#47: Index Funds for Everyone
This one is so true! A lot of people I know are afraid of the stock market because they assume they’re going to have to pick individual stocks, and they hear horror stories about people who have tried to pick individual stocks and done terribly at it (because experience has shown, time and time again, that picking individual stocks is really hard and most people aren’t good at it).
But fortunately, you don’t have to pick individual stocks! Just buy a nice, sensible low-cost index fund. The fees are way lower, it requires no effort on your part, and you get steady, reliable returns. You’re not going to make a bazillion dollars overnight, but you’re also not going to risk picking a stock that plummets and loses all your money.