The Money with Katie Show How to Start Investing Successfully with Just Two Funds
31 snips
May 18, 2022 AI Snips
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Two Funds For Life Strategy Explained
- The Two Funds for Life method uses mostly a target date fund plus a small cap value fund.
- Target date funds provide diversified exposure to stocks and bonds adjusted for your retirement timeline.
Small Cap Value Boosts Returns
- Small cap value stocks historically outperform large cap stocks but are more volatile.
- Including 10% small cap value in a portfolio increases return potential with manageable risk.
How To Start Buying Funds
- Use online resources like Google to research funds and ETFs to invest in.
- Choose a brokerage that offers low-fee index funds; exact choice doesn’t matter much.