Passive Index Fund

Quick questions:

1. If you were to make biweekly contribution to a passive index fund, what index fund would you contribute too or consider a very good passive index fund?

2. Also seeing that the S&P 500, Dow and NASDAQ are currently high would you save your money and wait for these indices to fall to lower levels and then make your initial purchase and then make biweekly contribution or just start now since there is no way to time the market.

I have some funds in VIG. (See here for details).

These companies have paid and increased dividends for 10 consecutive years. They tend to be higher quality (it's hard to increase dividends for 10 years without being higher quality.)

1. probably the S&P500 and Russel 2K. but this is what you were asking in 2. anyways.

2. the thing is, you can't time the markets. If you are after a passive index, you'll end up buying in smaller pieces and averaging up or down. As long as you keep buying if the market falls, that will put you in a good position in the long run.

The economy will grow somethingl ike 7 out of 10 years so its not unusual to see new highs in the dow and s and p 500. If I were you I'd do like the vanguard total market index + total bond index and adjust the percentages according to your time horizon/risk tolerance/blah blah. Then have it automatically deposit each month and not sweat it no matter what the market is doing.

If you want to get cute, you can always sell off a large chunk of whatever bond index holdings you had and dump it into the market index in the event a major correction occurs, then slowly rebalance after that ....

But if not, then the dividends in the fund will reinvest in itself anyways so you'll automatically get bigger dividend "chunks" in the event of a correction.