*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.
The capital city of Shwerrenburg , in the Kingdom of Glaiftrum; the residence of Viscount Lauschenbach. Matthias von Lauschenbach.
I was asked by the Great Sage Magda who I was.
In response, I couldn’t answer what I was. Instead, I returned her question with a philosophical query: why are humans born?
However, the Great Sage wasn’t satisfied with that answer.
“Do you think you can deceive me with such smoke and mirrors? A child like you wouldn’t be able to engage in the kind of conversation we just had. Boy, let me ask again—what are you?”
“Then what should I do? I truly don’t know who I am…”
I spoke honestly about my confusion.
But it seemed the Great Sage had some way of verifying my words, as she confidently began explaining.
“If I check, I’ll immediately know the truth. Even if you were an Untier, a demon beast from the magical realm of Seere, no matter how much you’ve disguised yourself.”
The magical realm of Seere is apparently another world separate from this one, known as the Manifest World (Soma), where energy that spawns magical beasts and sorcery swirls around. Conceptually, I vaguely understood, but I couldn’t find detailed information in any books here.
What I did understand was that the Great Sage suspected I might be a type of demonic beast or demon. Realizing there would be no escaping this, I steeled myself.
“Please investigate. I too wish to know who I am.”
“That’s a good attitude.”
With those words, the Great Sage approached me.
“Is this not dangerous?”
Dr. Netzer, who had been silent until now, spoke up with a worried expression.
“You stay back. Even if it were a calamity-level demon god, I could handle it.”
A calamity-level refers to a rank among the demon beasts (Untier), so dangerous that their existence threatens the survival of nations.
I was awed to realize that the elderly woman before me had the confidence to say something like that without hesitation.
After saying that much, the Great Sage raised her hand over the area of my heart.
I watched it absentmindedly, but aside from a faint warmth, I felt nothing unusual.
The Great Sage kept her hand there for about a minute before slowly withdrawing it. Her stern expression softened into one filled with kindness.
“I’ve determined that this boy is not an Untier. I sense no magical essence (Pneuma) within him. Moreover, he doesn’t even possess a magic converter (Roa).”
Mr. Netzer reacted to her words.
“No trace of Pneuma… no Roa… So that’s why I felt no resistance when I healed him earlier. Indeed, it’s impossible for an Untier to exist without a Roa.”
The Great Sage nodded approvingly at his remark.
“Precisely. If someone were to manifest from the magical realm of Seere, they must have a Roa connecting them to that realm. Without it, they cannot sustain their powers. And it’s impossible to lack Pneuma or deceive me.”
More than half of what she said was unclear to me, but apparently, because I lacked any form of mana or a mana-converting organ, all suspicion of me being a magical beast had vanished.
Though I wanted to sigh in relief, I held back, choosing instead to smile with determination.
“I apologize for doubting you. It seems certain now that you are indeed a Commoner (Mensch). Though you do seem to have a rather unique constitution.”
As she said this, she touched my cheek.
I later learned that even among humans—or “Commoners” in this world—most possess an organ called a Roa. Only rarely are individuals born without one, and in such cases, they are completely incapable of using magic.
“I hold no ill will.”
Though I responded politely, I felt a strange sensation from her touch. Despite her appearance as a knotted-fingered old woman, her hands were unusually soft, and carried a sweet fragrance akin to that of a young woman.
Curious, I decided to ask outright.
“Are you perhaps altering your appearance?”
The Great Sage widened her eyes at my question.
“Why do you think that?”
“The texture of your hand felt very soft, unlike your appearance. Also, I read in a book that Forest Elves (Elfe), who are long-lived, never grow old. So I wondered if you might not be a Forest Elf.”
The Great Sage looked impressed.
“You are quite clever. I’ve shaken countless hands, yet you’re the first to comment on their softness.”
With a smirk, she slowly turned her back to me.
“This appearance is only temporary. Though I am not a Forest Elf.”
With swift, agile movement, she turned back to face me.
The white-haired old woman had transformed into a beautiful young woman with black hair. She had a prominent forehead, fair skin, large obsidian eyes, and pink, perfectly shaped lips. Though she bore no resemblance to any race from Earth, her beauty was overwhelming.
“This is my true form. Only the members of the Guardians of Wisdom (Weisswache) and a select few from the Glaiftrum royal family know it. But alas, people say I don’t look much like a Great Sage in this form. Foforo~”
Her manner of speech fit better with her previous sharp-eyed, elderly persona.
The Great Sage then adopted a serious expression.
“Boy, do you not wish to test what purpose you were born for?”
Confused by her sudden question, I hesitated.
“What do you mean?”
“You possess extraordinary intelligence. However, without knowledge, intelligence cannot fully flourish.”
Though I understood the general statement, I still found myself perplexed.
“I see what you mean, but…”
“In our tower of the Guardians of Wisdom, there are tens of thousands of books, some dating back thousands of years to what people call the age of mythology. Aside from myself, there are also Great Archmages and Masters who could answer your questions. What do you say? Will you come to our tower?”
At the Great Sage’s words, Mr. Netzer, who had been standing behind her, gasped in surprise.
“Isn’t this the first time Lady Magda has personally extended such an invitation?”
“Indeed. But this boy lacks the aptitude to use magic. He won’t be accepted as a Mage—it’s more of a whim.”
Listening to their exchange, I struggled to process everything.
The legendary figure who has lived since mythological times had invited me—acknowledging my abilities…
But I’m not worth that much. My recent insight stemmed from knowledge I had from Japan. While it might be impressive coming from an eight-year-old, any socially educated adult in Japan could have said the same thing. There’s no shortage of such people.
If I were to accept and go to the Mage’s Tower, it would only be a matter of time before my inadequacies were exposed.
And when that happens, suspicions about me could resurface. Though I now have the endorsement of the world’s wisest person, revealing that I have memories from another life would be dangerous.
“Your offer is flattering, but as you can see, my health is fragile, and I haven’t even received a basic education yet. I’m unworthy of troubling the Great Sage, let alone the Masters.”
Though I tried to decline, the Great Sage chuckled and turned her gaze to Mr. Netzer.
“Martin, though the boy says this, may I hear your thoughts?”
Mr. Netzer gave a slight bow before speaking.
“As Matthias says, his body isn’t in perfect condition. Therefore, receiving treatment at the tower would benefit him greatly. As for his education, after observing him these past two months, I’ve never met anyone who exemplifies the phrase ‘hears one, understands ten’ as well as he does. While he may lack in certain areas of knowledge, it would be far more efficient for him to learn under the guidance of the Masters at the tower than to continue here.”
“Hmm. I agree. It’s been decades since I’ve encountered a scholar wise enough to impress me—perhaps even since before Oswald declared himself emperor, over fifty years ago.”
At this, Mr. Netzer looked astonished.
“Do you mean Oswald the Second, the first emperor who founded the Zoldata Empire?”
“Yes. Though he was already over forty at the time. This boy is incomparable.”
It seems I was being compared to the founder of the emerging Zoldata Empire, but as my evaluation grew higher, my stomach churned uneasily.
(Incidentally, I later learned that despite being the first emperor, Oswald was called the “Second” because the founding year of the Zoldata Republic, which preceded the empire, was retroactively counted as the empire’s first year, creating the need for an “Oswald the First.”)
“In that case, let us inform the viscount that the Guardians of Wisdom will take Matthias for treatment purposes. The viscount and his wife must surely be concerned about Matthias’s health.”
“That’s a good idea. Then, it’s settled.”
Before I knew it, the decision had been made, leaving me flustered.
“W-wait! Um…”
I tried to stop them, but neither the Great Sage nor Mr. Netzer paid attention to me, moving forward with their arrangements.
“It’s a ten-day journey from here. The season is favorable now, but it’d be best if he built up a bit more strength… Considering other preparations as well, it would be better to allow another fortnight…”
Without consulting me, the plans progressed rapidly.
I tried to decline several times, but my protests were dismissed as modesty, and no one took me seriously.
When the discussion involved my parents, both were deeply moved that the Great Sage herself had arranged for my treatment, completely cutting off any possibility of refusal.
(I need to make sure I don’t slip up… but can I really pull this off? I’m no genius—I’m just an ordinary person…)
Though I inwardly despaired, unable to do anything further, I resigned myself to the situation with a bitter smile.