No. of Recommendations: 2
Fools would suggest you invest as much as you can in an S&P 500 Index fund. That is because historically over time, the S&P gives reasonably consistent returns of 11%--better than you can expect in bonds.

Real estate can be an OK investment, but you will need to make the effort to select the right property at the right price and manage it. That may not be easy, and if done wrong can certainly cost you. So at least be cautious.

If you are uncomfortable with risk, then your choice is probably putting some of the money in bonds. Owning the bonds themself in a laddered maturity bond portfolio is the best way. Consider tax free bonds if they make sense in your tax bracket. If you are risk averse, you can put up to 50% of the money in bonds, but less is better, especially if you are young.

Gold and gold stocks have been doing very well over the last six months or so. Most think this is a temporary situation. No one knows how long it will last. Therefore, I would avoid gold.

Best of luck to you.
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