Part 5/9:
To simplify the stock investing process, I advocate for using index funds, particularly Exchange Traded Funds (ETFs), which are designed to replicate the performance of a specific index like the S&P 500. This allows you to invest in a diversified portfolio without the need to pick individual stocks.
The data shows that actively managed funds often underperform index funds, which is evidenced by research indicating that 85% of professional investors have failed to beat the market over the past decade. By choosing an index fund, you’re leveraging the overall market's growth without the stress of individual stock selection.