Consider a savings account with an online bank, a money market account with a local bank, or a short-term bond fund via a brokerage company like Vanguard. This is because index funds track a stock market index and do not require the more expensive “active management” associated with other types of mutual funds and individual stocks. Since the fund essentially mirrors a section of the stock market, tracking its performance is much easier and less time consuming. Sure, the movements of the stock market are always going to fluctuate on the short-term, but know that the market tends to rise steadily over the years. In fact, since 1928, the U.S. stock market has averaged returns of 9.8 percent per year.

Source: Forbes January 28, 2024 22:07 UTC