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What are people’s thoughts on the crypto.com app and their currency CRO? The debit cards they released come with honestly some great benefits (free Spotify/netflix subscription, 10%+ on staking, free airport lounge access) as long as you’re willing to stake a certain amount for 180 days.
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What are people’s thoughts on the crypto.com app and their currency CRO? The debit cards they released come with honestly some great benefits (free Spotify/netflix subscription, 10%+ on staking, free airport lounge access) as long as you’re willing to stake a certain amount for 180 days.
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Index funds match an index.
Mutual funds can be an index fund, price set 1x/day
ETFs can be an index fund, price set throughout the day
Indexes reduce risk of individual stocks by fitting a specific strategy, like full market, large cap, small cap, international, tech, bonds, etc.
Chief
An index fund is a kind of mutual fund, and the opposite is an actively managed fund. There are also other types like target date funds and perhaps others I’m forgetting at the moment but I think this will get you what you’re looking for.
Index funds are designed to mimic some other thing, like the S&P 500 or the whole stock market or bonds. They are popular because they typically have lower expense ratios and easily give you exposure to all the major asset classes without the risk from picking individual stocks.
Actively managed mutual funds are similar except that instead of passively tracking an index, they have teams of experts who do research on what and when to buy, sell, or hold. They are less popular now because those people are expensive and you pay for it with higher fees, and mainly because their returns are lower than just investing in indexes.
Chief
True, thanks for adding that
Wow. Really appreciate the thoughtful responses. Appreciate it!
I have about 50k in mutual funds but meant to buy index funds (saw it also happened to someone on here lol). Does it matter if I now start investing in index funds? I'm wondering if that will affect me negatively (read about 3 fund portfolio on here) because I would definitely have 10 funds (some mutual, some future index funds) at that point.
Chief
Please consider your own goals and priorities and don’t consider this financial advice. If you had unrealized gains in those other investments, then yes you would owe capital gains tax if you sold them.
When I was faced with a similar situation, I decided it was far better in the long run to pay a small amount of tax in year three, than to pay a much higher fee for twenty years. I judged that I was invested in something that I did not want to own long term, so the short-term financial impact was far exceeded by getting aligned with my goals.
In your case, we can’t say without knowing more about those other investments (what they are and if they’re short-term or long-term), your time horizon, your tax rates, and so on. But you probably could model it out by making some assumptions and see which approach works out best for you.