I'm Nicole Lapin, the only financial expert you don't need a dictionary to understand.

It's time for some money rehab.

If you've been listening to money rehab for a while, then you know I am all about index

funds and chilling, or passive investing, and not basing your investing strategy around

picking one all-star stock.

And I'm not the only one who advocates for this investing lifestyle, a Warren Buffett,

one of the most successful investors of all time loves this plan too.

Actually, in his will Warren Buffett doesn't recommend that his own family pick stocks,

or even that they stay invested in his company Berkshire Hathaway.

Rather, he recommends they follow a 90-10 split, with 10% of the money in short term bonds

and the rest in low cost S&P 500 index funds.

Now, before we get into it, let's get one thing out of the way.

The grammar of it all.

I looked it up, and the Nasdaq Stock Market website says that indexes or indices are acceptable,

but saying indexes is preferred as the plural of index.

If you can't trust the Nasdaq for grammar advice, who can you trust?

Okay, fine.

I also looked it up in the Chicago Manual of Style, and they use indexes as well.

I'm a nerd.

I know.

So let's go with indexes here.

Before we get there, let's talk a little bit about indexes themselves.

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