Money Talk

Hey Reader,

I trust it's been a banger of a week? 💚

This week has been an absolute whirlwind for me - and I'm not just talking about the storms we had last night.

I've been pouring my heart and soul into our Instagram community since January, and wow, have you been showing up!

We've skyrocketed from 5k to a staggering 20k followers in under a month - I'm literally gobsmacked 🤯.

Our journey to empower 1 million people this year is on track, and I'm here for it!

Today, we're diving into the world of investing, shining a light on the superheroes of the investment world: index funds.

You've been flooding my DMs with questions about the S&P 500, and I hear you loud and clear.

What's the big deal with it? How do you get a piece of the action? And why should you even bother?

What is an Index Fund? 📈

Think of an index fund as a treasure chest that holds a slice of the market's bounty.

It's a type of fund that tracks a specific set of investments, mirroring the performance of a market index.

And when we talk about the crème de la crème, the S&P 500 takes center stage.

You'll also know the FTSE in the UK too - also an index.

The S&P500, or Standard & Poor's 500 though, is like the Premier League of the investment world.

It's a collection of 500 of the largest companies listed on stock exchanges in the United States, offering a snapshot of the health and performance of the US economy.

Investing in the S&P500 is akin to having Lionel Messi or Cristiano Ronaldo on your fantasy football team; it's a powerhouse of potential.

Why Are Index Funds Such Great Investments?

Index funds are the unsung heroes for both seasoned investors and newcomers. Here's why they're a brilliant choice:

• Diversification: By investing in an index fund, you're spreading your bets across a wide array of companies. It's like having your eggs in multiple baskets, reducing the risk if one were to fall.
• Cost-Effective: With lower management fees than actively managed funds, more of your money stays invested and works for you.
• Simplicity: They offer a straightforward way to participate in the stock market's growth without needing to pick individual stocks.

When it comes to the S&P500s results - it has returned 12.43% on average a year since 2010 and 10.74% since 1970.

Yes, we can't predict future results based on past performance, but it's all we have to go by.

The Charm of Index Funds vs. Individual Stocks

For those new to the investment game or looking for a less hands-on approach, index funds are a godsend.

They eliminate the need for constant market monitoring and the daunting task of selecting "winning" stocks.

It's a set-and-forget it type strategy that lets you capatilise on the market's overall growth, ideal for building long-term wealth with less stress and hassle.

I don't know about you, but most people just want to get on with their lives but still invest. Index funds are your answer.

How Can I Invest in Them?

Enter the world of ETFs (Exchange-Traded Funds).

These beauties allow you to invest in index funds through the stock market, combining the ease of stock trading with the diversification benefits of index funds.

And when it comes to getting your feet wet without sinking in fees, InvestEngine is your go-to platform.

With the lowest fees on the market, InvestEngine offers an Individual Savings Account (ISA), making it a prime choice for beginners.

Their app is SO easy to use, plus they're solely about investing in funds meaning they're perfect for beginners and more seasoned investors alike!

** EXCLUSIVE UP THE GAINS OFFER - Get up to a £50 bonus when you deposit £100 with InvestEngine.

👉🏼 Visit InvestEngine 👈🏼

(T&Cs Apply - Capital at Risk)

Any questions hit reply!

See you Monday 🙏🏼

Sammie

P.S. "If you cannot control your emotions, you cannot control your money" - Warren Buffett