Uncomplicated Wealth Building for Beginners: I am scared of the wall street! How to know what to invest in?

It is easy to make big statements about why we need money and more importantly why we need to grow it in ways faster than in bank accounts. The tough part is to figure out how to grow the money. How does one know what to invest in? Have we not heard of horror stories about the wall street, recessions, the internet bubble, the dotcom bubble, and the housing bubble?

We spoke a little bit of spreading money into mutual funds which is a basket of stocks. For the normal person who does not have the time to delve into financial news, know about company visions, but just wants a long term method to grow money, we have what is called the INDEX FUND.

Index fund is a basket of stocks that constitute the stock market indices like: S and P 500 index, Russell 2000 index. These index funds contain all the companies that are part of that index. For S and P it is the 500 companies that make the index, while for the Russell it is the 2000 companies. In an economy like the US over a long term it has been proven that index funds have returned 6% or more to buyers and if you don't keep pulling the money out, it will be compound interest.

So check out websites of companies like Fidelity, Vanguard, or Schwab and get a simple index fund if you want to park your money, forget about it, and withdraw a huge stack of cash many years later!

Index funds are often the lowest fee mutual funds which makes you keep more of the money you make from the compounding!

So index your way to wealth today!