Buy broad index funds for simple diversification

Instead of picking individual stocks, invest in a total stock market index fund like VTI (Vanguard) or FSKAX (Fidelity). One fund gives you ownership of thousands of companies instantly. Add an international fund (VXUS) and a bond fund (BND) for further diversification.

Why It Works

Index funds consistently outperform most actively managed funds over the long term, have extremely low fees (0.03-0.10% per year), and require zero stock-picking knowledge. Warren Buffett recommends them for most investors.

Tips

• A simple three-fund portfolio (US stocks + international stocks + bonds) is all most people need
• Fractional shares let you buy any fund with as little as $1
• Do not check your portfolio daily — investing is a decades-long game
• Rebalance once per year to maintain your target allocation