The Patient Investor

Starting out can make investing feel like a hunt for the perfect fund. A simpler goal is to build a portfolio that spreads your money across many investments, while keeping costs and your own timeline in view.

Start with broad exposure

An index fund aims to track a market index, giving you exposure to many investments in one fund. That can be a straightforward starting point, rather than trying to pick individual companies.

Read a beginner's guide to index funds →

Check the fee

Fund fees reduce the return you keep, so compare expense ratios when looking at similar funds. A lower fee does not guarantee better results, but it leaves less of your investment going toward costs.

Match the mix to your timeline

Stocks can rise and fall sharply. Bonds may behave differently, but they do not always protect a portfolio when stocks fall. Your mix should reflect when you expect to need the money and how much fluctuation you can live with.

Read about the changing role of the 60/40 portfolio →

Use the benefits already available

If you have a workplace retirement plan, check whether your employer matches contributions and what the plan's funds charge. A match can be valuable, and workplace plans may offer lower-cost fund choices than an IRA.

Learn more about workplace plans, matches and fees →

A useful first step this week: look up the fees and investment choices in your workplace plan, then decide whether your current mix fits your timeline.