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Foundations · Index investing

Index Investing & DCA

Grow your money on autopilot: a diversified, low-cost portfolio, contributing a little and often.

The course for anyone with idle savings who wants to invest without it becoming a second job. You learn index investing —buying the whole market instead of trying to pick winners— and the DCA method, following Elena, a 42-year-old teacher with a conservative profile, from her $6,000 and $300 a month, with exact figures in every module: the index, costs, DCA, a 60/40 portfolio, rebalancing, taxes, psychology and compound interest. Beginner-to-intermediate level, explained from scratch.

What you'll learn

  • Tell active management from indexing and why cost rules
  • Choose between index funds and ETFs with judgment
  • Apply DCA with real numbers, without relying on timing the market
  • Build and rebalance a conservative portfolio (equities + bonds)
  • Control hidden costs and taxes, and dodge the psychology mistakes
  • Project compound interest over 10, 20 and 30 years and leave with a plan

Course content

  1. What index investing is (vs. active management)
  2. How an index works: the IFLA 500
  3. Index funds vs. ETFs: costs and liquidity
  4. What Dollar-Cost Averaging (DCA) is
  5. The math of DCA: Elena's full case
  6. DCA vs. lump sum: Elena's $6,000 decision
  7. Building a conservative portfolio (equities and bonds)
  8. Periodic rebalancing: when and how
  9. Hidden costs and taxes of index funds
  10. The passive investor's psychology
  11. The power of compound interest
  12. Action plan: how to start this week
Guided by Luz & Niebla