With so many companies and stocks to invest in and with all the ups and downs on Wall Street investing in the stock market can be confusing and scary.
Most financial planners I know recommend putting 90% of your stock money in a broad U.S index fund or Exchange Traded Funds (ETF)and the other 10% in an international stock fund or ETF. This is a solid long term strategy for your stock portfolio.
Some good choices for your U.S. investments are the Vanguard Total Stock Market Index Fund (VTSMX) and ETF counterpart, the Vanguard Total Stock Market ETF (VTI).
You can opt for the Vanguard Total International Stock Index (VGTSX) or the iShares MSCI EAFE ETF (EFA) for the international portion of your stock market investments.
Investing in the stock market can be scary right now, but history shows that investing in the stock market pays the biggest return on your investments in the long run. And remember what goes down will come up!
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