With total stock market indexing your investment goes a long way

Posted October 13, 2008 by Bernz

Want an easy investment approach? By easy I mean the cut-to-the-chase, one-stop-shopping approach, where you get a heavy mix of all stock styles and size categories.

I’m referring to total stock market indexing. It’s a single-product approach to investing that allows you to invest in the entire stock market all at once. If owning a sizeable chunk of the market and having the opportunity to achieve long-term sustainability excite you then you’ll also appreciate these other 4 advantages of total stock market indexing give you right from the start.

  1. Effortless and broad diversification. This helps protect your portfolio from risks because your “investment eggs” are placed in more than one basket.
  2. You save time. The simplistic structure eliminates monitoring and managing complex portfolios that contain many stocks from various sectors. You get a clear, understandable view of your portfolio at any time.

  3. You save money. Because total stock market indexing has such a simple structure, the need to regularly move between stocks or asset classes in order to improve returns is greatly reduced. This translates into fewer fees so the return on your investment will be higher.
  4. Automatic rebalancing facilitates the appropriate transactions necessary to realign your portfolio so your intended allocations stay put.

Bottom line, an entire stock market index fund is a smart and easy way to invest.

Sectors that May be Reflected in a Total Stock Market Index Fund

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This entry was posted on Monday, October 13, 2008 at 11:35 am and is filed under Retirement Planning, Stock Market Investing, Stock Watch. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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