*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
“Another world, you say?”
The story Rio shared contained important information that couldn’t be ignored.
“Yes. Apparently, there are amazing treasures that can’t be created in this world. How do you feel? Exciting, right?”
Exciting? I’m more on edge, nervous, and restless.
“I see. If it’s such a rare treasure, I’m definitely interested. By the way, what kind of treasure is it?”
“That treasure is called a ‘Seismic Relic’ because it shakes the world significantly, not only affecting the person who gets it but also those around them and even entire nations. There’s one thing all these treasures have in common, though—they don’t contain any magic essence.”
“Huh? Is that important?”
“Everything in this world, big or small, contains magic essence—whether it’s water, flowers, stones, trolls, goblins, or even rocco. Everything has some magic essence.”
“Why did you put me in the monster category?!”
“Because the seismic relics are the only objects that deviate from this rule.”
I see. So, by measuring the magic essence in an object, you can tell if it’s a seismic relic or not.
“Anyway, seismic relics have various abilities, but my favorite one is the ‘Silver Steed.'”
That sounds like a cool name.
“When this relic was discovered, they didn’t know what kind of ability it had, so it was transported for research outside of the labyrinth. The relic was covered in a silver substance that couldn’t be identified as metal or clay, and at first, it was thought to be a piece of art. But during research, it suddenly came to life and started breathing with a ‘thud-thud-thud!’ Everyone was shocked! One of the researchers grabbed the reins, and the steed bolted off at an incredible speed.”
Maybe it’s a silver scooter?
“Faster than any famous horse, this steed was believed to be useful for relaying battle information across lands. However, the first prince of the country where the relic was found secretly took the Silver Steed and tried to ride it. The prince couldn’t control the steed and crashed into the castle wall, injuring himself severely.”
Seems like there are foolish princes in every world.
“The prince’s crash killed the steed, and upon hearing this, the king was furious and disinherited the first prince, exiling him from the country. That foolish former first prince is the rocco standing right there.”
“That’s not me!!”
You’ve been joining in on the conversation perfectly all this time.
“The king, who disinherited his first son, died shortly after from illness. Since the first prince was the only direct heir, the kingdom plunged into a civil war over the throne. The country fell apart, the people fled, and the country is now gone. The name of that vanished kingdom was…”
“There’s no country called Rocco!!”
I couldn’t help but clap.
These two could probably make a living doing this.
“Indeed, as expected of something called ‘seismic.'”
“It was so interesting!”
Hayato-kun is also singing praises.
“There are other seismic relics like the ‘Ebony Coffin’ that produces a beautiful sound, the ‘Golden Seeds’ that saved a country suffering from food shortages, and the ‘Multicolor Silver Tube’ that changes the color of anything in front of it.”
A piano, corn seeds, and a spray can?
“The Multicolor Silver Tube has an interesting story. It wasn’t just one relic, but a collection of them. Some changed things to red, some to blue, and they were discovered at the same time. Just before the labyrinth was conquered, a charcoal burner living near the labyrinth found an identical one in the forest.”
I made eye contact with Okuda.
“The charcoal burner thought it was a magical tool someone had dropped, so he took it to the town’s guard post. A few days later, adventurers who had conquered the labyrinth returned to town and held a showcase for the relics they found. The guards who had been assigned to security were shocked to see the relic; it was exactly the same one the charcoal burner had brought in.”
Could this mean sometimes people get summoned a little outside the labyrinth’s main area?
“When this became widely known, people started going to the labyrinth hoping to find seismic relics themselves, walking with their eyes on the ground. This story became the origin of the phrase ‘walking like you’re heading to the labyrinth,’ meaning someone walking with their head down.”
So, it seems like Okuda and I were summoned somewhere off from where we were supposed to be, just like that charcoal burner’s spray can.
If we’d been summoned to the same place as Matsushita and the others, it would have been dangerous. We might still be shaking from the skeletons.
Aoi-chan was listening with sparkling eyes and suddenly started speaking as if she’d thought of something.
“This was really useful. So, it’s like ‘Rocco walked out of the gambling den with the walk of someone heading to the labyrinth.’ Is that right?”
“Why do I have to be used as an example for losing?!”
Rio, with a big smile, gave her approval.
“Perfect!!!”
◇◇◇◇◇
I’ve gathered a lot of information all at once.
It seems like we were summoned as some sort of reward for reaching the deepest part of the labyrinth.
So, the temple where we found the Inaba siblings and Matsushita-san must have been the labyrinth’s final chamber.
But wait, didn’t they say that when the door to the room opened, skeletons poured in?
Could it be that an adventurer fought a boss in the next room, leaving behind a bunch of skeletons, and when the final door opened, the reward—us—was summoned?
I’m glad I didn’t go to the next room… I might have faced the remains of the adventurers who had exhausted themselves. I’m not sure I could have handled the shock.
As I was thinking about that, a question suddenly popped into my head, so I asked Rio.
“But why were you so sure that we were sent from another world? Couldn’t it be from the future, or from a faraway country with advanced technology?”
Upon hearing my question, Rio stood proudly and answered.
“That’s clear. Because the seismic relic itself told us it came from another world.”
Huh? What does that mean???