinely found this video interesting? It made total sense and I had fun watching it.

[nickolas]

This channel is perfect for lowering the barrier to entry on financial literacy. You should try to advertise it to schools nationwide!

[ChristopherAbelman]

I feel investors need to be focus on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.

[sloketamang]

Before this channel i always used to zone out when people talked about finance, now i can actually give MY two cents. xD

[ChrisInvests]

I always recommend index funds and ETFs! They are probably the easiest way anyone can build wealth 😀👍

[lu]

"Aiming for average might be the best strategy of all"

That's what I wish she said :'(

[hagenherrmann]

correction:
the fund has to make 1.4% plus the rate of inflation, just for the investor to not lose money! that would be

[brentsievers]

I've said it before and I'll say it again: Best channel on the Tube

[syedsufiyan]

I want Orlando to be my fund manager!!make it happen!!

[raychristopher]

We are already in a big crash Inflation is a catastrophe. This CPI report is a colossal failure. To bring the housing market to a halt, the FED will have to pull all the stops. The unfortunate issue is that other markets are being decimated. If you want to stay green, you have to rely on a lot of diversification. Currently up 14% and being careful. Still a better deal than leaving it in a savings or checking account yielding 0-1 percent interest.

[Bubbasizer]

I love the simplicity of index investing. From buying to selling all from your own home within minutes.

[AlexS-ojqf]

I asked PBS for more funding for this channel on the quiz you give us a few months ago lmao

[Will-jgzs]

I swear, Phillips mustache grows more and more by the week.

[sky]

Prenuptial/Postnuptial agreements would be a great topic to touch on!

[Jeff-qxfr]

Love your videos!!
Can you do a video explaining employee stock purchase plans? I get it as a benefit for working for my employer and I just don’t know how it exactly works! Thank you!

[UnboxMaster]

Thank you so much for posting this


I was quite curious about it for a while...

[death]

holy shit julia looks so different at the ending segment. I thought she was a different person!

[ballzock]

I learn more from you guys than I do in school. I love how you simplify the lesson instead of using so many complicated terms. The presentation is very basic appealing. That helps me focus.

[junatanne]

Just want to inform you, the link for Serving Up Science brought me to an old channel of theirs, I think. Cause I tried to doddle around and found PBS Food channel. Have the same host and theme. I think that's their channel now. Just fyi.
Love this vid btw. Julia is more blooming than usual. Thank you guys for all the finance info help.