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Comment by NoboruWataya | Hacker News Reader

I believe the first broadly diversified ETF didn't come about until a few years later, so realistically there wasn't an easy way for a retail investor to invest 5k in "the market" back then.

(EDIT: Not true, see below.)

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Vanguard launched an S&P 500 fund for retail investors in 1976.

I stand corrected! I was just thinking about SPY and its ilk.

Well, your "5k" figure is still probably accurate. They had much larger minimums at launch.

I graduated in 1993 and going back through my old Quickbooks file, my 1993 IRA contribution went to a broad-based fund at Twentieth Century (now American Century). It was a half-year of working and all I could scrape together was $2000 and they accepted it to invest. I suspect making a mutual fund investment for $5000 (over $10,000 today) would have been possible three years prior.

Amusingly, for 1993, looks like you maxed out what you could even do in an IRA?

Searching for "Vanguard S&P mutual fund minimum 1993" shows that many had a minimum of 3000? I'm guessing that is the same general search you were doing?

I'm torn, as I want to think this isn't wrong. However, I also remember you could buy a car for 10k EASY in the early nineties. Was a pretty decent sum to make in a year. Especially if it was on top of all other expenses. I'd also hazard that for many, getting a car to commute to a job would have probably been a better investment. (Of course... this is only true if you use the car for the added productivity.)

Interesting that the limit was that low. I remember having to borrow money to make the $2K investment before the deadline, but didn’t realize that was maxing it out. (My dad was the one telling me to do it; I’d have been entirely clueless at that point otherwise.)

Yeah, 2000 to invest was not a tiny amount back then. I know I felt rich to have an extra hundred or so a paycheck.

Massive kudos to your dad for getting you to do this!

That's very fair. Index funds are conventional wisdom now, but I do suspect there was a long time where they were undervalued because fees were high. Now, everyone is encouraged to invest in them and do think the conventional wisdom in 30 years could possibly swing back to real estate or something like "index funds of tech"

> Index funds [...] fees were high

According to https://corporate.vanguard.com/content/corporatesite/us/en/c... they were 0.35% in 1990. Higher than now, but hardly "high".

Of course there are other fees involved and everything was more complex and more expensive.

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