<p>Thank you all for valuable suggestions. Keep them coming. vballmom, thank you for the book title.</p>
<p>Lots of solid suggestions. But I would reiterate what I think are the most important points:</p>
<p>Know your risk tolerance. What can you afford to lose? How much would drive you nuts even if you could afford to lose it?</p>
<p>Know your time horizon.</p>
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<p>Good advice. And to take it a step further — asset allocation is *way more important *than particular stock selection.</p>
<p>Once you have determined your risk tolerance and your time horizon, then you’re on your way. Break things down into basic asset classes (fixed income, and equities), and then apply a split factor based on your risk tolerance and time horizon. If you’re risk-averse and your time horizon is short, you should be more heavily weighted in fixed income, as opposed to equities. And vice versa.</p>
<p>Then break down the basic asset classes into sub-divisions. For example, on the fixed income side, you could have long-term bonds, intermediate-term bonds, and short-term bonds. On the equities side you could have domestic stocks, international stocks, and real estate funds. Just an example, you’re certainly not limited.</p>
<p>Finally, I would invest in mutual funds with a trusted “house” with low fees (say, Vanguard). Even dartboards have better luck with stock selection than some “financial advisors”. Unless you REALLY know what you’re doing (and I’m guessing you don’t, given your OP), cherry-picking stocks is a recipe for disaster. Go with well-respected mutual funds for your asset classes and sub-divisions.</p>
<p>Re-balance every year so that you’re maintaining your asset class split. And change your asset class split based on your changing life happenings (i.e. changes in risk tolerance and time horizon).</p>
<p>My two cents- the best investment strategy is to keep your debt load under control and be a consistent saver. Even if you are not lucky enough to invest in a winner you will still be okay.</p>
<p>Thank you everyone. We paid all the debt a while ago in preparation of retirement. I think my emotion will be the biggest hurdle.</p>
<p>I joined a women’s investment group to learn more about investing. That might be a thought for you as well. Good luck</p>