We here at MoneyNing.com recommend low cost index funds for the individual investor. Sometimes we write out a good argument, and sometimes we simply state it as fact. This article illustrates what happened with one of our reader’s investment portfolio so you can judge for yourselves whether low cost index funds is for you.

MoneyNing,

I am on the west coast and the US stock market is already open when I get to the office. Sometimes I check the performance of my stocks, and other times I do not (actually, I check it all the time). When I did check stock prices this morning, I noticed that the money in my taxable account went down by 12%. I looked into the details and realized what happened. One of my stocks just reported earnings and the stock went down 20%. Since I had a ton of money in this stock, I was hurt badly. Really bad. Panicking, I sold every share I owned in the stock. I sold my holdings in Apple too because I was afraid Apple was going to down after it reports later that day. I’m really pissed off right now because I checked after hours and Apple is up more than 10% since I sold it. I realized I was being dumb and really want to see if you can recommend some low-cost index funds for me to own since I am clearly not cut out for stock picking.

Regards,
MoneyNing Reader

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clean carpets cheap

As I’m walking around my home I can tell it’s early summertime. Between the natural deposits from the muddy shoes of a Midwest spring, having over a hundred people walking through my home for a party over Memorial Day weekend, and just life with two teenagers, and two cats, there are many visible spots in our carpets.

Every spring and fall I make an assessment of our carpets and plan to have them shampooed and cleaned. I choose from three different options and always compare them for the best price and service.

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importance of thrift

Being financially responsible throughout life can lead to less stress and fewer worries. One way to put this into practice is to get thrifty.

You can either sell your used items, or buy used from someone else. If you put in some time, you’ll find that being thrifty is an excellent way to save money.

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Recent studies have shown that a large percentage of young adults under 35 are declining enrollment in employer-provided retirement plans. Considering the economy, it’s understandable that many young adults are finding it impossible to focus on things any further off than paying student loan debt, purchasing a home or vehicle, and getting started in their careers.

Many won’t be financially able to leave their parents’ home until well into their twenties. Even if they’re interested, today’s young adults find it hard to sacrifice a portion of their often meager wages for retirement savings. Especially if they’re barely getting by as it is.

Considering this trend in the next generation, some companies that employ mostly younger adults aren’t bothering to offer retirement plan options and are choosing instead to pay higher wages. While this may be saving companies money and allowing Generation Y or Millennial adults to channel their money into immediate debt-payoff or other savings goals, it’s not encouraging the younger generations to think about and plan for the future.

Market research shows that those who are actively saving and investing for their retirement are in the 35-65 age bracket. But, according to many financial experts, this is alarmingly late in the game. The obvious dilemma is that young adults need to start saving for retirement as soon as possible — while not floundering under other financial obligations. It’s a challenge, but it can be done.

Here are four retirement tips that young adults can start implementing now.
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What truly constitutes an emergency? Many of us tend to justify taking money out of our rainy day fund by calling something an emergency when, really, it’s not a true emergency. As you work on building your emergency fund, take a step back and consider how you will use the money you accumulate.

Dr. Stephen Lesavich, the co-author of The Plastic Effect: How Urban Legends Influence the Use and Misuse of Credit Cards, suggests to create spending rules so your emergency fund doesn’t become a sort-of general fund that you raid whenever you feel like it. Here’s how to put spending rules on your emergency fund, that you’ll actually stick to.

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Have you ever thought about where your spending habits come from? We all know that some of us have a hard time saving money, while others find it difficult or painful to spend their hard-earned cash.

Some of your money management style comes from your upbringing — the lessons your parents taught (or didn’t teach) you either by example or instruction.

What’s interesting, though, is that children often grow up with very different habits for handling money than their parents or siblings. Why is this? Well, essentially it’s because of the psychology of spending vs. saving.

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