Save Time and Money: How Index Funds and ETFs Can Transform Your Finances

"Everyone has the same 24 hours in a day."

 

Here's why this isn't my favorite motivational troupe: Although we all have the same 24 hours in a day, we do not have the same resources.

The Reality of Our 24 Hours

So, if you don't have the money to outsource every task on your to-do list, you're likely looking for a QUICK way to invest! Let's be real. You're likely reading this while you're on the way to work (not driving though), getting kids ready for school, organizing holiday activities, walking your dogs, or standing in line at the grocery store.

I feel ya.

My #1 Time-Saving Tip When Investing: Index Funds & ETFs

Recent studies show that you need to be invested in around 1,000 stocks to have a balanced and diversified portfolio. I know I don't have time to research 100 stocks, let alone 1,000 and I'm guessing you don't either!

Here Are 4 Reasons I ♥️ Index Funds & ETFs:

1. Low Costs Look, an expense ratio (fee) of 1% can cut your returns IN HALF! Index funds and ETFs tend to be low cost (.2% and below), and many have 0% fees. Personally, I like using Fidelity's Zero Expense Ratio Index Funds for this reason!

   • Example: Imagine you invest $10,000 with a 1% fee. Over 30 years, that fee can reduce your returns by nearly $60,000. Now imagine a 0% fee—more money stays in your pocket.

2. Easy to Diversify Diversification is an investor's #1 risk-reducing tool! You can diversify your portfolio by holding companies of different sizes, locations, and industries.

   • Example: An index fund like the S&P 500 automatically diversifies your investment across 500 of the largest companies in the U.S., spreading your risk and potential rewards.

3. Great Performance The Wharton School of Finance found that 97% of fund managers for large and mid-size companies produced lower returns compared to their index funds!

   • Real-Life Success: Take Jane, who switched to index funds after realizing her actively managed funds were underperforming. Her portfolio's returns improved significantly, providing her with more financial security and peace of mind.

4. Easy to Automate Automation is key! Once you know what funds you want to buy, you can automatically purchase them at regular intervals (this is called Dollar Cost Averaging or DCA).

   • Example: Set up an automatic monthly investment of $200 into an index fund. Over time, this simple, hands-off approach builds a significant portfolio with minimal effort.

Action Step: Evaluate Your Current Investments

If you are already investing, I want you to take 5 minutes and go look at the expense ratio of your investments. If they're over .2%, see what other options might be available. This move alone can save you thousands!

Why This Matters

• Compound Savings: Lower fees mean more money stays in your investment, compounding over time and significantly increasing your returns.
• Stress-Free Investing: With index funds and ETFs, you don't need to constantly monitor the market or stress about picking the right stocks.
• Financial Freedom: Smart, low-cost investing paves the way to achieving your long-term financial goals, whether that's a comfortable retirement, a dream vacation, or financial security for your family.

Call to Action: Transform Your Financial Future

Ready to take control of your financial future with smart, low-cost investing? Click [HERE] to learn more about my signature 1:1 Holistic Financial Coaching program. We’ll help you build a tailored investment strategy that aligns with your goals and lifestyle.