Posts Tagged ‘insight’

clarification on index funds?

I’m 19 years old and trying to plan for my future. I’ve been trying to do research on things to invest in and originally i went into this looking into buying a mutual fund. most of the information i found said that mutual funds arent the way to go but index funds are where its at. Ive been looking into this "VTSMX" fund but I just don’t understand how i’ll really make money with it long term. I just don’t understand how its a good long term investment. The stock market goes up 2 out of every 3 years i read somewhere but it seems like like it takes 2 years to recover from how long it got at one point. so how do I make money on an index fund when it just platues. As far as the fund is concerned it went to 35$ at one point and then came back down to 14 and then continued to rise to 38 again. I guess I just don’t quite understand and have alot more learning to go. any insight would be wonderful


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Index funds cannot go to zero ?

Index funds cannot go to zero ? Am I right ? e.g. take the S&P 500 ETF index for SPY.

There are 500 stocks in SPY. Should one stock declares bankruptcy or gets de-listed, it is removed from the index fund SPY and a new stock will be added.

So I think even in a bearish market, the price value of SPY or any index funds including Dow Jones, Hengseng, Nekki, etc will never have a price value of zero.

Should any stock(s) in anyone of these index funds goes belly up, the stock(s) just gets removed or de-listed from the index and a new stock will be added.

Am I right ? Or am I missing anything ?

Even if we have the worst case scenario similar or more devastating than the 1929 market crash, the price of any Index Funds cannot go
to zero value.

Please comment and give me your insight.

Thanks in advance


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Can I have a Roth IRA at Vanguard with the S&P 500 Index Funds?

I know I should call them but before I do I was hoping I can get some insight from you guys.. I need to invest in a Roth IRA but I also want to do have an Index Fund like the S&P 500 on the same account. Any advice is appreciated. Also looking into TRowe Price. Thanks everyone.


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Can I have a Roth IRA at Vanguard with the S&P 500 Index Funds?

I know I should call them but before I do I was hoping I can get some insight from you guys.. I need to invest in a Roth IRA but I also want to do have an Index Fund like the S&P 500 on the same account. Any advice is appreciated. Also looking into TRowe Price. Thanks everyone.


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