So I heard Clark Howard say on Morning Express this AM while working off some working from home pounds. As usual, if I hear something worth blogging and am not at my computer (approximately 7% of the day) I made a note to myself on my Blackberry and looked it up when I got home. It appears this an evergreen for Mr Howard, as I found the story on his blog with a dateline of May 6, 2009.
One thing I don’t think his story makes clear is that these are unusually low entry and maintenance costs for index funds. There are many funds with similar entry levels. Other funds can be entered at the same low cost point if you are using an automatic monthly investment plan.
I fully agree with the enthusiasm in today’s broadcast for the ability for people to have a low entry point to investing. It may be a good idea to start with a money market fund if things are tight. While the reward is far less, the expenses are also less and the risk is as near zero as possible. Then you can build up your initial investment and broaden your choices.