UNCOMMON CENTS 43

A RESPECTED FINANCIAL PLANNER SAID THAT "MORE THAN TWO THIRDS OF THE TIME, NO-BRAINER INDEX FUNDS BEAT FUNDS RUN BY STOCK PICKERS." WHAT MAGNIFIES THE SHOCK WAVE OF THIS STATEMENT IS THAT IT WAS MADE BY A CONTRIBUTOR TO THE AARP, THE AMERICAN ASSOCIATION OF RETIRED PERSONS, A LIBERAL MAGAZINE HELL BENT UPON THE GOVERNMENT CARING FOR YOU FROM CRADLE TO GRAVE. THIS INFORMATION ABOUT SIMPLE INVESTING SHOULD INSPIRE YOUNG AND OLD ALIKE. IT'S A 'NO-BRAINER' TO TAKE YOUR FIRST FINANCIAL STEP. IF YOU THINK SAVING IS TOO DIFFICULT CONFRONTED WITH MALLS, REMEMBER THAT SAVING IS EASY IF NOT CONFRONTED WITH SHOPPING AND MALLS. RESIST.

WHEN LOOKING AT SPANS OF A DECADE OR MORE FOR INVESTMENT, STOCKS TEND TO GAIN IN VALUE. THE S & P 500 INDEX ,COMPOSED OF A BROAD RANGE OF LARGE COMPANY STOCKS, FOR EXAMPLE, RETURNED AN AVERAGE OF ABOUT 10 PERCENT A YEAR OVER TIME. INDEX FUNDS REFLECT THIS MARKET ACTION. YOUR FIRST $3000. READY AND WAITING, SHOULD BE INVESTED IN AN INDEX FUND. VANGUARD, FIDELITY, CHARLES SCHWAB OR AARP FINANCIAL MUTUAL FUND OFFER THEM. THE WILSHIRE 5000 INDEX INCLUDES ALMOST ALL U.S. STOCKS TRADED ON MAJOR EXCHANGES. A LARGE CAPITALIZATION FUND IS THE STANDARD AND POOR'S 500 STOCK INDEX. THE RUSSELL 2000 INDEX SELECTS SMALLER COMPANIES. ANOTHER FUND REPRESENTS INDEXES OF DEVELOPING MARKETS OVERSEAS. A BOND INDEX IS BASED ON THE TOTAL BOND MARKET. OVER THE INTERNET IT IS POSSIBLE TO START SOMEWHERE WITH AN INDEX FUND. OVER TIME YOU MAY END UP WITH A PORTFOLIO INCLUDING DIFFERENT TYPES OF FUNDS, EACH REPRESENTING A DIFFERENT INDEX, WITH PERCENTAGES OF INVESTMENTS ALLOTTED TO EACH. BUT WITHOUT TAKING THE FIRST STEP, SAVING, YOU CANNOT TAKE THE SECOND STEP, INVESTING.

HINT: LUCK HAS LITTLE TO DO WITH SUCCESS. AS A PHILOSOPHER SAID, "WHO DOES NOT BEFRIEND HIMSELF BY DOING GOOD?" TO HAVE A FRIEND IS TO BE A GOOD ONE. PAY YOURSELF FIRST AND FEEL GOOD ABOUT YOURSELF AT THE SAME TIME.