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jrv, what index funds do you reccommend for me and when should I buy them?


Vanguard's index funds are the benchmark, and for good reason. The main index fund there everyone has heard of is VFINX, the S&P500 fund. VTSMX is a broader stock index fund (VFINX + small stocks, "total market"). VBINX is that plus bonds, i.e., everything (VBINX is probably too conservative for someone as young as you). There are lots of index funds, but I recommend comparing results and expenses against these Vanguard funds - if any fund under consideration does much worse that's a warning flag.

As for *when* to invest - I don't know how to time the markets. I'm not convinced anyone does. When I get paid anything I don't need before the next payday gets invested - I don't try to guess "when" and outsmart myself. There is usually a minimum for each investment made - I think Vanguard requires at least $250 every time you buy some shares.

I agree with NitneLiun's comments. The low cost of index funds is important, and the fact there aren't (shouldn't be) any loads or 12b-1 fees. They are also typically much more tax-efficient than active funds.

Of the actively-managed fund Dodge & Cox's DODGX stock fund has done well over time.
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