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    Introduction to Index Funds and ETF's - Passive Investing for Beginners
    Introduction to Index Funds and ETF's - Passive Investing for Beginners
    Introduction to Index Funds and ETF's - Passive Investing for Beginners
    Ebook30 pages23 minutes

    Introduction to Index Funds and ETF's - Passive Investing for Beginners

    By Richard Whelton

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    About this ebook

    It’s time to learn the basic strategies of passive investing and get your money working for you. The earlier you start investing, the more time your money will have to grow, but taking this step can be overwhelming. In this guide, you will learn what is involved with investing in index funds and ETF’s.

    Inside you’ll find…
    • The Risk Return Theory, and how it affects your investment choices
    • The problem with stock picking, especially for beginners
    • Selecting your passive investments
    • Why you need to start investing now, even if you just have a small amount of money
    • And more!

    LanguageEnglish
    PublisherRichard Whelton
    Release dateOct 3, 2013
    ISBN9781497754850
    Introduction to Index Funds and ETF's - Passive Investing for Beginners
    Author

    Richard Whelton

    Richard Whelton has a day job as a school teacher and he makes sure that part of his salary goes towards investing. Richard uses passive investing technique and his portfolio is comprised of index funds and ETF's. He belongs to John Bogle's school of investing whereby active stock picking is not encouraged.

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    • 3/5
      One should actually have a BALANCE between active trading and passive investing: Makes life so much more interesting! -WSDB

    Book preview

    Introduction to Index Funds and ETF's - Passive Investing for Beginners - Richard Whelton

    Passive income is the goal that most people have in mind when they begin any sort of investing venture. Whether they are investing just for fun, some extra money, or retirement, passive income is the light at the end of the tunnel.

    One definition of passive income is,income that does not require active participation. In other words, you set up a system that makes money, regardless of any continuing effort you put into the system.

    Some examples of passive income include: real estate rental properties, dividend paying stocks, money lending, and long term investing in index funds, or ETF’s. Some people would argue that none of these methods are purely passive, but some do come closer than others.

    In this book we are going to cover two main forms of passive income within the stock market, along with a few alternatives that still produce amazing results.

    Both of the stock market investment vehicles are uniquely suited for beginner investors and will make a responsible addition to any investment portfolio.

    Let’s go ahead and dive right in!

    Chapter 1: Stocks, Bonds, and Mutual Funds

    While we prefer to stick with index funds and ETF’s for the majority of our passive investing, you will need a good working knowledge of different components of the market. So lets do a quick overview of three main players.

    Stocks

    There are three categories in which you may place stocks; they are income, growth, and value.

    -Income Stocks have a huge potential to create passive income for the purchaser. Income

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