Money Minute: Stock market investments

If you’re looking to jump into the stock market, Wealth Manager Pete Eckerline advises that many people might want to start simple.

The S&P 500 is comprised of the 500 leading publicly traded companies in the United States, and Eckerline says it’s broad and easy to invest in.

Two ideas, he says, are buying the S&P 500 Index with an ETF, meaning an exchange-traded fund (SPY), or the equally weighted S&P 500.

“Just let the funds go, and it’s a good way to participate in the markets,” Eckerline says.

He also recommends using some of the low-cost fee companies to get started investing in the stock market. Places such as Charles Schwab, Fidelity, and Vanguard offer low and no-cost options, and don’t require a lot of account maintenance.

Historically, according to Motley Fool, the annual return over a 10-year period is over 11%, and including dividends, the index is above 13%.

To get the best return, you’ll want to keep your money put in the markets for a number of years.

“For someone to take a thousand dollars and put it into investments in the market, these are dollars that they are not going to need for at least three to five years, so you can go through a market cycle,” said Eckerline.