No Brainer Stock Portfolio - Own the S&P 500

What's the quickest and safest way to invest in the stock market for the long term? The answer is very simple - buy and hold the S&P 500. What is the S&P 500 and why should you own it? The S&P 500 is short for the Standard and Poors index that includes the 500 largest publicly owned companies in the United States. As an owner of the S&P 500, you own a little piece of the largest corporations in America and you are betting on the long-term economy of the U.S.

How do you buy the S&P 500? It's very simple - you are just a telephone call or a few mouse clicks from owning the S&P 500. Call any major brokerage firm or select an online broker and set up an account. Then buy a low-fee index fund that tracks the S&P 500 or buy the SPY, the Exchange Traded Fund that tracks the S&P 500.

When you set up your account, elect to reinvest all dividends and capital gains. A dividend is a cash payment made to a shareholder. You can take the dividend as cash or you can buy additional shares with the money. A capital gain occurs when a share of a stock is sold at a profit. Always reinvest your dividends and capital gains. It's a simple way to increase the number of shares you own without paying out any new money from your pocket book.