Investing / Investment Management
Out of context: Reply #5
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- monNom1
If it's a 1% fee fund, it's probably tracking an index like the S&P 500 or the Russel 2000. Both of which you can purchase as a low-cost ETF like Vanguard's VOO (S&P), VTWO (Russel). Those have management expenses of 0.03%.
Losing money over a couple of years is the norm with stocks. You expect to earn average returns over 20-30years, but that line wiggles up and down the whole way there.
Don't sink all your cash into the stock market. 60% equities, 40% bonds is the usual recommendation. You look at your portfolio, say once a year, and sell stocks or bonds to rebalance to that 60/40 split. This locks in gains from good years, but leaves cash to buy stocks when they are cheap.
Also consider what else you can invest that money in to earn a better return than the market. A house has been a pretty darn good investment these last few years. Automation like a CNC router for carving signs or Etsy furniture/decor might supplement your income. Replacing old equipment now might be wise given how prices are rising. Stock up on ramen noodles for the coming apocalypse.