The Only Investment Guide You Ever Need

Investing in the stock market sounds complicated and scary. In reality, it is one of the simplest steps to reach the joy of financial independence. Instead of picking individual stocks, all you need is a single broad-based index fund. An index fund, either a mutual fund or and exchange-traded fund (ETF), is based on a preset basket of stocks, or index. The simplicity of this approach is all you need is one index fund that tracks the Total US Stock Market index.

At Joy of FI, are favorite index fund is Vanguard VTI. VTI is an ETF that tracks the Total US Stock Market. It is very low-cost (expense ratio .03%) and tax efficient. Because it is an ETF, VTI trades like an individual stock throughout the day as opposed to traditional mutual funds which are bought and sold once at the end of the day. There are many other index funds out there that are very similar but we like Vanguard VTI to keep it simple.

One index fund is all you really need during your wealth accumulation years. Invest monthly, by setting up an automatic investment account or mark your calendar every month as a reminder. Invest regularly and regardless of the stock market situation. Remember, you are investing for the long haul so don't try timing the market.

So there you have it, the only investment guide you need as you pursue FI!