Involved in a finance conversation about saving for pensions, something I don’t have a clue about. Just smiling and nodding
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EFT stands for “Exchange Traded Fund.” SPY is a specific EFT that does its best to gain or lose money at the same rate as the S&P 500 Index – a measurement of whether the top 500 stocks in the US are going up or down in value.
A very simple strategy to save for retirement is to invest your retirement account in SPY. You buy and sell it just like you would shares of stock. When you put more money in the account, you buy more shares. When you need to take money out, you sell some shares. And that’s it. No thinking about what company’s stock to buy. No watching to see if the market is going up or down and taking different actions.
It’s generally a very successful strategy. If the market does well, you do, too. If the market loses money, so do you, but you’re very likely to get it back soon enough without having to do anything at all.
It’s very hard to make mistakes following such a simple strategy.
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