Originally Posted by La literatura
Thanks. The index funds is something I understand in theory, but not really in practice. I was initially planning on one total market index, but your advice is that several 500 or 3000 or 5000 indices is better? (presumably, for the diversification principle)
Here are a few indexes to look at:
S&P 500 - broad based large cap US index
Russell 3000 - index of small cap US stocks, bit more risky than S&P
MSCI-EAFE - international index covering developed countries outside of the US
MSCI Emerging Markets - index covering the emerging markets outside of the US (Brazil, Russia, India, China, etc)
There are also several different fixed income index funds you can look into.