Quote:
Originally Posted by Amnorix
Focusing on the second paragraph -- I'd stick to low very cost mutual funds, which generally means index funds, or ETFs which are a type of stock which tracks a group of stocks. It's basically an even lower cost way to invest in an index.
The upside to ETFs is no fees. The downside is that dividends are not automatically reinvested.
For now, I'd go 50/50 with your money -- a total market index (which you already have) and a 500 index, which tracks the largest companies. The two are not the same by any stretch.
This is assuming you have a long investing horizon, of course (in other words, that you're pretty young, say under 40) and can stomach the bad year or three that will inevitably happen and just ride it out.
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I'm 27. So yeah I'm very long term.