site banner

Small-Scale Question Sunday for January 12, 2025

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

4
Jump in the discussion.

No email address required.

From a pragmatic viewpoint, figure out how to buy index funds if you don't already know. Some questions to ponder: why do people prefer index funds over actively managed funds? Why is diversification good, and why is it bad? How do most actively managed funds perform compared to say the S&P500?

The personal finance subreddits have decent resources and wikis. To be explicit, if you are young I would suggest investing in an index fund, either US equities, S&P500, or a global tracker, and investing with the intention of staying in the market for at least 5-10 years.

First do that, then learn about calls and puts and leverage and alpha and beta and P/E ratios and all that stuff