> Put everything else in index funds every paycheck, and only check your balance every now and then. Let time be on your side.
I think this is not the obvious conclusion, but a sensible conclusion. You could also, for example, buy bonds from companies that you are sure enough would not easily default. If you know nothing about shares an index fund is not a bad idea.
But, in South Africa at least, some companies have pension funds where even the broker doesn't know (or care maybe?) which shares the fund invests in. The guy at the top (that knows exactly which shares are held) are not always the cleverest or most honest. To be fair, I think these are rather mostly investment funds run by investment companies, rather than an index fund like the S&P 500.
I think once you start earning enough to invest more than just for pension, the picture changes somewhat and you could even invest in alternative things. Agriculture, for example, is a promising prospect for a richer investor, but you need to count your chickens only when they are already old and fat.
I think this is not the obvious conclusion, but a sensible conclusion. You could also, for example, buy bonds from companies that you are sure enough would not easily default. If you know nothing about shares an index fund is not a bad idea.
But, in South Africa at least, some companies have pension funds where even the broker doesn't know (or care maybe?) which shares the fund invests in. The guy at the top (that knows exactly which shares are held) are not always the cleverest or most honest. To be fair, I think these are rather mostly investment funds run by investment companies, rather than an index fund like the S&P 500.
I think once you start earning enough to invest more than just for pension, the picture changes somewhat and you could even invest in alternative things. Agriculture, for example, is a promising prospect for a richer investor, but you need to count your chickens only when they are already old and fat.