Can You Retire a Millionaire With Index Funds?

Buying stocks and building a portfolio of top-quality companies can be a great way to build wealth over time, but it isn't the only way to go. Quite frankly, buying individual stocks isn't right for everyone. Many people simply don't want to have to do investment research or depend on any one company for their investment performance.

And even if you do invest in individual stocks (which we're obviously big fans of doing), that doesn't mean that you should only buy individual stocks. Even for the most committed stock investors, index funds can be a great way to create a nice "base" to your portfolio.

If you aren't familiar, an index fund is a type of investment that pools investors' money to attempt to match the performance of a certain stock index. For example, an S&P 500 index fund would invest in the 500 stocks that make up that index, with the goal of matching the S&P 500's performance over time.

Source Fool.com