A stock is a fractional ownership share in a publicly traded company. Stockholders benefit when the business grows (price appreciation) and, for many companies, receive a portion of profits as dividends.
Over the past 95 years, US stocks have delivered roughly 10% nominal / 7% real annualized returns — the most reliable way to grow purchasing power faster than inflation. Even a conservative retiree typically needs meaningful stock exposure to avoid running out of money over a 25–30 year retirement.
A bond is a loan you make to a government or corporation. In exchange, the issuer pays you periodic interest (coupon) and returns your princ…
An ETF is a basket of securities (stocks, bonds, or both) that trades on an exchange like a single stock. Most ETFs passively track an index…
An index fund is a mutual fund or ETF that tries to match — not beat — a market index like the S&P 500 or Total US Stock Market. No active m…
Dividend investing focuses on stocks that pay regular cash distributions to shareholders. "Dividend aristocrats" are S&P 500 companies that …