💰 All about investing

We're diving into two key strategies for smart investing: diversification and low-cost ETFs. We'll explore how spreading your investments across various assets can help reduce risk and stabilize your portfolio. Plus, we'll look at why investing in low-cost index funds and ETFs is a great way to achieve long-term growth. Let's get started on building a more secure and prosperous financial future together!

- Milan

IN THE STOCKS

• S&P 500 5,464.62 (-0.16%)
• NASDAQ 17,689.36 (-0.18%)
• Dow Jones 39,150.33 (0.040%)

*Stock data as of closing on June 21st.

THE MONEY BREAKDOWN

“Diversification”

Diversification means spreading your investments across various assets like stocks, bonds, real estate, and other financial instruments. The goal is to reduce risk by not putting all your eggs in one basket. When you diversify, you balance out potential losses in one area with gains in another, which helps protect your overall portfolio from market volatility.

By diversifying your investments, you can achieve a more stable and reliable return over time. Different assets react differently to economic events; for example, while stocks might be down, bonds could be performing well. This balance helps ensure that your portfolio isn't overly impacted by any single downturn. Diversification is a smart way to build long-term wealth while minimizing risk, making it an essential strategy for any savvy investor. Learn more here.

MILAN’S HACK OF THE DAY

Invest in ETFs for Long-term Growth

Today, let's dive into a smart money hack for long-term growth: investing in low-cost index funds or ETFs. Index funds and ETFs (exchange-traded funds) are types of investments that track the performance of a specific market index, like the S&P 500. Because they simply mirror the index, they have lower management fees compared to actively managed funds. This cost efficiency means more of your money stays invested and can grow over time.

Investing in these low-cost options is a great way to diversify your portfolio without needing to pick individual stocks. They offer broad market exposure, reducing the risk of putting all your money into a single investment. Over the long term, index funds and ETFs have shown to provide solid returns, making them an excellent choice for building wealth steadily. By choosing these low-cost, diversified investments, you can set yourself up for financial success with minimal hassle. Looking for a broker to begin investing? Here are our top picks.

OUR FAVORITE TOOLS

Increasing Your Passive Income

Passive income is such an important part of building your wealth and it doesn’t have to be as complicated as some people make it. Here are some passive income streams that you can try today.

1. A high yield savings account will give you more interest than a normal savings account at a traditional bank. Use this account to store your emergency fund and watch your money multiply. 
2. Open an investing account with E-trade, Fidelity, or Vanguard. Use this account to start buying into the S&P500 through VOO or SPY. 
3. If you want to get ahead of your money but don’t know where to start, we got you.

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