• frezik
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    4 months ago

    Stocks also pay dividends.

    The best way for most people to invest the stock portion of their portfolio is to stuff it in an SP500 index and forget about it. When you include transaction costs, it’s very hard to beat this strategy consistently, especially with comparable risk. Jumping in and out when you think it’s going to go up or down only works with extreme luck. What money you do make over staying in the market is almost always siphoned away by transaction costs.

      • frezik
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        4 months ago

        The vast majority of companies in the SP500 pay dividends. The whole strategy of putting money in it and holding depends on dividends and long term growth.