Welcome to the forum 
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I also suggest you start a new thread in the Personal Investments forum and post your portfolio information in that thread using the Asking Portfolio Questions format.)
Oldknight123 wrote: ↑Wed Jan 24, 2024 5:05 pmI am a complete newbie to investing and have been reading about S&P 500 index funds as good for beginners. But recent S&P highs makes me rethink if it’s a good time to invest or wait for it to fall before making the 1st investment. I have about $10,000 to start and would appreciate any suggestions on how to start.
In my opinion almost any investing question using the word "time" is probably the wrong question.
In there a retirement plan offered at work (like a 401k, 403b, 457b, SEP, SIMPLE IRA, TSP, etc)? If so is there an employer match available? What funds are offered in the plan at work? Do you have debt? If so what types, amounts and interest rates?
Wiki article, Prioritizing investments.
In general now is a good time, earlier would probably have been better time, and later is probably not a good time. The stock market hits an all-time high very frequently, it's not possible to predict if it will go higher still in the near future. In general it's best to invest as soon as you are able to invest in order to get the benefits of compounding.
My advice is to invest wherever you have additional money available for investing.
Wiki article, Bogleheads® investment philosophy, Invest early and often.
FAQs
S&P 500 Index
The market is surging, but is now really the best time to buy? The S&P 500 (^GSPC 0.25%) has been booming over the past year and a half, currently up by nearly 50% from its low in late 2022. The index has also reached two dozen all-time highs throughout 2024, its most recent in late May.
Is S&P 500 a good investment for beginners? ›
Investing in the S&P 500
You can't directly invest in the index itself, but you can buy individual stocks of S&P 500 companies, or buy a S&P 500 index fund through a mutual fund or ETF. The latter is ideal for beginner investors since they provide broad market exposure and diversification at a low cost.
Should I just put my money in S&P 500? ›
Investing in an S&P 500 fund can instantly diversify your portfolio and is generally considered less risky. S&P 500 index funds or ETFs will track the performance of the S&P 500, which means when the S&P 500 does well, your investment will, too. (The opposite is also true, of course.)
What if I invested $1,000 in the S&P 500 10 years ago? ›
Over the past decade, you would have done even better, as the S&P 500 posted an average annual return of a whopping 12.68%. Here's how much your account balance would be now if you were invested over the past 10 years: $1,000 would grow to $3,300. $5,000 would grow to $16,498.
Is it a good time to invest in index funds? ›
Any time is good for investing in index funds when you plan to hold the fund for the long term.
What happens if you invest $100 000 in the S&P 500? ›
If you take your $100,000 and put it in an S&P 500 index fund, you could end up with over $1 million within 24 years if the index produces returns in line with its historical average. If you keep saving, you can get there even faster.
Is the S&P 500 a good investment for 2024? ›
The S&P 500 generated an impressive 26.29% total return in 2023, rebounding from an 18.11% setback in 2022. Heading into 2024, investors are optimistic the same macroeconomic tailwinds that fueled the stock market's 2023 rally will propel the S&P 500 to new all-time highs in 2024.
What is the best S&P 500 index fund? ›
Best S&P 500 index funds
- Fidelity 500 Index Fund (FXAIX).
- Vanguard 500 Index Fund Admiral Shares (VFIAX).
- Schwab S&P 500 Index Fund (SWPPX).
- State Street S&P 500 Index Fund Class N (SVSPX).
Assuming an average annual return rate of about 10% (a typical historical average), a $10,000 investment in the S&P 500 could potentially grow to approximately $25,937 over 10 years.
Should I put all my 401k in S&P 500? ›
Investing in a broad market index fund can take a lot of the guesswork away. If you're not a confident investor, an S&P 500 index fund could be your best choice. If you're willing to do the work and research stocks individually, you might enjoy stronger gains in your retirement account.
The S&P 500 carries market risk, as its value fluctuates with overall market performance, as well as the performance of heavily weighted stocks and sectors. For example, the technology sector performed poorly in 2022 and was a large contributor to the index's correction that year.
How much is $1000 a month for 5 years? ›
In fact, at the end of the five years, if you invest $1,000 per month you would have $83,156.62 in your investment account, according to the SIP calculator (assuming a yearly rate of return of 11.97% and quarterly compounding).
How much will I have if I invest $500 a month for 10 years? ›
What happens when you invest $500 a month
| Rate of return | 10 years | 30 years |
|---|
| 4% | $72,000 | $336,500 |
| 6% | $79,000 | $474,300 |
| 8% | $86,900 | $679,700 |
| 10% | $95,600 | $987,000 |
Nov 15, 2023
Average returns
| Period | Average annualised return | Total return |
|---|
| Last year | 26.2% | 26.2% |
| Last 5 years | 16.4% | 114.0% |
| Last 10 years | 15.3% | 314.1% |
| Last 20 years | 10.8% | 684.6% |
Disadvantages of Index Investing
- Lack of downside protection: There is no floor to losses.
- No choice in the index fund's composition: Cannot add or remove any holdings.
- Can't beat the market: Can only achieve market returns (generally)
How to invest in an S&P 500 index fund
- Find your S&P 500 index fund. It's actually easy to find an S&P 500 index fund, even if you're just starting to invest. ...
- Go to your investing account or open a new one. ...
- Determine how much you can afford to invest. ...
- Buy the index fund.
There are exceptions, but generally speaking, as the U.S. economy goes, so does the S&P 500. That's what makes an S&P 500 fund ideal for beginning investors; you don't have to think too much, just trust in the long-term growth of the U.S. economy.
How much will S&P be worth in 10 years? ›
Stock market forecast for the next decade
| Year | Price |
|---|
| 2027 | 6200 |
| 2028 | 6725 |
| 2029 | 7300 |
| 2030 | 8900 |
5 more rowsJun 13, 2024
7 Proven Ways to Double $10k Quickly
- Retail Arbitrage.
- Invest in Stocks & ETFs.
- Start an AirBnb.
- Invest in Real Estate.
- Peer to Peer Lending.
- Cryptocurrency.
- Resell Products on Amazon FBA.
You should bank on the S&P500. In the past century, there were only 3 cases where the S&P500 took longer than 5 years to recover.
S&P 500 forecast
But the S&P 500's forward 12-month P/E ratio is 20.3. Its 10-year average forward P/E of 17.8 suggests stock valuations may be stretched. Most analysts remain optimistic that the S&P 500 will continue advancing. The average analyst price target for the S&P 500 is 5,925.80.
Is now a good time to invest in the stock market? ›
Based on the stock market's historic performance, there's never necessarily a bad time to buy -- as long as you keep a long-term outlook. The market can be volatile in the short term (even in strong economic times), but it has a perfect track record of seeing positive returns over many years.
What is the best time of day to buy S&P 500? ›
The opening period (9:30 a.m. to 10:30 a.m. Eastern Time) is often one of the best hours of the day for day trading, offering the biggest moves in the shortest amount of time. A lot of professional day traders stop trading around 11:30 a.m. because that is when volatility and volume tend to taper off.
What is Warren Buffett buying? ›
Warren Buffett buys Occidental shares for 9 straight days, pushes his stake to nearly 29% Warren Buffett walks the floor and meets with Berkshire Hathaway shareholders ahead of their annual meeting in Omaha, Nebraska, on May 3, 2024.
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