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How to Determine a Maximum IRA Contribution
How Do Annuities Work?
How Do IRA Distributions Work?
How Does a Roth IRA Compound Interest?
Information on Selling an Annuity
What Are Annuities?
What Are Index Funds?
How Much Money to Save for Retirement
How to Purchase an Annuity
What Is a Pension Plan?
Requirements for Early Medical Retirement
About Financial Planner Services
Living Cheap in Retirement
What Is the Prime Rate?
About CD Rates
Starting an Investment Retirement Account
What Is the Difference Between an IRA & CD?
How Much Can You Contribute to a Roth IRA?
How Much Money Do You Need to Open an IRA?
What Is the Average Interest on IRAs?
What Is an Investment Account Mid Cap Index?
About the Effects of Retirement
Opening an ING Investment Savings Account
How to Qualify for Social Security Disability
Summary: Index funds are generally more diversified than an individual stock for the common investor. Learn about index funds and the SNP 500 with help from a licensed insurance agent in this free video on retirement planning and personal finance.
William Rae has been licensed in the insurance and financial fields for over 30 years. Rae currently runs HBW Florida, specializing in life and health insurance for small business...read more
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"Hi, my name is Bill Rae. I'm a licensed agent and I have been in the field for well over twenty years and the question is what are index funds? Good question a nice simple explanation of an index fund, think of it as a basket of stocks. For instance, if I had a thousand dollars that I bought into general electric, I would only have general electric stock and that would rise and fall with general electric. An index fund however would be something more like the SNP five hundred which is the top five hundred companies. So, if I took that same one hundred thousand dollars and bought into the SNP five hundred, in theory I would have two dollars on each one of the five hundred companies. So, the SNP is an index fund. Index funds generally are more diversified than an individual stock for the common investor. My name is Bill Rae and I'm helping you build wealth."
eHow Article: What Are Index Funds?
Meet Mark P Cussen, CFP, CMFC eHow's Personal Finance Expert.
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