Ed4252 wrote:Thanks for everyone's response. So individual stocks wouldn't be a good idea even if it's only a portion of my portfolio like 30-50%??
The key idea to remember is whether it is 5% or 100% of your portfolio, having diversification is always better. Diversification is so popular because it allows you to have the same returns as buying a few individual stocks with a lower overall risk. So you get more bang for the risk you take on. There is always some "optimal" risk/reward combonation that you want to have, no matter what percentage of your porfolio it is.
Ed4252 wrote:Is there a way to evaluate mutual funds based on how much risk/growth they will have?
What I did was go to Vanguard and bought one of their "Target Funds." They manage these funds depending on what age catagory you are in and how long you want to hold onto the funds, which sounds perfect for you. They will then adjust the holdings of the fund as you get older (less international, less stock, more bonds).