Index funds track broad market benchmarks such as the S&P 500 or total bond market. Because they simply mirror the index, they keep costs low and remove manager risk.

Research shows most active funds struggle to beat their benchmarks after fees. Index funds give you market returns at minimal cost, leaving more of your money invested and compounding.

Build a core portfolio with a handful of broad index funds covering domestic stocks, international stocks, and bonds. Rebalance periodically to maintain your preferred mix.