my top finance creators

Today, someone sent me this screenshot of the latest Graham Stephan video. If you didn’t know, Graham Stephan is the most popular finance at the moment (for now). Turns out he was reacting to one of my videos!

DEFINITION
What is an Index Fund?

• Imagine you have a big jar of candies. Instead of picking just one kind of candy, you decide to get a little bit of every kind available. That's what an index fund does with stocks - it holds a small piece of lots of different companies. So, when the companies do well, your index fund does well too! It's like having a basket with a little bit of everything, so if one thing doesn't do well, it's okay because other things might do better.

• There’s one index fund that follows the performance of the top 500 companies in the US. So if you buy 1 of those index funds, you have are invested into a little bit of every one of those 500 companies. This is a lot easier, and less risky way to invest instead of trying to pick different stocks all by yourself. Why not just invest in the top 500 companies ALL IN ONE.

HELPFUL RESOURCES
Watch my favorite finance creator explain index funds

• Tae Kim - Financial Tortoise made a great video explaining what an index fund is, and why it’s a great idea if you’re investing for the long term. Check it out!

OUR COMMUNITY
What are your questions? Or share a win!

• Reply to this email with any personal finance question you have, or share with me any wins in your life! (I’ll respond to your questions anonymously in future emails)