This is a part of the Investing Series.
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Short answer:
In index mutual funds.
Just read this to see what the difference a little change in the Management Expense Ratio (MER) makes.
Stick 10% – 25% of your pay into index mutual funds, diversified over your country (for me, it’s Canada), the U.S., Internationally and in Bonds, and you’ll be fine.
Long answer:
I don’t want to flog a dead horse, but I’ve been reading about index funds and investing in them since 2006.
I am clearly not an investment guru, so I direct you to Mr. Warren Buffett, Rainmaker Extraordinare, who is universally accepted as being a smart, SMART guy about money and investing:
May 6 2007 (Reuters) – Warren Buffett said on Sunday most investors are better off putting their money in low-cost index funds…
“A very low-cost index is going to beat a majority of the amateur-managed money or professionally-managed money,” Buffett said at a press conference….
Buffett, worth $52 billion according to Forbes magazine in March, also said investors shouldn’t flock to increasingly popular hedge funds, where managers typically receive a fixed fee plus a percentage of profits.
“The gross performance may be reasonably decent, but the fees will eat up a significant percentage of the returns,” he said. “You’ll pay lots of fees to people who do well, and lots of fees to people who do not do so well.”
Source
Beauty.
Still not convinced?
Then read this book: Index Funds: The 12-Step Recovery Program for Active Investors.
(It’s only $3.16 as a Kindle edition!!!)
STILL not convinced? (OMG.)
Read this book: Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School.
Already convinced, are doing it, find it boring and want to learn about other investing strategies?
Then stick around.
