No. of Recommendations: 1
I would also recommend an S&P 500 or total market index fund, combined with bonds.

Some other specific suggestions (if anyone else can provide some url's, I would appreciate it):
- while you may not want the hassles of managing your own real estate, you might want to check out REITs. They allow you to have some ownership of real estate without having to deal with managing them and in a more liquid form. One concern is that a lot of their return comes in the form of dividends, so it may be best to hold them in an IRA, but it is a good way to get another asset class in your portfolio
- when considering bonds, you may want to look into TIPS or I-bonds. With TIPS, you again have some tax issues, but especially if it is going to be a while until you need the money, these bonds make sense. This way you have the security of U.S. bonds while maintaining the inflation protection.
- you probably want to at least investigate the efficient frontier information on asset allocation. These are set up to help you figure out what sort of percentages in each type will help you get the highest return. Since you are more conservative, you may want to weight the more conservative asset categories (REITs, bonds, etc.) more heavily than is totally efficient.

Just my $.02,
FriendlyGirl
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