Trent over at The Simple Dollar has a great article up about beginning his investing in mutual funds…index funds to be exact. He outlines his fears as to why he has not been in them before, how we went about making his decision, and the fund that he ended up going with.
We have been in index funds for quite some time now, and overall I am pretty happy about their performance, as they have done ok all without any effort by me. I do put money elsewhere as well…money markets, individual stocks, a Roth, a bond fund and a small cap fund..but the index fund normally is the most stable of the “stock oriented” activities we partake in. We have a lot of our stuff at TRowePrice, but Vanguard is another great company to go with.
If you are considering starting to invest in mutual funds, please be sure to visit The Simple Dollar to see what it is all about…and while you are at it, peek around the rest of the site, as its all worthwhile and incredibly well written.