Buy an S%26P 500 index fund. Adding funds to your Roth IRA is great, but you also need to invest them or they won't grow. The easiest way to invest is in the S%26P 500, which basically consists of owning 500 of the largest successful public companies in the U.S. UU.
You can't invest directly in an index because it's simply a measure of the performance of its constituent securities. What you can do is invest in an index through ETFs and index funds that try to replicate the performance of specific indices. If you want to invest in the S%26P 500, you'll first need a brokerage account. It could be a retirement account, such as a traditional IRA or a Roth IRA, an employer-sponsored 401 (k) or similar, or your own traditional taxable brokerage account.
You can buy individual company shares in the S%26P 500 or buy an S%26P 500 index fund or ETF. Sometimes a simple, straightforward approach is best. Index funds offer the benefit of diversification and tend to be profitable and tax-efficient. Investing in index mutual funds and index ETFs allows you to own several companies without having to regularly choose which ones to buy or sell, and offers the following benefits.
