Nubian...

Which index funds to you invest in?
I'm actually considering SPY(I don't have enough balance in account
to open a Vanguarg(vfinx) account.

Actually, you don't have to have a lot of pocket change to invest with Vanguard. I Have been pretty happy (to say the least) with Vanguard's Total Stock Market Index Fund in the Exchange Traded Fund Format (VTI) for some time now. The difference between (SPY) and (VTI) is small, but many races are won by a "nose". The chart for the two looks like this:

http://www.quicken.com/investments/charts/?p=SPY,+VTI&tag=1

I buy (VTI) through ShareBuilder who only charges $4.00 a purchase.

http://www.sharebuilder.com/

It would be adviseable to ensure that your purchases ((whether (SPY) or (VTI))) are large enough to deminish the purchase fee percentage to justify utilizing an ETF over a regular index fund. To me, a $200 purchase with a 2% fee attached would be satisfactory - to others, maybe not. Purchasing an index fund for nothing certainly is better than purchasing an ETF for a fee, however, each of us has our own personal set of circumstances to deal with and have to make our own decisions as to which works best for us.

Bill