I'll teach you how to KISS - Keep Investing Strategies Simple (Ft. Jared Fannin)

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A little bit about our Guest Writer

My name is Jared Fannin (Jrod Money) and I'm from Northwest Alabama. I'm 34 years old and married with 2 kids. I'm just a normal guy that works a 9-5 in the automotive industry as an analyst. I've always had a passion for helping people with personal finances and that's why I started my Twitter account. You can reach me by shooting me a DM @MoneyJrod.

Also, I wrote a free guide on How to get Started Investing in Index funds. You can grab a copy here.

Without further ado, let’s dive into it!

Not sure how to start investing?

Just KISS - Keep Investing Strategies Simple

Since I began posting content on Twitter 2 years ago, I've had several people ask me the same questions:

“Why do you always talk about keeping things simple with investing?”

“You know you can get better returns if you learn a little about trading, right?”

I started this journey on Twitter with the intention of being the account that I needed when I started my investing journey about 10 years ago. I made all of the mistakes you could make:

• Bought at the top with no plan

• Sold at a loss

• Tried to time IPOs

• Letting the market sway my decision-making

It was a difficult time for me as a new investor. Lucky for me, I had just started a brand new career and was investing in a retirement account in the background. But my stuff outside of retirement was going less than stellar.

You see, I had this idea that investing was complicated and that I needed to go the extra mile to be a successful investor. My idea of investing was buying individual stocks in a brokerage account. That's what they do in the movies, right?

I was watching investing and trading news on TV trying to get hints on the next big stock. I was reading a bunch of random Yahoo finance articles on all of the stocks that I did own. After buying a stock I would watch it religiously throughout the day and I would end up panic selling whenever it would take a minor hit. When it came to IPOs, I was trying to find that perfect stock that was poised to become the next Apple or Amazon. Needless to say, I was spinning my wheels and my investing plan was not working at all. This was a toxic way to invest.

Fast forward a few years, my wife and I had begun and finished our debt pay-off journey after financing a major home repair. Because we now had no debt in our life outside of our mortgage, our cash flow was the best it had ever been. I knew that I needed to get back to investing again but I didn't want to go down the same route as before. This is when I stumbled upon the book “Simple Path to Wealth'' by JL Collins. This book opened my eyes to the world of index funds and ETFs and changed my life.

An index fund such as $FXAIX (Fidelity 500 index fund) holds the companies that make up the S&P 500. Simply put, it contains the top 500 companies by market cap in the United States. If you are a believer in the US economy, then this is the fund for you. What makes this fund attractive is its low cost and simplicity. Buying the basket of stocks instead of individual companies like before, this was exactly the simplicity that I was looking for.

Top 10 Holding for FXAIX

The reason why I chose FXAIX instead of another S&P 500 fund was simple: My 401k is with Fidelity and my Roth IRA and brokerage accounts are with Fidelity as well and I wanted all of it under one roof. However, you can invest in the S&P through a variety of funds:

1. Vanguard S&P 500 ETF (VOO)

2. iShares Core S&P 500 ETF (IVV)

3. Schwab S&P 500 Index Fund (SWPPX)

And many others…

The point is to pick one that has low fees and is passively managed. Passively managed means that the fund manager doesn't make a ton of moves within the fund each year and therefore keeps the fees low, allowing you to keep more of your money. Passively managed funds have also historically outperformed actively managed funds, so keep that in mind when making your next decision.

I believe in simple investing because simple investing is sustainable investing. By consistently investing in FXAIX each month, especially in a market that is falling, I am buying cheaper shares and will have more once the market bounces back. In the meantime, I'm just living life. If you are willing to take the time to learn how to trade individual stocks, then go for it. But I'm convinced that the simple path to wealth through index funds is the best way to wealth for 95% of people.

Always remember KISS

“Keep Investing Strategies Simple”

Some resources to help you make more money:

• My Full Stock Portfolio - get access to all of my positions and get updates every time I buy or sell.

• Money Mastermind - the “Money Bible”. Myself and 29 other expert creators teamed up to create the most all-inclusive 280-page finance book on the market. Over 100 topics about money including real estate, crypto, budgeting, dividend stocks, online business, and more.

• The Complete Investors Accelerator Pack - everything you need to build a dividend portfolio that grows on itself. Learn more about dividend investing, how to analyze dividend stocks, what to do with your dividends and how to build a stream of passive income through the stock market.

• The Molina Letter - the only product that’s helped me grow my Twitter account to 30,000 followers. Fill in the blank templates you can copy to help you create viral content with minimal effort. A big following gives you the key to creating products and making money online. There’s a reason why 500 people are subscribed to this letter.

• TweetHunter - let the software do the tweeting for you. The only scheduler you’ll ever need. This tool makes me money in my sleep. Give it a try for free.

• Hipster Budget Guide - having trouble saving money? Learning how to budget is your solution. This book will show you ways to save money you never even thought of. Worth every penny.

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