With a mere 0.2% annual fee and almost no turnover, the Invesco S&P 500 Equal Weight ETF has a good combination of low fees and low churn that give index funds their edge. All in all, there are lots of reasons to believe that ETF has what it takes to be worth owning as a reasonable first investment in any investor’s long-term portfolio.
Why all at once?
While $5,000 is a great start on investing, a single $5,000 investment will not likely be enough to get you to and through a comfortable retirement all by itself. As a jump-start, first investment it’s a fabulous foundation, but building your more financially secure future will be more of a marathon than a sprint.
As a result, regardless of whether the market moves up or down in the short term, your plan should be to add money on top of that initial $5,000 as you can. In all probability, sometimes, you’ll buy in at a higher valuation, and sometimes you’ll buy in at a lower one. Over time, though, treating that $5,000 as a first step on a long journey will be a better idea than worrying about getting in at the perfect price point today.
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Indeed, time is the most valuable tool you have when it comes to building wealth. The sooner you get yourself on a trajectory where you’re regularly investing, the better off you’ll likely be. So if you’ve got $5,000 to put to work for you, use it to set up your financial foundation and inspire you to stay on course for your longer term future. When you look back at how far you’ve come after keeping at it over the course of your career, you’ll be really glad you did.