The Motley Fool

JANUARY 20, 2025

Mutual fund company Fidelity reports that as of the third quarter of 2024, over 540,000 participants in the workplace retirement plans it administers were sitting on million-dollar-plus stashes. Saving $3,000 per year in the same index fund for 35 years, however, would very nearly make you a millionaire. But don't sweat it.

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The Motley Fool

APRIL 28, 2024

It would have been much better if I had bought a broad-based index fund, like SPDR S&P 500 ETF (NYSEMKT: SPY). Thankfully, I didn't have a lot to lose When I started investing, there was no such thing as an exchange-traded fund (ETF), though Vanguard had by then popularized the index fund. Image source: Getty Images.

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The Motley Fool

DECEMBER 20, 2023

Yes, you could buy a stock, but a better option will probably be an index-based pooled investment product, otherwise known as a fund. Of course, before investing, you should probably create an emergency fund (in a bank account, CD, or other easily accessible but super safe account) with three to six months of living expenses in it.

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The Motley Fool

APRIL 25, 2024

The Vanguard 500 Index ETF (NYSEMKT: VOO) is one of the most popular ETFs (exchange-traded funds) , and for good reason. Vanguard made a name for itself by offering low-cost index mutual funds and later expanded its popular offerings to ETFs. The nice advantage ETFs have over mutual funds is that they allow for intraday trading.

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The Motley Fool

SEPTEMBER 19, 2024

There's a far better way to go about it and the first step begins with focusing on the right type of investment; in this case, a single Vanguard index fund. The Vanguard Balanced Index Fund is the foundation you need to learn What should I have done? This fund effectively buys two other mutual funds, one that tracks the entire U.S.

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The Motley Fool

DECEMBER 5, 2023

Vanguard is a massive investment management company, offering mutual funds, exchange-traded funds (ETF), 401(k) plans, and many other financial products and tools. The company's founder, Jack Bogle, popularized low-cost passive investing through index funds. Of the fund's $1.27 occurred on Jan. occurred on Jan.

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The Motley Fool

AUGUST 22, 2024

Where to invest your $1,000: a simple index fund So how, exactly, should you go about investing in the stock market with your $1,000 (or whatever sum you have)? Well, a simple, low-fee index fund is a fine choice -- perhaps one that tracks the performance of the S&P 500 index of 500 of America's biggest companies. Why index funds?

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The Motley Fool

FEBRUARY 24, 2024

Does it pay to keep funding your 401(k)? IRAs generally let you invest your retirement funds in individual stocks. With a 401(k), on the other hand, you're generally limited to a bunch of different funds, like mutual funds and index funds. The reason being limited to funds is problematic is twofold.

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The Motley Fool

JULY 22, 2024

Mutual fund company Vanguard Group reports that the average workplace-retirement account for clients aged 65 or older is only $272,588, while the median (or midpoint) balance for these folks is a much smaller $88,488. Your options are generally better now, with most plans at least offering one or two passively managed index funds.

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The Motley Fool

MAY 27, 2024

trillion in assets under management, Vanguard stands as an indomitable force in the mutual fund and exchange-traded fund (ETF) landscape. For many long-term investors, Vanguard's ETFs and mutual funds are the go-to choices, and there's a good reason why. These Vanguard funds are potent wealth creators 1.

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The Motley Fool

MARCH 19, 2025

And ironically, your highest-odds/best-payoff approach isn't trying to beat the market at all, but instead just aiming to match its performance by buying and holding simple index funds. This flexible business structure also means Warren Buffett can do what most mutual fund managers can't (even though they seemingly should).

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The Motley Fool

AUGUST 31, 2024

38% of mutual fund investors think they don't pay any mutual fund fees or expenses. Here's a very stark example, modeling hedge fund fees, which can be exceptionally steep, from the folks at Dividend Growth Investor: "If you invested $1,000 in Berkshire Hathaway in 1965, by 2009 your investment would have been worth $4.3

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The Motley Fool

MARCH 23, 2024

Mutual fund giant Vanguard has officially crunched the numbers. Because the younger you are, the more time you have until retirement, and time is your biggest ally when it comes to building a retirement fund. Most actively managed mutual funds meant to outperform the overall stock market don't actually do so.

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The Motley Fool

NOVEMBER 25, 2023

Image source: Getty Images Emergencies happen, and that's why every adult needs an emergency fund. Once you have yours fully funded, it's going to be a sizable amount. The most common recommendation on emergency funds is to save enough to cover three to six months of living expenses. You put it in an S&P 500 mutual fund.

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The Motley Fool

MARCH 28, 2024

Exchange-traded funds (or ETFs ) make this much easier to do by sidestepping the need for stock picking. Technology Select Sector SPDR Fund Technology stocks have a bit of a reputation for being volatile. Mutual fund company Hartford crunched the numbers. Just as the name suggests, the fund is based on the S&P U.S.

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The Motley Fool

JANUARY 23, 2025

The index fund is primarily invested in electric utilities (61%) and companies that provide multiple utilities (25%), though it also offers exposure to water and gas utilities and independent power producers. The average expense ratio across all index funds and mutual funds was 0.36% in 2023, according to Morningstar.

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The Motley Fool

JUNE 22, 2024

In many ways, Berkshire Hathaway is more like a mutual fund than a traditional company. If the way Berkshire Hathaway is run is the most important factor, much like it would be with a mutual fund, then you want to know a little more about CEO Warren Buffett. The key is to believe in the way the company is being run.

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The Motley Fool

JULY 27, 2024

Bitcoin (CRYPTO: BTC) investors might recall a fine Wednesday last January when the first exchange-traded funds (ETFs) based on spot Bitcoin prices hit the Street. The SEC eventually yielded to investor pressure and a torrent of ETF applications, approving the first funds based on Bitcoin futures in 2021.

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The Motley Fool

JUNE 19, 2024

One of the drawbacks of 401(k)s, in the eyes of some investors, is that they tend to offer a limited menu of investment choices -- perhaps just a dozen or so mutual funds or exchange-traded funds (ETFs). As long as your 401(k) offers one or more low-fee funds that meet your needs, you can be all set.

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The Motley Fool

SEPTEMBER 10, 2024

That's according to data compiled by mutual fund company and retirement plan administrator Vanguard in its 2023 look at all of its plans' participants. Lots of employers now use a default investment option -- usually a simple index fund -- for employees who don't request a specific fund allocation choice for their contributions.

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The Motley Fool

AUGUST 26, 2024

Exchange-traded funds (ETFs) are one of the best ways investors can build wealth. These funds are a lot like mutual funds with a key difference: You can trade them on the open market just like a stock. One of the most successful and largest fund managers is Vanguard, which offers 86 ETFs that hold $2.8

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The Motley Fool

MARCH 16, 2024

Rather, the SPDR S&P 500 ETF Trust is an exchange-traded fund (or ETF), which are just baskets of different securities. The fact that even professional mutual fund managers struggle to consistently beat the market should tell you everything you need to know about your chances of doing so. It is possible to do so.

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The Motley Fool

MAY 11, 2024

In many ways, Berkshire Hathaway is more like a mutual fund than a traditional company. To sum it up, given that Berkshire Hathaway is kind of like a giant mutual fund, the entire story here could change with a new manager at the helm. That's largely because of Warren Buffett's influence on the company.

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The Motley Fool

JUNE 3, 2024

In particular, people with net worths of $1 million or higher tend to have more of their money in the following: Stocks/mutual funds Real estate Business interests Those in the $10,000 and $100,000 tiers invest in those, too, but not nearly as much. Take the professionally managed hedge funds available to wealthy investors.

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The Motley Fool

DECEMBER 30, 2023

And here's his logic: "If you're making 12 (%) in good mutual funds, and the S&P is averaging 11.8 (%), and if inflation for the last 80 years has averaged four percent, if you make 12 (%) and you need to leave 4 (%) in there for inflation raises, that leaves you 8 (%). Let's say that you retire with $1 million in mutual funds.

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The Motley Fool

MAY 30, 2024

Read more: unlock best-in-class perks with one of these brokerage accounts Also, the way 401(k)s are funded could make it easier to keep up with your savings efforts, since contributions are made through automatic payroll deductions. Instead, that account gets funded before your paycheck even hits your bank account.

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The Motley Fool

NOVEMBER 21, 2024

The index fund is most heavily invested in electricity distributors (62%) and companies that provide multiple utility services (25%), though it also includes water and gas utilities, and independent power producers. That means the index fund moved 72 basis points (i.e., companies that come from the utilities sector.

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The Motley Fool

FEBRUARY 26, 2024

The biggest fees in 401(k) plans are often the investment fees charged by mutual fund companies. You should aim to avoid actively managed mutual funds with high expense ratios. Instead, opt for a low-fee index fund if your 401(k) plan offers it. A fund that charges 0.5%

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The Motley Fool

NOVEMBER 26, 2023

Professional fund managers get paid a lot of money to take charge of billions of dollars in assets for investors. Anyone can outperform 92% of active fund managers over the long run, and they don't need any special insights into the market to do so. By and large, active fund managers trade a lot more than an index fund.

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The Motley Fool

SEPTEMBER 22, 2024

Retirement plan administrator and fund company Fidelity reports that about 2% of the 23 million participants in its workplace retirement plans have million-dollar-plus balances. Max out your "free money" Most employers that offer 401(k) plans also will contribute additional funds to match some portion of their employees' contributions.

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The Motley Fool

SEPTEMBER 8, 2024

Investors appear to be increasingly interested in exchange-traded funds (ETFs) , or even individual stocks. Traditional mutual funds like the ones its investment company Franklin Templeton mostly manages appear to be falling out of favor. Most of this money is invested in ordinary mutual funds rather than exchange-traded funds.

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The Motley Fool

SEPTEMBER 27, 2024

Minimize your investment fees Most 401(k)s give you a choice between a variety of mutual funds or index funds your employer chooses. Most mutual funds charge expense ratios , which are listed as percentages in your prospectus. Index funds are a great low-cost investment option if they're available to you.

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The Motley Fool

SEPTEMBER 2, 2023

Many 401(k) plans are set up to automatically invest enrollees in a target date fund if they don't choose investments themselves. Target date funds are designed to help savers meet specific milestones. For some people, a target date fund is a good investment solution. If you don't, you might end up unhappy with your results.

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The Motley Fool

APRIL 22, 2024

The emergence of spot Bitcoin exchange-traded funds (ETFs) has opened up a new avenue for investors to enter the cryptocurrency market without the complexities of managing crypto wallets and navigating exchanges. Not to mention, my employer only allows access to those funds once a person is no longer employed by them.

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The Motley Fool

NOVEMBER 24, 2023

Such employer-sponsored plans aren't necessarily your best first choice for building a retirement fund, however. The bulk of them are managed by mutual fund companies, with most of those companies limiting your investment choices to their family of funds. There are reasons to select other savings options.

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The Motley Fool

JANUARY 22, 2024

Sure, you could choose one specific mutual fund over another in your 401(k). But you don't get to dictate what assets those funds actually invest in. Secondly, certain types of 401(k) funds are notorious for charging costly fees. Target date funds and mutual funds commonly fall into this category.

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The Motley Fool

OCTOBER 13, 2023

They give you a limited penalty-free withdrawal to buy a home If you're funding an IRA to have savings down the line in retirement, then it's generally best to leave that money alone until retirement. But remember, funds removed from an IRA can't enjoy investment gains. Not so with an IRA.

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