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The S&P 500 has historically returned approximately 10% annually before inflation (about 7% after inflation). Past performance does not guarantee future results.

Lump-sum investing statistically outperforms dollar-cost averaging about two-thirds of the time because markets tend to rise over time. However, regular monthly contributions reduce timing risk and build discipline.

Diversification spreads investments across different assets to reduce risk. A diversified portfolio typically includes domestic stocks, international stocks, bonds, and sometimes real estate — reducing the impact of any single investment performing poorly.

Expense ratios for index funds are typically 0.03-0.20%. Actively managed funds charge 0.5-1.5%. Even a 1% fee difference can cost hundreds of thousands over a 30-year investment horizon.

As soon as possible. A 25-year-old investing $300/month at 8% will accumulate roughly $1 million by 65. A 35-year-old doing the same has only about $440,000 — the 10-year head start is worth over $550,000.