How to become a millionaire, Part 4

By ANDREW HALLAM

Welcome to the fourth video in this series for new investors.

Plenty of people know they should invest in low-cost index funds instead of actively managed products. But what exactly is an index fund? In this video, I explain how index funds came about, how they work and why they’re such a good idea.

New investors who missed the first three video in the series can catch up with them here:

How to become a millionaire, Part 1

How to become a millionaire, Part 2

How to become a millionaire, Part 3

You might also want to look at our series Back to Basics:

Part 1: Starting with evidence

Part 2: Growing your wealth

Part 3: Protecting your wealth

Part 4: Choosing a strategy

Part 5: Maintaining discipline

ANDREW HALLAM is the author of the bestseller, Millionaire Teacher and Millionaire Expat: How To Build Wealth Living Overseas.

Here are some recent articles of Andrew’s we’ve published on TEBI that you may be interested in:

Are rich people as happy as they think?

How would you really want to spend your money?

Plenty of people would fire this amazing money manager

Don’t leave your best investor on the subs’ bench

Why new investors have irrational fears