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Index Fund Checklist

Below is a very simple checklist that should be used whenever you are contemplating an investment in a Stock Index Fund. Get the wallet sized PDF checklist here.

I have also taken the liberty and recommended the best Total Stock Market, S&P 500 and International Index Funds offered by Schwab, Fidelity and Vanguard.

1. What is the expense ratio? If more than .5% do not bother.

2. What are the transaction costs? If more than $0 do not bother.

3. Are there any loads? If so do not bother.

4. Check the minimum initial investment. This is the amount of money you have to initially invest in order to be able to buy the fund. Make sure you can afford it.

5. Check the minimum additional investment. This is the minimum amount of money you must contribute per transaction. Make sure you will be able to contribute additional money frequently.

6. Continually invest weekly, monthly or bi-monthly into your Index Fund selections for the rest of your life.

 

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