Why I’m Putting $1,000 in Index Funds in May 2025

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When I got the official job offer from Motley Fool Money a few months ago, I learned about a sweet little perk for new employees: a $1,000 bonus to invest however I want!Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. At first, I joked with my wife that we could drive to Vegas and bet it all on black. We could be there before lunch, celebrate with a buffet dinner, and maybe even double our money in one spin!But then I remembered that I am a boring, responsible adult with two small kids at home. I also write about money for a living, so I know exactly where to put my $1,000 bonus. The same reliable, wealth-building investment that’s been working for me for years: index funds.Why index funds still excite me (even if they’re “boring”)The main reason I love index funds is I don’t have to do anything!I make one single trade, and boom — all my money instantly gets split across hundreds of different companies. For example, if I buy an S&P 500 index fund, it’s like owning tiny pieces of 500 of the biggest companies in America.There’s no individual stock-picking. No second guessing. No babysitting my portfolio every week. I just go on living my life while the market (and compound growth) does all the heavy lifting for me.Another thing that fires me up? With a super broad index fund, I basically own a piece of all the big publicly traded companies in the U.S. When a buddy brags about owning Tesla stock? I’m like, “Me too!”Apple, Amazon, Google, or whatever the hot stock of the month is? “Same.”Owning an index fund means I don’t have to pick winners. I own the whole field.The market is “on sale” right nowThe stock market has been rocky this year, and nobody loves opening their investment app and seeing red numbers. But you know what? Times like this are incredible buying opportunities.My idol Warren Buffet (congrats on your retirement, BTW!) once said something that’s burned in my memory: “Be fearful when others are greedy, and be greedy when others are fearful.”I think it’s fair to say that there’s a healthy amount of fear floating around in 2025. That makes me even more excited to invest right now.Sure, the market might tank tomorrow. Or next month. Or a year from now. But I’m not going to sit around and try to time the bottom (nobody can). I want every available dollar invested and working for me for as long as possible, including this new $1,000 bonus.Looking for an advisor? You can use this free tool from our partner SmartAsset that can match you with up to three fiduciary advisors.What my $1,000 could grow intoI’m a long-term investor. The money I put away today won’t be touched for decades.Here’s what my $1,000 could turn into at an 8% average annual return:Invest PeriodFuture Value10 years$2,15920 years$4,66030 years$10,06240 years$21,724Data source: Author’s calculations.One simple investment today, left for decades, could be worth over 20 times as much.Vegas can wait. I like these odds better.How I choose which index funds to buyWhen picking index funds, I stick to three simple rules:Super broad: I want funds that cover large swaths of the market.Low fees: I always look for funds with expense ratios under 0.10%. Lower fees mean more money in my pocket.Consistency: Once I pick, I stay the course. I don’t jump ship because of scary headlines or short-term losses.One of my favorite index funds is a total stock market index fund (like Vanguard’s VTSAX or Fidelity’s FZROX), which basically covers every publicly traded stock in the U.S.But that’s just me — everyone should pick funds based on their own goals and risk tolerance.Also important to me is using a broker that offers free trades and no monthly fees.Want to compare your options? Check out our list of best online stock brokers today and find one that fits your investing style.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Joel O’Leary has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Tesla. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

When I got the official job offer from Motley Fool Money a few months ago, I learned about a sweet little perk for new employees: a $1,000 bonus to invest however I want!

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

At first, I joked with my wife that we could drive to Vegas and bet it all on black. We could be there before lunch, celebrate with a buffet dinner, and maybe even double our money in one spin!

But then I remembered that I am a boring, responsible adult with two small kids at home. I also write about money for a living, so I know exactly where to put my $1,000 bonus. The same reliable, wealth-building investment that’s been working for me for years: index funds.

Why index funds still excite me (even if they’re “boring”)

The main reason I love index funds is I don’t have to do anything!

I make one single trade, and boom — all my money instantly gets split across hundreds of different companies. For example, if I buy an S&P 500 index fund, it’s like owning tiny pieces of 500 of the biggest companies in America.

There’s no individual stock-picking. No second guessing. No babysitting my portfolio every week. I just go on living my life while the market (and compound growth) does all the heavy lifting for me.

Another thing that fires me up? With a super broad index fund, I basically own a piece of all the big publicly traded companies in the U.S. When a buddy brags about owning Tesla stock? I’m like, “Me too!”

Apple, Amazon, Google, or whatever the hot stock of the month is? “Same.”

Owning an index fund means I don’t have to pick winners. I own the whole field.

The market is “on sale” right now

The stock market has been rocky this year, and nobody loves opening their investment app and seeing red numbers. But you know what? Times like this are incredible buying opportunities.

My idol Warren Buffet (congrats on your retirement, BTW!) once said something that’s burned in my memory: “Be fearful when others are greedy, and be greedy when others are fearful.”

I think it’s fair to say that there’s a healthy amount of fear floating around in 2025. That makes me even more excited to invest right now.

Sure, the market might tank tomorrow. Or next month. Or a year from now. But I’m not going to sit around and try to time the bottom (nobody can). I want every available dollar invested and working for me for as long as possible, including this new $1,000 bonus.

Looking for an advisor? You can use this free tool from our partner SmartAsset that can match you with up to three fiduciary advisors.

What my $1,000 could grow into

I’m a long-term investor. The money I put away today won’t be touched for decades.

Here’s what my $1,000 could turn into at an 8% average annual return:

One simple investment today, left for decades, could be worth over 20 times as much.

Vegas can wait. I like these odds better.

How I choose which index funds to buy

When picking index funds, I stick to three simple rules:

1. Super broad: I want funds that cover large swaths of the market.
2. Low fees: I always look for funds with expense ratios under 0.10%. Lower fees mean more money in my pocket.
3. Consistency: Once I pick, I stay the course. I don’t jump ship because of scary headlines or short-term losses.

One of my favorite index funds is a total stock market index fund (like Vanguard’s VTSAX or Fidelity’s FZROX), which basically covers every publicly traded stock in the U.S.

But that’s just me — everyone should pick funds based on their own goals and risk tolerance.

Also important to me is using a broker that offers free trades and no monthly fees.

Want to compare your options? Check out our list of best online stock brokers today and find one that fits your investing style.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Joel O’Leary has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Tesla. The Motley Fool has a disclosure policy.

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