Moneymentals | Our Blog


How Do I Buy an Index Fund?

There’s a difference between wanting to do something and actually doing it. Procrastination is common when the road ahead is murky and unknown—but then you miss the ultimate victory: the “I did it!” So if your goal is to invest in index funds, don’t let anything stop you. Read on!

Designed to follow a market index such as the Standard & Poor’s 500 Index (S&P 500), index funds mirror a market benchmark. My blog Easy Investing 101: What is Indexing? talks about index funds and the advantages of buying them. Today’s blog tells you how to begin investing.

Step 1: Decide between Index Mutual Funds and ETFs

Index funds come in two flavors: index mutual funds and Exchange Traded Funds (ETFs). The traditional form of indexing uses mutual funds. ETFs, which are mutual funds that trade like stocks, have only become popular within the last decade or so.

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Can I Borrow from My Retirement Plan to Buy a House?

Sometimes people do things just because they can. Ever see someone sky diving, hang gliding or bungee jumping? What about climbing Mount Everest or trying to leap several vehicles on a motorcycle? I won’t go so far as to say it’s a dangerous stunt to borrow from a retirement plan to buy a house—though it can be done in some cases. Like sky diving, it’s not always the wisest venture. Let’s see why.

Option of Borrowing

Whether or not you can borrow from your retirement plan to purchase a home depends on your plan and your employer.

Borrowing from 401(k) or 403(b) Plans

Most often, 401(k) retirement plans are offered by private employers and 403(b) retirement plans are offered by non-profits. If you have a 401(k) or 403(b), IRS regulations permit you to borrow for a home as well as other purchases. However, the option for borrowing is established when the particular plan is set up. Many employers’ plans do allow for borrowing.

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Blogger Interview: Money Under 30's David Weliver

Money Under 30 is a personal finance community providing 'simple, honest financial advice for starting out', mainly for users in their 20s and 30s. Founding Editor David Weliver lives in Portland, Maine with his wife and daughter (Wealth Gathering is also based in Maine - we're practically neighbors!). You can subscribe to the Money Under 30 blog, like it on Facebook, or follow on Twitter.   

Who are the people most supportive of your life goals? How are they helping?
My wife, Lauren, is my number one supporter. She encouraged me to pursue MoneyUnder30.com full-time even when I’m sure it would’ve been easier for her to suggest that I stick it out with a steady paycheck.

She’s envious that I get to set my own schedule and work from a home office – sometimes in sweatpants, it’s true – and she gives me some grief about that. But at the end of the day she’s happy for me to be growing a business and doing what I love, for which I’m super grateful.

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