Growing Wealth
◆ Track 03 · E-course

Investing.

Markets reward patience, not cleverness. Learn the few decisions that matter and ignore the noise that doesn't.

For: People who have a little saved and want it to start working.

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Course at a glance
  • Lessons4
  • Total time22 min
  • Quiz3 questions
  • Books3
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§ Overview

What you'll walk away with.

By the end of this course you'll have a brokerage account open, a recurring buy of a broad index fund, and a written policy you can re-read every time CNBC tries to scare you.

  1. 01Understand why low-cost index funds beat most active managers.
  2. 02Open and fund a brokerage and/or retirement account.
  3. 03Set asset allocation that matches your real time horizon.
  4. 04Build a written investment policy you can stick with for decades.
§ Lessons

The course.

  1. 01
    6 min

    Why index funds win

    Owning a slice of every public company beats picking next year's winner — and costs almost nothing.

    Key points
    • →Most active funds underperform their benchmark after fees.
    • →Costs compound the wrong way — 1% fee = ~25% less wealth over 40 years.
    • →Index = diversification + low cost + zero stock-picking decisions.
    Action

    Look up the expense ratio of any fund you already own. Anything > 0.20% deserves scrutiny.

  2. 02
    5 min

    Accounts before assets

    What account you buy in often matters more than what you buy. Tax-advantaged accounts compound faster.

    Key points
    • →401(k) match = instant 100% return on contribution.
    • →Roth IRA = tax-free growth, especially powerful when young.
    • →Taxable brokerage = flexibility but no tax shelter.
    Action

    Confirm you're capturing your full employer 401(k) match. If not, fix it this week.

  3. 03
    6 min

    Asset allocation, the only knob that matters

    Stocks vs bonds is the dial that drives 90% of your return and 100% of your sleep.

    Key points
    • →Higher stock allocation = higher expected return and higher volatility.
    • →A simple rule: stock % ≈ 110 − your age, adjusted to your stomach.
    • →Rebalance once a year — that's the entire job.
    Action

    Pick a stock/bond split you can hold through a 30% drop. Write it down.

  4. 04
    5 min

    The investment policy statement

    A one-page document that beats every market commentary you'll ever read.

    Key points
    • →State your goals, time horizon, allocation, and rebalancing rule.
    • →Commit to do nothing else without re-reading it for 30 days.
    • →Re-read it whenever you feel the urge to 'just check' your portfolio.
    Action

    Draft your one-page IPS today. Don't optimize — just write it.

§ Quiz

Check your work.

  1. 01

    Fund A charges 0.04% per year. Fund B charges 1.00% per year. Same underlying market. Over 40 years, roughly how much more wealth does Fund A produce?

  2. 02

    What's the single biggest argument for taking your employer's full 401(k) match?

  3. 03

    Markets drop 30%. You hold a written IPS. The correct first move is:

0 / 3 answered
§ Reading list

Books for this track.

01Must read

The Little Book of Common Sense Investing

by John C. Bogle

The clearest case for low-cost index funds, from the man who invented them.

02

The Bogleheads' Guide to Investing

by Larimore, Lindauer & LeBoeuf

The practical companion — how to actually build the portfolio Bogle described.

03

The Intelligent Investor

by Benjamin Graham

Buffett's bible. Teaches the temperament you need more than the technique.

§ Additional sources

Curated extras.

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