*Web Novel chapter below*
How to Invest in Index Funds: A Beginner’s Guide to Effortless Wealth-Building
Investing can feel like a maze of confusing options and risky bets—especially if you’re just starting out. But there’s one strategy that cuts through the noise with its simplicity, low cost, and proven results: index fund investing. If you’re searching for a beginner-friendly way to grow your wealth over time, index funds are your golden ticket. In this guide, we’ll explain what index funds are, why they’re perfect for beginners, and how to get started today—complete with trusted platforms where you can sign up. By the end, you’ll have a clear, actionable path to launch your investment journey.
What Are Index Funds?
Imagine owning a small piece of the entire stock market without having to pick individual stocks. That’s the magic of an index fund. It’s a type of mutual fund or exchange-traded fund (ETF) that mirrors a specific market index, like the S&P 500 or the Dow Jones Industrial Average. Instead of betting on one company, you’re investing in hundreds—like Apple, Microsoft, and Amazon—all at once. It’s less about chasing winners and more about riding the market’s natural growth.
Why Index Funds Are Perfect for Beginners
Index funds are the go-to choice for new investors, and here’s why:
- Instant Diversification: One fund spreads your money across hundreds of companies, so a single stock’s stumble won’t derail your progress.
- Low Fees: No need for expensive stock-picking experts—index funds keep costs down.
- Set It and Forget It: No market expertise needed. Just invest and let time do the heavy lifting.
- Proven Track Record: Studies show index funds often outperform actively managed funds, making them a reliable path to long-term wealth.
How to Start Investing in Index Funds: A 3-Step Guide
Ready to take control of your financial future? Follow these simple steps to begin your index fund journey.
Step 1: Choose a Brokerage Account
A brokerage account is your gateway to buying index funds. Think of it as your investment dashboard. Here are three top platforms perfect for beginners:
- Vanguard: The pioneer of low-cost index funds. Sign up here.
- Fidelity: Offers zero-fee index funds with no minimums. Get started.
- Charles Schwab: Known for stellar customer support. Open an account.
Pro Tip: Look for platforms with low fees, a variety of funds, and an easy-to-use interface. Most let you start with as little as $1!
Step 2: Pick the Right Index Fund
Once your account is set up, choose a fund that matches your goals:
- S&P 500 Index Funds: Tracks the 500 largest U.S. companies (e.g., Vanguard’s VOO). Perfect for broad market exposure.
- Total Stock Market Index Funds: Includes small, mid, and large-cap stocks (e.g., Schwab’s SWTSX). Maximum diversification.
- International Index Funds: Invests globally (e.g., Fidelity’s FZILX). Adds worldwide balance.
Newbie Hack: Start with an S&P 500 or total market fund for simplicity and growth potential.
Step 3: Make Your First Investment
Now, it’s time to put your money to work:
- Fund Your Account: Transfer as little as $1–$100 to get started.
- Buy Your Fund: Search for your chosen fund (e.g., VOO at Vanguard) and hit “buy.”
- Automate It: Set up automatic investments—like $50 a month—to grow your wealth effortlessly.
Quick Links:
Why Index Funds Are a Smart Choice
- Lower Risk: Diversification cushions you from single-stock disasters.
- Tax-Friendly: Fewer trades mean fewer taxable events.
- Long-Term Gains: With the market’s historical 7–10% annual return, index funds are a retirement-building powerhouse.
Risks to Keep in Mind
No investment is bulletproof. Here’s what to watch:
- Market Swings: When the market dips, so does your fund. But history shows it bounces back.
- No Big Wins: You won’t beat the market—but for most, matching it is a win.
Tips for Index Fund Success
- Invest Regularly: Use dollar-cost averaging to smooth out market highs and lows.
- Diversify Further: Add international or bond funds as your portfolio grows.
- Stay the Course: Don’t panic-sell during downturns. Long-term investors win by holding steady.
Real-Life Success Story: Sarah’s $240,000 Nest Egg
Meet Sarah, a 30-year-old teacher who invested $200 a month in an S&P 500 index fund. After 30 years, her $72,000 in contributions ballooned to over $240,000—thanks to the market’s average 7% return. No stock-picking, no stress—just consistent investing through platforms like Fidelity or Vanguard.
Start Your Investment Journey Today
Index funds are your beginner-friendly path to low-cost, reliable wealth-building. Sign up with a trusted brokerage like Vanguard, Fidelity, or Charles Schwab, pick a fund, and start with as little as $50 a month. The sooner you begin, the more time your money has to grow. Take that first step now—your future self will thank you!
The Reincarnated Young Girl Is Adored by the Spirits She Helped in Her Previous Life
A servant came from behind the king and swiftly placed tea in front of everyone.
“Thank you!”
I thanked him, drank the tea, and ate a cookie.
“The tea and cookies are delicious… As expected from the royal palace’s chef.”
“Glad you like it. I’ll have some packed for you as a souvenir.”
When the king glanced at the servant, the servant quietly nodded.
“These are good. Grandpa should eat some too.”
“Oh, thank you.”
The king accepted the cookie from me and started eating while speaking.
“How much did you explain to Graf?”
“Hmm… let me explain everything again.”
“Hmm? Did you not mention Conrad at all?”
The king looked surprised. To begin with, who is this Conrad? It’s the first I’ve heard of him.
“Who’s that?”
“That fool who came to the waiting room.”
“Oh, that guy? So his name is Conrad?”
“Should I scold him, grandpa?”
“Hmm? No need. Luria will settle things later. We won’t need adult intervention. Oh, and what about Sara?”
“Sara agrees with that too.”
Hearing this, the king muttered, “Hmm.”
“But don’t you think that fool’s behavior deserves to be scolded?”
“Indeed?”
The idea that beastmen can be looked down upon must be corrected.
“But Conrad is still just a little kid. He can’t be blamed for not knowing what’s wrong.”
“So it’s the responsibility of adults, then?”
“Yeah, exactly. Conrad probably just mimicked what the adults said.”
“That’s right. Taking that into account, I’ll take care of it myself.”
The king muttered, “Even if he’s a brat, he may one day become king.”
“Graf, your upbringing seems excellent?”
“I’m honored.”
“Luria, by the way, Conrad is six years old. He’s a year older than you.”
“What… I thought he was a baby… So he’s older… Sara, are you surprised?”
“Sara thought he might be older.”
“What…”
This was the biggest shock of the day. The king laughed heartily.
Seeing the king like that, my father momentarily flinched.
It was probably a smile he had never seen before.
“Graf, since you seem lost, I’ll explain.”
With that, the king began recounting what Conrad had done in the waiting room.
Apparently, the king had a very accurate grasp of what Conrad had done.
“What, such a thing…”
“Father, it’s alright. I made him cry. Though I failed to make him apologize, I’ll do better next time.”
“Luria, report everything, including that. I told you there’s no need to worry about tattling.”
“…Yes.”
Come to think of it, we did make that promise. Maybe I need to reflect on that.
“But getting angry for Sara’s sake was a good thing. You did well.”
“Yes!”
I felt happy being praised by my father.
And the king also patted my head.
“Graf, you must have been surprised by my behavior, right?”
The king seemed amused.
“Yes, honestly, I was quite surprised.”
“I expected as much. I need to explain why I’ve changed.”
Then, the king began to speak slowly.
He recounted how he had fallen into suspicion and paranoia, intending to use me and Sara for his own ends.
How he had gone himself to check on us, only to nearly be assassinated and resign himself to a miserable death.
How he was saved from that suffering by me and Sara.
While listening to the king’s story, Sara and I munched on snacks.
“You helped an old man covered in filth without any hesitation.”
With that, the king looked at me and Sara.
“Without expecting anything in return, unbothered by dirtying your hands.”
The king lifted Sara onto his lap.
“I asked Luria why she helped me. Luria, do you remember what you said?”
“Munch munch… Not really? Munch munch.”
I vaguely remembered being asked something like that, but I didn’t recall saying anything significant.
By now, the plate of cookies I had brought from the table was empty.
I was now eating the cookies that were originally on the low table.
The cookies in the royal palace were simply amazing.
“Luria said this: If a puppy were about to fall into a well, anyone would help.”
“A puppy?”
“Yes. It wasn’t because I’m the king, or because of my status, or because I’m impressive. It wasn’t out of expectation for reward, nor to avoid blame for not helping. It was simply an instinctive act of saving someone in need.”
The king seemed somewhat excited.
“That’s how it was, right?”
“Munch munch… Probably? Gulp gulp.”
I didn’t fully understand, but maybe it was true.
The cookies were delicious, and the tea was great. I couldn’t stop eating.
“I was deeply moved by the selfless hearts of Luria and Sara, who saved my life.”
That’s why the king said he had changed from being a bundle of suspicion.
“Therefore, I decided that I’d do anything for Luria and Sara.”
“…Thank you. But, Your Majesty, why so suddenly this morning?”
“Ah, that’s because last night, Lord Sui came and mentioned how difficult studying etiquette was going to be.”
So, he decided to call them early and spare them from having to study etiquette.
“Lord Sui came? Munch munch. This morning was normal though.”
“Graf, who only knows the old me, would try to make Luria learn perfect etiquette.”
“Well, you could have just said so.”
“If I had, would you have believed me?”
“…Well, maybe not, but…”
While the adults talked, I sat beside the king, eating cookies with impeccable manners.
Afterward, the adults began discussing complex matters, like how to deal with factions opposing granting noble titles to beastmen.
Once the plate of cookies was empty, we decided to explore the room.
“Wow, cool! What’s this? What’s it used for?”
I became interested in a mask hanging on the wall.
It was a fox-shaped mask, one white and one black.
“Oh, those are protective masks given to me by the neighboring country’s king.”
The king, who had been talking with my father, smiled and explained.
It seemed to be a souvenir from the neighboring country.
“Wow, it’s cool, isn’t it?”
“Yes. The fact that you appreciate how cool it is shows Luria has good taste.”
“Hehehe.”
“Alright. I’ll give that mask to Luria, who has such good taste!”
The king stood up, took the white and black masks off the wall, and offered them to me.
“Is it okay? What about yours, grandpa?”
“Actually, I still have plenty. Besides, it suits your face perfectly.”
The king took the mask from my hand and held it to his face.
“Indeed, it’s too small for grandpa.”
“That’s right. It’s probably meant for children. So, take it without worry.”
“Yay! Thank you, grandpa!”
When I thanked him, the king smiled happily.
“Can I give one to Sara?”
“Of course. That’s why I gave you two.”
“Your Majesty, thank you.”
Sara bowed politely.
“…Sara, call me ‘grandpa’ like Luria does.”
“No, I couldn’t. It’s too presumptuous.”
Marion panicked, but the king smiled and said,
“It’s my request. Won’t you grant it?”
“Understood. Grandfather.”
Sara, unable to bring herself to say “grandpa,” settled on “grandfather.”
“Hmm. Thank you. Take care from now on, Sara.”
“Yes. Grandfather.”
The king gently patted Sara’s head, looking pleased.
After that, Sara and I explored the room for a while but soon grew bored.
“I’ll go to the garden with Sara! Oh, mom, please hold onto the masks so I don’t lose them!”
After entrusting the masks to my mother, Sara and I went out to the garden from the reception room.
