This is the best, most consistent strategy for the past 50+ years:
Step 1: Open an account. If you have a 401k, you already have a retirement account, probably with Fidelity. If you don’t have a 401k, Fidelity is still a fine choice. You could also choose Schwab or Vanguard. Don’t overthink it, though, because it doesn’t really matter.
Step 2: Put everything into $VOO.* Every time you get a paycheck, put some of it into your account and buy more $VOO.
Step 3: Don’t touch it. Don’t. I know you want to. I know you want to look at that number. Don’t. Don’t do it. I know you heard about trading options somewhere and you saw the posts of people who turned $10k into $10 million. That’s not going to happen. Don’t touch the money. Leave it alone.
Step 4: When you have enough money to live comfortably for the rest of your life, start selling it to buy bonds.
*Everything else you do might get more money, but it is worse on average. For example, you might be feeling smart, and decide that all these big tech stocks are overvalued. So you’ll buy $RWL instead. That might get more money, but it probably won’t. If you insist on doing something fancy, at least put most of your money in $VOO.
Put everything into $VOO.* Every time you get a paycheck, put some of it into your account and buy more $VOO.
VGT has been beating VOO for almost it’s entire existence. Higher volitility, but better long term results.
Everything else you do might get more money, but it is worse on average
That’s a real YMMV situation. If you want an easy way to guarantee around 10% ROI on your savings every year, no thinking required, VOO is great (VGT is marginally better, but not an enormous difference).
If you get into the weeds, actually learn what you’re investing in, find equities that are undervalued, and stay well diversified, you can do better than the market more often than not.
The big caveat is most people don’t know how to value equities. It’s difficult, complicated, it can carry a lot of risk, and it can be very stressful.
The other caveat is, you won’t do that much better. So if you aren’t working an eight figure+ fund, the difference between 10% ROI and 11% ROI won’t be worth the leg work.
This is the best, most consistent strategy for the past 50+ years:
Step 1: Open an account. If you have a 401k, you already have a retirement account, probably with Fidelity. If you don’t have a 401k, Fidelity is still a fine choice. You could also choose Schwab or Vanguard. Don’t overthink it, though, because it doesn’t really matter.
Step 2: Put everything into $VOO.* Every time you get a paycheck, put some of it into your account and buy more $VOO.
Step 3: Don’t touch it. Don’t. I know you want to. I know you want to look at that number. Don’t. Don’t do it. I know you heard about trading options somewhere and you saw the posts of people who turned $10k into $10 million. That’s not going to happen. Don’t touch the money. Leave it alone.
Step 4: When you have enough money to live comfortably for the rest of your life, start selling it to buy bonds.
*Everything else you do might get more money, but it is worse on average. For example, you might be feeling smart, and decide that all these big tech stocks are overvalued. So you’ll buy $RWL instead. That might get more money, but it probably won’t. If you insist on doing something fancy, at least put most of your money in $VOO.
VGT has been beating VOO for almost it’s entire existence. Higher volitility, but better long term results.
That’s a real YMMV situation. If you want an easy way to guarantee around 10% ROI on your savings every year, no thinking required, VOO is great (VGT is marginally better, but not an enormous difference).
If you get into the weeds, actually learn what you’re investing in, find equities that are undervalued, and stay well diversified, you can do better than the market more often than not.
The big caveat is most people don’t know how to value equities. It’s difficult, complicated, it can carry a lot of risk, and it can be very stressful.
The other caveat is, you won’t do that much better. So if you aren’t working an eight figure+ fund, the difference between 10% ROI and 11% ROI won’t be worth the leg work.
This is not true for 90+% of people who attempt it.
If you were born with an extra luck-bone, go for it. If not, $VOO and turning your brain off is a superior strategy.
I said 50+ years.