Background: I’m not super financially literate, just what Google and Reddit have taught me. I make sure my bills are paid every month, my monthly income exceeds my monthly expenses. I pay off debt as early as I can for peace of mind even though I’ve been told that investing is better long term than paying off debts early. I’m investing 10% of my salary into my 403b through work, I have a pension from a previous job that I plan to roll into a traditional IRA when I have the time. I don’t have a roth IRA.
I plan to meet with a financial advisor with my primary goal of learning how to generate stable passive income. A high yield savings account or money market account seems like the most readily accessible choice for withdrawals. However, the interest rates I’ve seen make it seem like it would take a very long time for the interest generated to make a significant impact on my life, at least if my math is correct.
Then I learned about an s&p 500 index and Google says on average there’s a 10% annual return on investment, which seems almost too good to be true. If it is true, then it seems like something viable for extra income when I need it.
Has anyone used an S&P 500 index this way?
