An index fund is a mutual fund that buys only the stocks in a particular index , unlike most funds, whose stocks are chosen by a highly-paid fund manager. Because you are not paying a manager, index funds are less expensive. In fact, index funds, on average, have actually out-performed other funds over the past twenty years. Insurance Bad luck can strike anyone. The cost of a wrecked car, stolen possessions, or medical treatment is often too much for anyone to bear alone.
Insurance comes in different varieties, depending on the type of peril it covers.
Everyone should have health insurance, which covers most types of medical treatment and care. Car owners need auto insurance, homeowners need home insurance, and anyone with children should have life insurance and disability insurance. The fee a lender charges in exchange for lending you money. Interest can also be paid to you, as in the case of bonds and certain bank accounts. Examples of investments include mutual funds , stocks , and bonds .