*Web Novel chapter below*
How to Invest in Index Funds: A Beginner’s Guide to Effortless Wealth-Building
Investing can feel like a maze of confusing options and risky bets—especially if you’re just starting out. But there’s one strategy that cuts through the noise with its simplicity, low cost, and proven results: index fund investing. If you’re searching for a beginner-friendly way to grow your wealth over time, index funds are your golden ticket. In this guide, we’ll explain what index funds are, why they’re perfect for beginners, and how to get started today—complete with trusted platforms where you can sign up. By the end, you’ll have a clear, actionable path to launch your investment journey.
What Are Index Funds?
Imagine owning a small piece of the entire stock market without having to pick individual stocks. That’s the magic of an index fund. It’s a type of mutual fund or exchange-traded fund (ETF) that mirrors a specific market index, like the S&P 500 or the Dow Jones Industrial Average. Instead of betting on one company, you’re investing in hundreds—like Apple, Microsoft, and Amazon—all at once. It’s less about chasing winners and more about riding the market’s natural growth.
Why Index Funds Are Perfect for Beginners
Index funds are the go-to choice for new investors, and here’s why:
- Instant Diversification: One fund spreads your money across hundreds of companies, so a single stock’s stumble won’t derail your progress.
- Low Fees: No need for expensive stock-picking experts—index funds keep costs down.
- Set It and Forget It: No market expertise needed. Just invest and let time do the heavy lifting.
- Proven Track Record: Studies show index funds often outperform actively managed funds, making them a reliable path to long-term wealth.
How to Start Investing in Index Funds: A 3-Step Guide
Ready to take control of your financial future? Follow these simple steps to begin your index fund journey.
Step 1: Choose a Brokerage Account
A brokerage account is your gateway to buying index funds. Think of it as your investment dashboard. Here are three top platforms perfect for beginners:
- Vanguard: The pioneer of low-cost index funds. Sign up here.
- Fidelity: Offers zero-fee index funds with no minimums. Get started.
- Charles Schwab: Known for stellar customer support. Open an account.
Pro Tip: Look for platforms with low fees, a variety of funds, and an easy-to-use interface. Most let you start with as little as $1!
Step 2: Pick the Right Index Fund
Once your account is set up, choose a fund that matches your goals:
- S&P 500 Index Funds: Tracks the 500 largest U.S. companies (e.g., Vanguard’s VOO). Perfect for broad market exposure.
- Total Stock Market Index Funds: Includes small, mid, and large-cap stocks (e.g., Schwab’s SWTSX). Maximum diversification.
- International Index Funds: Invests globally (e.g., Fidelity’s FZILX). Adds worldwide balance.
Newbie Hack: Start with an S&P 500 or total market fund for simplicity and growth potential.
Step 3: Make Your First Investment
Now, it’s time to put your money to work:
- Fund Your Account: Transfer as little as $1–$100 to get started.
- Buy Your Fund: Search for your chosen fund (e.g., VOO at Vanguard) and hit “buy.”
- Automate It: Set up automatic investments—like $50 a month—to grow your wealth effortlessly.
Quick Links:
Why Index Funds Are a Smart Choice
- Lower Risk: Diversification cushions you from single-stock disasters.
- Tax-Friendly: Fewer trades mean fewer taxable events.
- Long-Term Gains: With the market’s historical 7–10% annual return, index funds are a retirement-building powerhouse.
Risks to Keep in Mind
No investment is bulletproof. Here’s what to watch:
- Market Swings: When the market dips, so does your fund. But history shows it bounces back.
- No Big Wins: You won’t beat the market—but for most, matching it is a win.
Tips for Index Fund Success
- Invest Regularly: Use dollar-cost averaging to smooth out market highs and lows.
- Diversify Further: Add international or bond funds as your portfolio grows.
- Stay the Course: Don’t panic-sell during downturns. Long-term investors win by holding steady.
Real-Life Success Story: Sarah’s $240,000 Nest Egg
Meet Sarah, a 30-year-old teacher who invested $200 a month in an S&P 500 index fund. After 30 years, her $72,000 in contributions ballooned to over $240,000—thanks to the market’s average 7% return. No stock-picking, no stress—just consistent investing through platforms like Fidelity or Vanguard.
Start Your Investment Journey Today
Index funds are your beginner-friendly path to low-cost, reliable wealth-building. Sign up with a trusted brokerage like Vanguard, Fidelity, or Charles Schwab, pick a fund, and start with as little as $50 a month. The sooner you begin, the more time your money has to grow. Take that first step now—your future self will thank you!
Glaiftrum War Chronicles The Salvation Strategy of Matthias, the Smiling Strategist
Unified Calendar, Year 1192, May 8th.
Capital City of Schwelenburg, Kingdom of Glaiftrum ; Residence of Viscount Lauschenbach . Matthias von Lauschenbach .
Her wild, snow-white hair framed a face deeply etched with wrinkles, her sharp hooked nose and narrow eyes resembling the very embodiment of a witch, making me shrink back in apprehension.
The Great Sage Magda stood beside my bed.
Her piercing gaze slightly opened, glaring at me with an intimidating stare.
“Is this brat Matthias?”
Though it would be customary for one to introduce oneself when asked for a name, I knew better than to speak up, and could only nod in affirmation.
My unspoken thoughts went unheard, as Dr. Martin Netzer, my attending physician, stepped in to make introductions on my behalf.
“I believe you’ve already been informed, but this is the Great Sage Magda. She means you no harm, so please rest assured.”
After saying this, Dr. Netzer turned back to the Great Sage with a wry smile.
“Glaring like that will only frighten him.”
“Hmph. If he’s scared by something as trivial as this, then he’s not worth meeting. Look at him—though he appears frightened, he’s observing me calmly. Quite the composed lad, isn’t he?”
Indeed, at that moment, I was staring at her.
But it wasn’t out of defiance or observation—it was simply because I had frozen in place, unable to move. I wasn’t pretending to be scared; I truly was terrified.
Even if I wanted to voice my fear, my vocal cords were paralyzed, rendering me mute.
“I see. Certainly, under the intense gaze of someone like Magda, even battle-hardened knights might flinch and look away. A child barely ten years old would likely break down in tears. The fact that he hasn’t made a sound or averted his gaze speaks volumes about your insight, Magda-sama.”
Dr. Netzer’s misguided words caused me to silently scream “No!” in my mind. But it seemed that even a millennia-old witch lacked the ability to read minds, as my inner voice remained unheard.
“Boy, enough with the act. Answer my question.”
Though being told to stop pretending left me in a bind, I responded with a small nod.
“You told this Martin that Frieden fell because its rulers failed to understand human nature, yes? Elaborate further. Explain it in a way that satisfies me.”
Her sharp glare returned, freezing me once more.
If legend held true, and the Great Sage before me was indeed the real Advisor Belarater who had aided in the founding of Frieden, answering her question would be no easy task.
Clearly, she wouldn’t accept some half-baked response.
I steeled myself.
Recalling a major presentation I had given in the past, I took a deep breath in my mind and mentally repeated a mantra: There’s no one in front of me.
This was a routine I used to calm my nerves during high-stakes presentations. It had helped me get through delivering results to nearly a thousand people in a corporate setting.
Once I felt my tension ease, I forced a confident smile onto my face, mimicking the demeanor I’d adopted during those presentations, and began speaking slowly.
“Even in small groups, whenever two or more people gather, friction inevitably arises. This holds true whether it’s a loving couple or blood-related parent and child. And no matter how happy they may be, minor troubles are bound to occur. In fact, the happier they are, the more likely small issues can escalate into dissatisfaction, leading to conflicts—not uncommon at all.”
I glanced at the Great Sage, but her stern expression didn’t waver. However, I found some relief in the fact that she no longer exuded the same oppressive aura as before.
“Now, consider this: what happens when there’s an external threat to the group—a common enemy, if you will? Even siblings who constantly fight would have no choice but to cooperate if surrounded by Untia beasts with no escape route. Similarly, if stranded in snowy mountains, two people must huddle together for warmth to survive.”
As I presented these rudimentary examples, the Great Sage didn’t seem convinced. Deciding to take a risk, I brought up an example from this world.
“For instance, take the neighboring country of Lecht France. Surrounded by three nations—Glaiftrum to the north, Schützenhagen to the east, and Lichtrôt to the northeast—none showed territorial ambitions toward Lecht France, nor did they pose any significant threat. Thus, since its founding, Lecht France enjoyed centuries of uninterrupted peace and security.”
Lecht France was a religious state located south of the Kingdom of Glaiftrum .
Details about its founding were unclear, but it was said that in its early days, it was ruled by a pious religious leader. Backed by the formidable military power of the Order of the Holy Knights, they expelled the Untia beasts and basked in peace.
However, about a century after its founding, the nation began to exhibit the hallmarks of a corrupt theocracy. Its leaders grew decadent, and those who could no longer tolerate their corruption rose up, leading to the secession of the Grandt Hood Republic, which split the nation.
“Even so, it took over five hundred years for the Grandt Hood Republic to form. Yet Frieden collapsed in just thirty years. What explains this difference?”
I paused to gauge the Great Sage’s reaction. The oppressive atmosphere had completely dissipated, and she now seemed genuinely intrigued.
“The difference lies in the fact that in Frieden, everyone was equally happy and equally unhappy, whereas in Lecht France, that wasn’t the case. I believe this disparity was the root cause.”
“Equally happy and equally unhappy… I don’t understand.”
For the first time, the Great Sage spoke.
“In Lecht France, a privileged class of religious leaders exploited the masses. However, by placing the beastfolk Serians beneath them, the general populace could feel superior to someone.”
Lecht France was governed by the Tuterary religion, which espoused the supremacy of humans (Mensch ). As a result, non-human races, particularly the beastfolk Serians, faced persecution.
“While Lecht France provided the masses with the beastfolk as scapegoats, Frieden had no such group.”
“Hmm.”
The Great Sage nodded thoughtfully.
“Frieden was a utopia of sorts. No one went hungry, and everyone enjoyed a moderate level of happiness. But humans compare themselves to others to determine their own standing. If they perceive themselves as superior, they feel happy; if inferior, they feel unhappy. That’s human nature.”
“So you’re saying that because everyone in Frieden was equally happy, and there was no one beneath them to measure themselves against, they couldn’t discern whether they were truly happy or unhappy?”
I nodded emphatically.
“Precisely. The books say that in Frieden, one could achieve happiness without working hard. Conversely, this meant that no matter how much effort one put in, no significant gap would form between them and others. For ambitious, driven individuals, this kind of society might well have been a living hell.”
“Hmm…”
The Great Sage grunted, deep in thought. Ignoring her contemplation, I pressed on.
“Some of these discontented individuals—the Orkus, a group of talented and ambitious mages—rose up in rebellion. That’s my theory.”
In a sense, Frieden could be seen as the ultimate communist state.
All property was communal, free from exploitation by a ruling class like royalty. With minimal labor, one could live comfortably without hunger. Even in old age, a robust social welfare system ensured a life free from anxiety.
“I understand what you’re saying, boy. But even if they were discontent, unlike the chaotic eras of constant warfare, no one in Frieden faced mortal danger. Wouldn’t it be strange for them to contemplate rebellion that would shatter such a peaceful society?”
“The era is called chaotic, but I doubt there was constant fighting across the entire continent. Smaller nations were absorbed, and tragic events certainly occurred during those times—I won’t deny that. However, it’s unlikely that the capitals or major cities of powerful nations were frequently caught up in wars. Many people probably never experienced a real sense of mortal peril.”
“True. Having traveled far and wide, I know that few mages actually witnessed the horrors of war firsthand…”
“We don’t know if the Orkus were ambitious, but it’s clear they were exceptionally talented mages. If such individuals received the same evaluation as ordinary people, it’s natural they’d feel resentment. Especially if they lived in peace and already enjoyed a certain level of recognition—they might not have needed such a society in the first place, and destroying it wouldn’t be surprising.”
The Great Sage muttered, “Hmm…” again, lost in thought.
“These talented individuals rose up to create a nation that matched their ideals, one where they’d be properly valued. Others seeking greater happiness supported them, and the rebellion grew. But what if, at that time, there had been an external enemy?”
The Great Sage responded slowly.
“If there had been an enemy, no rebellion could have occurred. They’d fear being exploited by that enemy, unable to pursue their goals. More likely, they’d be suspected of colluding with the enemy, and no one would dare support them.”
“That’s what I believe as well. Hence, Frieden collapsed rapidly. Though historical records claim it fell in just thirty years, I suspect it lasted closer to a century.”
The Great Sage nodded in agreement but quickly raised a question.
“Why do you think that? To my knowledge, historical records only mention Frieden collapsing after thirty years.”
I nodded, acknowledging her point, then explained my reasoning.
“As you said, the records I’ve read also state thirty years. However, upon synthesizing various pieces of information, inconsistencies arise.”
“What inconsistencies?”
Encouraged by her interest, I gained confidence. Still, I remained calm and deliberate in my explanation.
“After Frieden’s collapse, the first nation to emerge was our own Kingdom of Glaiftrum , established in the Unified Calendar year 120. That means a new nation declared its founding 120 years after Frieden’s establishment. If Frieden truly collapsed in year 30, that leaves a 90-year gap with no governing state. Even in a fractured world, it’s more logical to assume remnants of Frieden survived, maintaining some semblance of order.”
This discrepancy puzzled me when studying history.
Legends claim Frieden fell within thirty years, yet there’s a ninety-year gap before the founding of Glaiftrum , the oldest surviving nation on the Endelant continent.
I theorize that year 30 merely marks a large-scale rebellion in Frieden’s capital. In reality, a prolonged civil war likely ensued between the rebels and loyalists, with order only partially restored by the time Glaiftrum was founded.
The basis for this theory is the presence of Advisor Belarater before me. She operates from Glaiftrum . If someone involved in Frieden’s founding now resides here, it’s unlikely she severed ties with Frieden entirely.
During those ninety years, the true process of Frieden’s collapse likely unfolded, with figures tied to Glaiftrum playing a role. Given the unsavory truths involved, omitting them from history might have been a way to legitimize Glaiftrum ’s rule.
“Perhaps Frieden’s collapse was deliberately portrayed as a brief, tragic event—lasting only thirty years—to serve as a cautionary tale. Though the exact reason isn’t clear, I suspect it was to restrict the power of mages.”
“Ah… Now I see why Martin was astonished. Even I am taken aback. You’ve thought this through remarkably well. It’s almost as though you witnessed it yourself…”
The Great Sage looked at me with an expression of disbelief rather than surprise.
Even I find it odd that an eight-year-old boy could speak this way. But knowing that a shallow answer would suggest I was hiding something, I chose to lay bare my thoughts.
“Who are you, boy? Why are you here?”
She fixed me with a sharp gaze.
“I don’t know. All I know is that I am Matthias von Lauschenbach . Beyond that, I don’t know who I am or why I was born…”
With that, I decided to take a gamble.
“Great Sage, I have a question for you. Why was I born? Mythology says humans were created to manage the earth, but I don’t know what exactly I’m supposed to do.”
In this world’s mythology, it’s said that “the gods created the earth and made humans to manage it.” A familiar trope, reminiscent of stories I’d encountered on Earth.
I’d pondered the question of my identity in my past life as a young man, but never found an answer. Likely, no ordinary person could provide one. So I posed the question to her.
“Trying to turn the tables, are we? My questioning was flawed.”
The Great Sage smirked, then continued.
“Did you think evading the question with such smoke and mirrors would work? There’s no way a child like you could have spoken as you did earlier. Boy, let me ask again: who are you?”
Hearing those words, I realized I had lost the gamble.