*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!
Yeah, Yeah, Another World, Another World
Unfortunately, I couldn’t make a Scouter.
I spent time modifying sunglasses to incorporate the functions of the wristband, even skipping lunch, but I wasn’t able to grant them the ability to detect a person’s combat power.
While tidying up the room again and discussing things with Okuda, I noticed Hayato outside, enjoying the sunlight while wearing the failed sunglasses. He was chatting with Aoi as he looked out the window.
“Wow, it’s really not dazzling at all! Sunglasses are fun!”
“Yeah, let me try them on too!”
Watching the two from behind, I mused that kids probably don’t get many opportunities to use sunglasses. Just as I was thinking that, Aoi suddenly said something that threw me into a panic.
“You’re right, sunglasses might actually be fun. Lodging, 30 Rins. Rest, 17 Rins. Umm, free-time plan, weekdays from 5 AM to 6 PM…”
“Wait, wait, wait!! Aoi, what are you even saying all of a sudden?!”
A phrase no middle school girl should ever say had just slipped from her lips, so I hurriedly stopped her.
“What were you just talking about?”
“I was just reading the sign across the street… Oh! I could read the letters!”
I failed to create a Scouter, but instead, I seem to have accidentally developed a translation device.
It turns out I had been mistaken in trying to use a magic catalyst designed for translation to measure physical strength.
Maybe one day, if I obtain a magic catalyst for measuring mana or physical strength, it’d be interesting to incorporate it into the sunglasses.
“It looks like there’s a love hotel across the street,” Okuda said, grinning at me.
Cut it out. There are kids here.
◇◇◇◇◇
Wearing sunglasses all the time would attract too much attention, so I removed the magic catalyst from them and returned it to the wristband. Then, I headed to the Northern Adventurers’ Guild for a late lunch.
I was also hoping to get some information about the guild registration request while I was there.
After leaving the inn and walking for a while, I reached the central intersection of the city. There, I spotted Osāto , who had guided us around town yesterday.
She noticed me as well and approached.
“Hello!”
“”Hello!””
“Oh? Today, everyone is wearing a translation device, I see.”
“Yeah, we bought them this morning.”
“Are you heading to the labyrinth today?”
“No, we were doing some work at the inn, and time just flew by. We’re heading to the Northern Adventurers’ Guild for some information gathering and a late lunch.”
“I’m interested in labyrinth adventuring, too. Would it be alright if I joined you?”
“Sure, let’s go together.”
◇◇◇◇◇
“Misaki-san, hey there.”
At the entrance of the Adventurers’ Guild, we ran into the pushy guy from yesterday. For some reason, he was greeting Okuda.
“Are you here to register today?”
Okuda responded, denying it.
Why is this guy hanging around here at this hour? Aren’t you an adventurer? Go on an adventure or something.
The same table as yesterday was open, so the seven of us sat down. But why did the pushy guy sit with us, too?
I looked around at everyone and made an announcement.
“Well, we had some good things happen today, so let’s celebrate! Order whatever you want and enjoy!”
Thus, an impromptu celebration began.
◇◇◇◇◇
“You got translation magic tools for everyone just overnight?”
“When it comes to investing in breaking the curse, I don’t spare any expenses.”
Okuda and the pushy guy were having a conversation.
It seemed yesterday’s setting was still in place.
Since we had actually gotten younger and were gathering information to return to Earth, not everything was a lie. The only exaggeration had been about… certain physical attributes.
“Here’s your fruit juice!”
The waitress placed the juice on the table and took a few coins from a basket on the table.
At this tavern, when holding a banquet, it was customary to place some coins in the basket in advance. As new orders were brought, the payment would be taken automatically.
“Don’t try to pocket any, alright?”
“Geh! Rocco?! Why are you with such a fresh-faced party?!”
So, the pushy guy’s name was Rocco.
And now, Rocco was picking a fight with the waitress.
“They asked me about labyrinth exploration yesterday.”
Did we?
“You guys shouldn’t be consulting someone like him! As you can see, he’s rough, quick to fight, and he stinks.”
Well, she wasn’t wrong. But in this era, wasn’t a little odor just part of life?
“Are you knowledgeable about labyrinth exploration and the Adventurers’ Guild?”
“My name’s Rio Ento. Call me Rio. Today, I’m working as a waitress, but I usually work at the guild reception desk, so I know a lot about labyrinths.”
She gestured toward the reception counter with her thumb as she spoke.
Following her lead, we all introduced ourselves. For some reason, Rocco joined in too. His full name was Rocco Camid. It actually had a pretty cool ring to it.
On the other hand, Osāto didn’t mention a family name. Did she not have one? Or was she just keeping it private? Since I wasn’t familiar with this country’s customs yet, I decided not to ask.
“I used to be part of a labyrinth adventurer party before working here. So? Interested in hearing my stories?”
Rio asked with a bright smile on her face.
“Yes, please tell us,” I replied.
“Then it’s settled.”
With that, Rio went to the food pickup counter, spoke to another waitress, and then returned to our table with a mug of beer in hand.
“This is the consultation fee.”
She took a few coins from the basket on the table, showed them to us, and then pocketed them. After removing the triangular headscarf she had been wearing, she tied her voluminous blonde hair into a ponytail, raised the mug, and drank it all in one go.
“Ahh! Now, let’s get started. How much did you hear from Rocco?”
“Is it okay to talk during work?”
“It’s fine, there’s hardly any customers at this time.”
When she said that, I looked around the dining room. It was a time between lunch and dinner, so it was a bit too late for lunch and too early for dinner. There were no other customers in sight. The waitress who had spoken to Rio earlier was sitting in front of the food counter, chatting with someone behind the counter.
“Well, I only heard about the guild registration so far. Can I ask about the details of the quests that are given when you register?”
When I asked that, Rio immediately began explaining.
“There’s no problem with knowing the details of the registration quest in advance. There’s no time limit, so whether you start consulting after accepting the quest or ask about it beforehand, it doesn’t really make a difference.”
Rio took another sip of beer.
“Most registration quests are gathering quests. You go into the labyrinth, get the specified items, and come back. That’s all. You won’t know exactly what and how much you need to bring back until you accept the quest. The quests are limited to ones that can be completed in a day, though.”
“I’ll go along for the registration quest.”
Rocco suddenly chimed in.
“I want to join too.”
Osato also joined in.
I was puzzled by their sudden suggestions, so I asked Rio.
“Is it okay for people who aren’t party members to join?”
“Not a problem at all. The guild only cares about the items being brought back. To be extreme, you could gather a hundred helpers to go into the labyrinth, or buy the requested items at a store and submit them. The guild doesn’t mind how you complete the quest. It’s just a test of the party’s skills. But if you hire a lot of people, you’d likely end up in the red from the cost of hiring, so I don’t know if it’d be beneficial for the party.”
I see. From the guild’s perspective, as long as the result is there, it doesn’t matter what methods are used. For the party, it only matters whether the reward, after deducting the costs, is worth sharing among the members.
If you hire poor orphans for cheap and send them into the labyrinth, and then keep the profits…
Wait, that’s a bad thought. I must shake that off.
“Well, in that case, let’s all go together. Rocco is fine, but Osato-chan has no equipment, right? We can have Rocco show you where to get equipment and tools. Of course, we’ll cover the costs of the equipment. We’re not fully prepared yet either, right, everyone?”
“Rocco is unnecessary, but Osato-chan needs it.”
When Okuda gave that straight answer, Rocco looked at him with teary eyes.
“For your reference, a party of about 4 to 6 members is recommended for labyrinth exploration. Even 8 members is okay, but it’s better to keep it to that limit.”
Rio explained.
“Due to the width of the labyrinth’s corridors, there’s a limit to the number of people who can be active in a battle. If there are too many people, the ones in the back just end up watching.”
I see, so there’s also the problem of the size of the corridors.
“When I was an adventurer, we had three warriors in the front line, me as a scout, and two magic tool users—six people in total.”
Rio had been a scout. If I try to imagine our party based on her, it would be something like this:
Office worker, office worker, driver Middle schooler, elementary schooler, scrawny kid + thug
It sounds incredibly weak.
Well, in reality…
Magic tool user, great sword magic tool user? Magic tool user Magic tool user, self-proclaimed ninja, hungry child + delinquent
It’s a crazy mix. I wonder if this setup will work…
“Sorry for the late question, but what kind of items can be found in the labyrinth here?”
“Huh? I thought you guys had a specific item in mind that you were trying to get from this labyrinth,” Rio said.
“Why did you think that?”
“Well, first of all, your attire. Since you’re all wearing translation bracelets, it doesn’t look like you’re going into the labyrinth just to make money. Your clothes are also odd but obviously high quality. And since the young ones came to this city where they don’t understand the language, I assumed you had targeted specific items from the labyrinth here.”
She was quite accurate. I guess being a former scout, her intuition is sharp. It’s probably better not to lie, so I decided to give a half-truth.
“You’re mostly right. It’s not that we’re targeting a specific item, but we’re gathering broad information about the labyrinth.”
“I see. So, are you students from the magic academy?”
“No, please don’t misunderstand.”
It seemed like she was making an assumption, so I didn’t confirm or deny it.
“Sorry, I shouldn’t pry.”
“Thank you.”
I was relieved she didn’t press further. Despite her carefree attitude, she was quite refined.
“I’d like to ask the earlier question. The labyrinth near the city of Rifoku produces more relics than other labyrinths.”
So this city is called Rifoku.
“Are there things like the Fool’s Memoirs?”
“Yes, exactly. You know about the Fool’s Memoirs? Oh, you must’ve heard about it when you bought the translation bracelets.”
“That’s right.”
“The Fool’s Memoirs are rare, but relics like Maiden’s Holy Water and Wet Honey Pots are found quite often.”
Wait, what? Why are we suddenly talking about such inappropriate things?
“Pffft, Wet Honey Pots are found! Hahaha!”
Okuda, don’t make jokes like that!
“Sorry, I don’t know what those two relics are. Could you tell me about them?”
Rio gave me a somewhat surprised look before explaining.
“Maiden’s Holy Water is really famous. You might have one? It’s a tube-shaped relic that’s often used as a water bottle.”
“Oh, I bought one this morning at the magic tool store. So that’s what it’s used for.”
“Yes, it’s made with magic stones, so only merchants and adventurers who leave the city tend to have them, but they’re really convenient.”
Who would name a relic like that?
“The Wet Honey Pot is a local specialty. As the name suggests, it’s a pot-shaped relic. You put vegetables, fruits, or any food inside, seal it, and after about a week, the food inside turns into a sweet liquid.”
“Wait, Wet Honey Pots are a specialty here?”
Stop making jokes like that!
“Most of the restaurants in this city have them. The sauce used to marinate meat in this diner was made using one of those.”
It was the sauce on the mystery meat last night.
“We ate that last night. It was really delicious.”
“There are other relics too, but that’s what we find most often here. Other than that, you’ll find magical substances that can be found in any labyrinth.”
After a bit of embarrassment, I also had Rio explain about magical substances. These are materials that have been exposed to the magic of the labyrinth for a long time and acquire different properties from their original ones. These are collectively called “magical substances.”
Because the labyrinth is built from stone, plant-based magical substances are hard to find, though some special plants inside certain labyrinths can produce them.
When I asked if the plants near the entrance of the labyrinth change into magical substances, Rio said that no magical substances have been found in plants right at the entrance.
Huh? Really?
Then, something I couldn’t ignore was revealed by Rio.
“I heard that at the deepest part of the labyrinth, there are relics from a different world that can be found. The deepest part hasn’t been discovered here yet, though.”
What????