I'm looking to invest (long term) in a broad fund to match the market. Any advice? I'm kind of naive here.

There are 2 options that investors can choose from when it comes to investing in market tracking funds.

1. Passive Index Funds, which are a class of mutual fund that attempts to track the a specific index (such as the S&P 500 or the Nasdaq Composite) by holding all the stock components that the underlying index has. The big benefit to new investors is that you do not need to open a brokerage account to purchase these funds. You can simply purchase them at most banks and without incur transaction costs. Examples of popular index funds include the Vanguard family of index funds and the Fidelity family of index funds.

2. Exchange Traded Funds (ETF): this type of financial instrument is very similar to a index fund except for the fact that you can buy and sell them more easily like a stock. With that said, you will need to open up a brokerage account to purchase them and pay transaction costs (brokerage's commission) whenever you deal with them (costs will vary depending on the brokerage that you deal with). Example of popular ETFs include SPY (which tracks the S&P 500 index), DIA (which tracks the Dow Jones Industrial Average) and QQQQ (which tracks the Nasdaq 100).

In both cases, part of the index fund and ETF's annual return will be subject to management fees, but ETF's tend to have lower fees as a whole. Another consideration is that index funds automatically reinvest dividends back into the fund whereas ETFs tend to give the dividends as quarterly distributions back to the investor.

It is a good idea to get started while you are young. Eventually, you have to decide whether you are going to learn how to manage your money or hook up with a professional. If you go the professional route the risk is that the professional will put you investments that make him the most money rather than what is best for you. If you decide to do that probably the best way to go is a "fee only" certified financial planner who charges a set fee, isn't associated with a brokerage firm, insurance company etc. The fee might be a little steep but you have a better chance of getting recommendations that fit your needs. The advantage is having someone who is knowledgable about investments, risk, taxes etc. So he/she might be able to give you a comprehensive "life" plan.

If you want to learn to manage your money yourself you can still get the plan from the "fee only" financial planner but then implement it on your own. If you are just starting out I would stay away from a brokerage account and individual stocks and buy mutual funds from Vanguard, Fidelity or T.Rowe Price. (my favorite is vanguard)

I put my daughters in Vanguard's Star Fund which is balanced between large, small, and international stocks and some bonds. The minimum investment is $ 1000. After that you can sign up to have $ 100 or more taken out of you bank account and automatically invested. These companies have web sites that are geared to new investors and you can get investment suggestions based on your age and the amount of risk you can tolerate. Some funds (index funds)have very low expenses - close to EFTs that have been mentioned. If you are going to invest a little at a time EFT's are not so good since there is a brokerage charge for each buy and sell.

Whatever method you choose start to educate yourself on investments. Unlike most things you learn in school - knowing how to manage your money will be a life long benefit. Yahoo Finance, Morningstar, Money Magazine have good, user friendly articles. Good Luck

The answer somewhat depends on the particular market you would like to match and what index you wight wish to use as a benchmark. If you wish to emulate the return of the S&P 500--a very popular pass time these days--SPY is an exchange traded index fund that will do that. Many mutual fund companies also have index funds available to match the S&P 500. Vanguard has one. That company actually invented the concept. Here is a link to their web site.

https://flagship.vanguard.com/VGApp/hnw/FundsByTyp...

Now the S&P 500 index is not so broad as one would be led to believe. In fact it is rather narrow. No foreign stock and about 20 of the stocks in the index accout for about 30% of the value of the index. There is an index fund based on the S&P500 that is more broadly diversified. RSP. Each stock has the same weighting in the index as opposed to being capitalization weighted. But still not foreign investments. In this day and age one really requires a world markets index fund. One can invest in several different mutual funds or index funds to achieve the broad diversity. There are a few one stop mutual funds that attempt to achieve such a diversity. One is Vanguard Global Equity Fund--VHGEX.

https://flagship.vanguard.com/VGApp/hnw/funds/hold...

Another is T Rowe Price Global Stock--PRGSX

http://www.troweprice.com/common/indexFundFacts/0,...

The advice you have been given is flawed. While the "market" has gone up, the long term average return is about 2% after adjusting for inflation. You can do much better. If you are dead-set on stocks, you should read Rule Number One by Phil Town.

Consider a Roth IRA as a vehicle to invest in real estate. Speak to a financial planner about a Roth IRA. There are many benefits.

I don't know how the market is in your area but, real estate might be what you are looking for. A house doesn't loose value. Its' value always goes up with time. Buy houses and rent them out. The rent will cover most of your mortgage (all if you do it right), and you'll cash out when you sell. The house will basicly cost you nothing since rent will cover your mortgage.

That's a low risk investment, and, depending on the area, it can be very profitable. People will ALWAYS need a place to live.

STOP! If you are young you should not be getting married. No way young people should be married. Explore a little more--please.

LOVE DOES NOT NEED TO BE MARRIED!

Second, low-risk and maximum returns do not go together.

Third, start by rethinking your decision to get married.

Fourth, financial management should be taught in every school. Here you are, college educated, having the need to resort to Yahoo for answers to such crucial questions.

SERIOUSLY RETHINK EVERYTHING YOU ARE PLANNING.

Vanguard.com is ideal for long term investors who want to learn about mutual funds, index funds, and exchange-traded-funds (ETFs). Trading funds is less risky than trying to trade "individual" stocks.

Vanguard is very well-known for their excellent service and low fees.

The websites below all contain plenty of FREE information to get you started in the right direction.

The easiest thing you can do is to buy one of two exchange traded funds that hold all the stocks in the S&P 500. Either:

The iShares fund (IVV)

SPDR (SPY)

Both can be bought through any broker and have very low fees.

Buy stock that consistently give 15% ROE and EPSGR for at least 10 - 15 years.

high ROE shows its management able to utilise shareholders money for profits. high EPSGR show the company offer products that able to grow over time.

then calculate it intrinsic value by discounting its future value to NPV. last but not least, invest when the time comes (or within its margin of safety).

Step-by-Step Stock Investing for Beginners

http://www.stock-investment-made-easy.com/index.ht...

Buy an ETF (exchange traded fund) and not a mutual fund. ETF's have lower fees.

Buy one that is geared to match the S&P 500.

Check out: http://www.rydexfunds.com/etfs/profile.cfm