NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
05 Dec 2024
What are the basics of investing?
So I have actually not done that. I don't have experience in that. But one thing I will say is I invest mostly in index funds and ETFs.
And let's quickly just state what index funds and ETFs are for people who may not know.
They're essentially like a basket of stock, right? You get a little bit of this, a little bit of that. There are different kind of ETFs and index funds that you can get, but it exposes you to different industries, different type of companies, so that if one is underperforming, hopefully the other one is doing pretty well.
And they can mirror the performance of the market on the whole, depending on what type of index fund or ETF you're investing in.
Exactly. Did y'all know that Sean was studying for his CFP exam? See, the knowledge is poking through.
Just sprinkling it throughout the conversation.
This is how he reviews course material.
Truly it is. Yes. Anyway, go ahead, Elizabeth.
So I do have some stock, though, that I am hoarding. And to be honest, I do need to sell it and would like to put it in an index fund because I have quite a bit of it. What the listener could do if they're savvy with investing is do some research and analysis to see which stocks have consistently performed over the past few years and invest in those companies.
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