Thursday, October 16, 2008

How to Purchase an Index fund with Scottrade




When you purchase an Index Fund it will be under the "Mutual Fund" section.
$3000 is the minimum initial investment.




Reinvesting the cash back into the fund will help it grow faster.




This page is to helping you to remember that this is a long-term investment.
The cost of $17 is higher than the usual $7 because it is an Index fund instead of individual Stock.
I believe if you have a Vanguard account, they don't charge you the $17 cost.

3 comments:

2.5 said...

Craig,
I've heard that with the new Obama administration it'd be wise to invest in alternative energy, infrastructure, and technology stocks. Since you consistently advise against purchasing individual stocks, are there any indexed funds exclusively tied to those three sectors?

Anonymous said...

My concern is that you are requesting information that is tainted with "market timing." Since everybody knew Obama likes these industries then once he got elected people are putting money into them. So we are late to the game. Now people have already bought in, so when are you going to sell? When Obama leaves office? Market timing tends to never work.

Before getting focused on individual sectors, make sure you understand diversification according to Ric Edelman. If you don't have a little of everything right now, I'm concerned too much of your money is going to go into Obama friendly industries that you will try and market time with poor results.

Buy low sell high.

But if you are dead set on it, some simple google searches came back with GEX, GII, VGT.

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