Index funds for low income

[Anonymous No.897106]

I like the idea of the $100 index fund, but there are some things I'm afraid of;
- If I miss a payment/instalment of $100 per month, my account can be closed and liquidated; what does that mean? Will I get my money back, minus the gains?
- What kind of returns can I expect?
- Do I get to choose what my money does, or is in the hands of the investment manager?
- can I loose my money (the initial and the installments)?

I am new to investing and afraid.

[Anonymous No.897114]

>>897106
>I like the idea of the $100 index fund, but there are some things I'm afraid of;
>- If I miss a payment/instalment of $100 per month, my account can be closed and liquidated; what does that mean? Will I get my money back, minus the gains?
Literally no idea what the fuck kind of account you're talking about. Post a link or something.
>- What kind of returns can I expect?
8-10% annually averaged over a long period of time (10-20 years). Individual years will vary widely, and will include both positive and negative years.
>- Do I get to choose what my money does, or is in the hands of the investment manager?
You pick the index, and the manager invests in that index. The index defines what the manager buys. The manager does not deviate from the index in any material respects.

If you don't know what an index is, keep studying.
>- can I loose my money (the initial and the installments)?
Yes. All investments have risk. Index funds are investment. Therefore index funds have risk.

It's highly unlikely that any major index would ever go to zero, and if it did we'd be in apocalyptic times so your retirement account would be far less important than your zombie killing skills, but yes your account can theoretically lose value even in the long run.

[Anonymous No.897243]

>>897114
The account would be through Charles Schwartz. The $100 minimum deposit index fund. Seems that if you get in, you must then put in $100 each and every month, and if you don't your account is liquidated - this was in the words of one of those online chat things with a rep. I'm not totally sure how extreme that is as a loss for me.

I'm trying to put in a link, but it's no good.

I have $1,650 and I'd like to see some kind of +1% return on it.

[iHaz !MILLiOnz/Q No.897376]

>>897243
With minimums that low, it sounds like some kind of direct deposit plan. Investment companies make these available to attract new, young investors just starting out. The key is that they require you to make regular (monthly) deposits, otherwise you're not worth their time.

Do you have a job? If no, then stop reading right now, go away, and come back when you have a steady income.

If yes, then can consider investing AFTER you set aside an emergency fund of 3-6 months living expenses in cash in a separate bank account.

If you miss a deposit (more likely 2 or 3) they will sell your fund holdings and mail you a check. They don't keep your money; they're not thieves.

[Anonymous No.897531]

>>897243
>you must then put in $100 each and every month, and if you don't your account is liquidated
>one of those online chat things
This is either a troll or you are an idiot for even considering this.

[iHaz !MILLiOnz/Q No.897571]

>>897531
>This is either a troll or you are an idiot for even considering this.
Why? Its exactly the same as falling below the minimum balance requirement on your brokerage or fund account. I don't know a single investment institution that doesn't follow these exact same procedures.

[Anonymous No.897595]

You don't have to put money in every month. You just can't sell without incurring a big fee until 6 months of ownership.

At least that's what I understand. I buy about $100 of SWHFX a month