put it in a vanguard index fund (s&p 500 or total stock market). otherwise, you will likely lose money,

VYM

Maybe buy a riskier stock fund,then spend other half on TIPS or T-Bills.

Buy a dividend fund. Seriously, if you are buying based on heresay advice, this is your best course of action. You won't be able to stock pick, you'll just be buying an expensive lottery ticket.

Some people want income from dividend paying stocks.... The financial stupidity on DCUM is amazing.

Anonymous wrote:isn't this what is recommended - invest in stock that pays good dividend and reivest the dividend?

That was the recommendation way back when, when buying stocks in small quantities was difficult and expensive and the tax code had more loopholes. Nowadays the simplest thing is to buy a well indexed mutual fund according to your asset allocation, preferably in a tax sheltered vehicle. The Roth is a good choice if you might need the money before retirement as contribution can be withdrawn penalty free.

Anonymous wrote:isn't this what is recommended - invest in stock that pays good dividend and reivest the dividend?

yes

isn't this what is recommended - invest in stock that pays good dividend and reivest the dividend?

Why would you want a dividend paying stock? It's best to look at the overall stock - if you need income, sell some of it as needed.

If you had $5K and wanted to buy dividend-paying stocks, which ones would you buy?