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What is the most appropriate strategy to invest with for a ROTH IRA? Should the IRA be diversified
like any other portfolio, should I just chuck all $2000 in one index fund every year, or should I use the
Rule Maker strategy, buying 10 stocks and leaving it alone? With relatively little money in that account
($4000 currently) and $2000 limits on contributions/year, I am not sure I could diversify much.


The money in your Roth IRA should be just one part of your diversified portfolio. Buy and hold stocks would probably be a better idea for the taxable portion of your portfolio, as you could control capital gains and losses. If there's a place in your portfolio for any actively managed funds, you should probably have them in a tax sheltered IRA or 401K plan.
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