Imagine that you could own the most profitable companies in the world. What would you do if you had the chance to partner with successful entrepreneurs like Jeff Bezos, the founder of Amazon, Larry Page and Eric Schmidt, the brains of Google, and Michael Bloomberg, whose information business revolutionized Wall Street?
Perhaps your interests lie more in the future, especially the possibility of space travel and new worlds as envisioned by Elon Musk and Richard Branson. Did you know the opportunities to hitch your financial future to a collection of economic and technological geniuses exist today?
In the late 1980s, a new investment type appeared that leveled the playing ground for everyone. For the first time in history, the average man or woman did not need specialized expertise, high-placed connections, or a massive net worth to participate in investments with the same terms and benefits as the Wall Street tycoons.
Whether you are young or old, male or female, have a college degree or not, you can enjoy “Financial Independence through Index Funds.”
Table of Contents
An Investor’s Dilemma
The option of Index funds eliminated one of the more difficult tasks of those who are new to investing: deciding where to invest.
Radio and television broadcasts, Internet websites, books, and magazines are filled with investment advice and recommendations, each suggesting that their opinion or system is best.
Many of their suggestions come with supposed guarantees – generally refuted in the small print – of immediate and consistent riches.
Others require minimum investment amounts higher than a beginning investor’s financial capability. Some are based on extraordinary, complex research well beyond the ability of the average investor to validate. Therefore, investors must rely on the proverbial admonition, “Trust me. I know what I am doing.”
The Benefit of Passive Investing
Everyone who has worked at a job has daydreamed about having an income that is not dependent on their effort, time, or worry.
Despite admonishing our children when they want something extravagant, we secretly wish that trees that grow money untended or the geese that give golden eggs were real. Sadly, there are no trees or birds that produce wealth without effort on the part of their owners.
Fortunately, investments can grow to the point that they can replace earned income – the money you are paid for a job – after a period.
Consider the case of hypothetical John B.
John started a retirement account at age 35 with his employer in 1980, investing $100 each month in a portfolio of stocks that closely tracked the S&P 500 stock index. Over the next twenty years, he continued to invest $100, not thinking or worrying too much about the account.
At the end of 2000, John took early retirement and turned his woodworking hobby into a small home-based business. It was successful, bringing enough income each month to support his wife and him in comfort.
John quit contributing to the monthly retirement account when he left the company but decided to leave the account unchanged since he did not need the funds.
When John retired in December 2000, his account had been worth $130,154, a substantial increase above his twenty-year investment of $24,000.
By the end of 2019, John was ready to fully retire and travel with his wife in their golden years. He closed the woodworking business and was ready to finally cash in the retirement account. To surprise and pleasure, he discovered the investment was worth $299.467, more than doubling since his last $100 investment twenty years previously.
Not everyone has the same experience or the same history of investing. Some have invested higher amounts for more extended periods with greater and lesser results. Nevertheless, thousands of people like John have discovered the benefits of passive investing, their own money tree.
Our Position on Investing, Index Funds & Advice
We maintain this website because we believe that:
- Financial independence is a primary contributor to individual happiness. Every person has personal aspirations for themselves, their children, their community, and their country. Being free of the worry over financial matters reinforces the accomplishment of goals and dreams.
- Financial security is achieved by saving and investing over long-term periods and appropriately managing risk. In the short term, all investments are volatile, with prices fluctuating up and down in response to investor emotions. Over periods of five years or more, logic resurfaces, and prices reflect the underlying economic values. Index funds are best suited for people with an investment horizon of 10 to 20 years. Start as early as possible, continue investing regularly, and let the time and history work for you.
- All investments have risks, so there is never a guarantee that returns will be as anticipated. We believe that risks should be managed by appropriate risk reduction techniques, including diversification and dollar-cost averaging. Before making any investment, we recommend that each investor seek the advice of a Certified Financial Planner (CFP) before investing in an index fund.
- Trying to select an individual company for investment or forecasting future price trend continuation or reversals is a losing strategy for most investors over any significant period. We especially discourage the practice of “day trading.”
- Index funds are unique because they allow investors to participate in specialized, passive portfolios of securities designed to produce similar results as an identified market index. Most charge minimal management fees.
- Investment expertise is developed through study and experience. We intend to present regular articles and blog posts about all financial planning subjects, including budgeting, investing, taxes, estate planning, and everything related to index funds.
Final Thoughts
We hope you will consider how investing can change your life by making your dreams come true through index funds. We are committed to providing unbiased, professional advice from a corps of informed, experienced investors who once stood in your shoes, wondering, “What do I do now?”
The Website
Our website is owned and managed by Ebookuity Publishing. A duly licensed business in the Philippines.
Address:
K5 Alchemy Unit, OpenSpace Building, 50th Esteban Abada Street, Loyola Heights, Quezon City, 1108.