index funds

Everywhere you look, new exchange-traded funds are popping up, and many people now think they're a must-have for a successful portfolio. But even though investors have poured more than $1 trillion into ETFs, the question remains: Do you really need them?

Pop quiz: If someone wanted to charge you $600 for something you could get for $10 elsewhere, who would you buy it from? Sounds like a no-brainer. But when people buy mutual funds, they often end up paying the $600 price instead of the $10 one.

From my point of view, we are about to be in heaps of trouble economically, so for 2012, I'm looking to exploit other people's woes like the good capitalist I am. Here are three bets I might pull the trigger on:

A retiree named Bob is confronting a dilemma many of his peers face: His nest egg is parked in safe cash investments, like certificates of deposit, and earning barely any interest. What can he do to get a better return? Laura Rowley looks at an increasingly popular alternative.

On Sept. 11, 2001, Gail's husband went to work at the World Trade Center. He never came home again. During the blur of grief, the stay-at-home mom realized she was now her family's CFO. Today, she's a bona fide investor, but getting to that point meant traveling a long, challenging road.

"Those who cannot remember the past are condemned to repeat it." Motley Fool analyst Matt Koppenheffer decided to twist that nugget of wisdom a bit and look at what did work in past and figure out how we can repeat it. Doing so, he found five dividend payers that fit the bill today.

By now, most small investors know that investing in index funds is frequently superior to owning individual stocks or actively managed mutual funds. It turns out, however, there are several ways to squeeze even better returns out of your capital using unusually constructed index funds.

The average American household suffered a huge drop in wealth because of the financial crisis, according to a survey released by the Federal Reserve. How did this happen -- and more importantly, what can you do about it?

Last year, stocks rose as cost-cutting helped businesses set record profits. But its not too late to buy in, says venture capitalist Peter Cohan: With the corporate world's focus shifting to sales growth, and profits likely to beat expectations, stocks still look undervalued.

The securities industry spends hundreds of millions of dollars a year in advertising, but that doesn't mean you're getting the straight scoop. The financial media doesn't always help, either. So, as you contemplate investing for 2011, here are 10 facts you should know.