How To Become A Millionaire: Index Fund Investing For Beginners

Index Fund Investing for beginners: This is one of the best investments that requires very little work, almost no skill, and has some of the best overall returns. Here’s why - enjoy! Add me on Instagram: GPStephan

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What IS an index fund?
An index fund is basically just a group of investments that you can invest your money into, and then you’ll own a small percentage of the entire thing. Index funds track the entire market as a whole, rather than one specific stock.

Why Invest in an Index Fund: They have very low fees.
This is because indexes are very simple to put together, very simple to manage, there isn’t much overhead, and those savings get passed on to you. This is also what’s known as a PASSIVELY managed fund. You’re getting an entire portfolio of stocks that automatically gets balanced and adjusted over time, without doing any work, and you pay as low as 0.04% annually.

This is the opposite of a MUTUAL FUND, which employs professional stock pickers who aim to generate market-beating performance. However, the additional overhead expense associated with this, as well as the fees incurred by buying and selling, ultimately gets passed on to you, as the investor, in the form of higher fees. And that is WITHOUT the guarantee of actually beating the market.

Second Advantange: The majority of investors will get a HIGHER return long term with an index fund than they will by investing in individual stocks on their own.
Several studies have suggested that over 92%-95% of portfolio managers could not out perform the market index over a 15-year period. And these figures are SO MUCH WORSE for the average individual investors.

Third Advantage: Diversification.
Even if you have 20 individual stocks in your portfolio, one of them dropping in price could cost you a lot of money. On the other hand, if you buy the SP500 500 index fund, your investment will depend on 500 different stocks, only three of which account for more than 2% of the entire index. This means having a few companies go down or up won’t make a huge difference in your portfolio, but you get the advantage of riding the entire market as a whole as they rise in value over time.

Fourth Advantage: It’s easy.
I also acknowledge that I am not a stock market expert. I cannot buy and sell stocks that will consistently beat the market long term, nor do I have an interest in spending that much time watching stock charts and reading news so I can make the proper decisions.

How to do this:
My favorite index fund investing method is called THE THREE FUND PORTFOLIO:
* US Stocks: Vanguard Total Stock Market Index Fund (VTSAX)
* International Stocks: Vanguard Total International Index Fund (VTIAX)
* Bonds: Vanguard Total Bond Market Index Fund (VBTLX)

That’s it. This gives you the broadest diversification at the absolute cheapest cost. Not only that, but because you’re investing in multiple asset classes, you’re diversified through three mostly uncorrelated markets, and that protects you against any swings from one individual market.

Sources:
TIME IN THE MARKET beats TIMING the market: Charles Schwab.

Warren Buffet Millionaire Bet:

Beating the market:

My ENTIRE Camera and Recording Equipment:

[diane.moore-]

As an investment enthusiast, I often wonder how top level investors are able to become millionaires off investing. I do have a significant amount of capital that is required to start up but I have no idea what strategies and direction I need to approach to help me make decent returns

[Americanpatriot]

I recently inherited almost $500k. I REALLY need to make this money work for me, and not just disappear over time. I've been scrambling for somewhere to put the money, where I can make an effort to use the gains to pay bills so I can quit my job . All roads have pointed to the financial market of some sort which is a good idea buh where else should I put money besides the financial market?

[Yang-vfym]

So glad I found this at 5. I'm going to invest my $2 from the tooth fairy.

[tahirisaid]

The quickest way to make your first millions is to invest directly with an expert that is trustworthy and has made a name and individual billionaires. I realized that the secret to making a million is making better investment.

[Captain_Tiger]

Probably yr best video. Not because of the advice..but because you broke it in simple language to spoon feed us..amateurs. Well done.

[donnyjackson]

How to become a millionaire?.... Binge watch Graham videos and do as he says.

[mikesmith-itbt]

Recently started out an investment manager and it turned out to be exactly what I was looking for. When I look back, 😢 On over 150k my rate of return 3/1.5 % on buy & hold. Disaster. Long story short I wish I could have took this path long ago. The positioning is just different and I know that this will get me on the right track.

[stjepanhauser]

Year-over-year inflation stood at 6.5% in December 2022—the lowest that figure has been in more than a year. Inflation was in line with what economists expected and gave many of them a reason to believe that the peak of inflation may be behind us. I have approximately $150k stagnant in my port_folio that needs growth. What is the best way to take advantage of this downturn?

[rjtteqx]

Aftet watching this video. I immediately did 3 things.
1. Liked
2. Subscribed
3. Stopped funding my active stocks and switched to index funds.

[theresagarcia]

As I would see it, the go to solution for climate this downturn and high expansion is momentary exchanging, rather than long haul exchanging, most people utilizing these methods are netting a lot of gains, sure the dangers are higher yet once more isn't the ongoing business sector similarly as unsafe?

[oar]

So glad my mom listened to this while I was in the womb. “You know what they said, invest in the womb and die in a diamond tomb” - Graham “Buy and Hold” Stephan

[Fausto_moh]

21 and opened my vanguard and bought an index fund just a day ago.

[Thompson]

Legends to embrace if you want to get rich investing Stephen and Gary Joe Wilde. Unfortunately, don't know why Gary chose not to own a video channel here like other pros. He is long-established and very advanced in the field.

[totalfinance]

"It is not necessary to do extraordinary things to get extraordinary results."

- Warren Buffett (on Index Funds)

[roadapplesnapple]

21 and I want to start learning these things.
I want me and my family to live our best lives & I genuinely wish the same for each of you.

[fge]

I've watched many a snake oil video and get bored with all the ones trying to sell their brand of kool-aid. I listened to this young man for ten minutes and actually got some useful information. Keep it up!

[thymythymyth]

So glad I found this at 67. I’m going all in on AMC and GME, and not selling for two decades.

[tanjac.thomas]

We work for years to have, $1million while some people I know put thousand of dollars in some meme coins and they are millionaires.

[raycamm]

he just slips that "smash that like button" like its no one's business. Well done sir.

[akin]

Could you do a video on Vanguard vs Fidelity vs Charles Schwab?