The Simplest Path to Wealth
Warren Buffett has won every bet he's made against active fund managers. His advice to the average person? Buy index funds. Jack Bogle created them, Buffett endorsed them, and decades of data confirm them. If you do nothing else with this article, open a brokerage account and buy VTI. Future you will be grateful.
What Are Index Funds?
Index funds track a market index (like the S&P 500) by holding all the stocks in that index. Instead of trying to pick winners, you own the entire market. This eliminates stock selection risk, reduces fees to near-zero, and historically outperforms 90% of professional fund managers over 15+ years.
How to Start in 3 Steps
Step 1: Open a brokerage account (Fidelity, Schwab, or Vanguard — all excellent, free to open).
Step 2: Set up automatic monthly contributions (even $100/month matters).
Step 3: Buy one of these: VTI (total US market), VOO (S&P 500), or VT (total world market).
The Big 3 Index Funds
VTI — Vanguard Total Stock Market: 4,000+ US stocks. The broadest US equity exposure. 0.03% expense ratio (that's $3/year on $10,000). This is THE default choice.
VOO — Vanguard S&P 500: The 500 largest US companies. Slightly more concentrated than VTI but practically identical returns. 0.03% expense ratio.
VXUS — Vanguard Total International: Everything outside the US. Add this for diversification (30% of portfolio is a common allocation).
The Power of Consistency
$500/month into VTI from age 25 to 65, assuming 10% average annual returns: $2.65 million. You invested $240K total. The other $2.4 million? Compound interest. That's not financial advice — that's math. Start today. Not tomorrow. Today.
