I’ve been investing in the stock market now for almost a decade, its a lot of time now that I think about it. But my first investment into index funds came after 3-5 years of investing in individual stocks, and in this video, I’ll tell you exactly why.

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1. Index Fund Basics
– An index is a tracker of sorts, and an investment fund is when investors pool money together to buy certain asset classes
– So an index fund, is when investors pool money together to try to track a certain part of the market

For example, think about this:
– We have an index that shows us that US tech Economy is growing by 10% a year
– Instead of trying to buy Tesla or Microsoft other tech stocks
– We come together and pool our money and start a Tech Fund Index, we buy the top 100 or 200 tech companies in the US and try to get an average return of 10% a year from the tech sector

Overall: that’s all you Need to Know, it’s not that complicated
2. Why do a lot of people Resist investing In Index funds
– The answer is simple, they outperform market averages
– And they think that just buying the index and getting the average is not good enough
– So at the very core you have three main reasons

First: Greed
– My sole investing right now is the S&P 500 and this year I have made about a 7.6% return but I expect over the next 10 years or few decades to average out to roughly 8% after taxes, fees, and inflation
– But you hear about people making fortunes overnight or Buffet making 25% a year
– But let’s be real, most people just want to invest some money today and then be on social media saying how they made millions
– It is greed, and what ends up happening is they lose the little they have

Second: Ego Based on an unrealistic expectation
– People think they have what it takes and most of us think we are the protagonist in every story, but most of the time it’s just not true
– Theirs only one Warren Buffet, one Elon Musk, and so on. However there are many many millionaires that are in their 50s, but people don’t want that
– Your ego makes you believe that you can trade stocks, pick stocks or pick mutual funds that will outperform the market
– But studies show and your portfolio will you, the opposite

Third: Hope
– You never know

3. What changed your mind and what took you so long
– doing something smart beucase someone smart has told you to do it, and the evidence is there is good
– but sometimes you have to go through a process to build conviction for what it is you are going to be doing
– for example, it took 5 years because I was a big dummy and I needed to go through that process

But once I realize the truth
– I never looked back

Here is what I like the most about Index Investing
– You can automatically make it
– It’s less risky
– It’s cheaper
– You make more money ( relative to what most investors do, including the guns on Wall Street)
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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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