No. of Recommendations: 0
Texas98: Congrats on starting an IRA and thank you for your service to our nation. I am retired and my wife and I have had traditional IRA's for 20 years. My stocks in my IRA are GE, JNJ, XOM and PG. These are all blue chips, conservative, dividend payers. They have all grown their earnings and, consequently, their dividends very nicely. I also have my accounts at USAA and I have been very happy with their service. I don't know how many years you have been in the Army but chances are you'll have a second career after the service. If you want to sleep at night stocks like those I've mentioned above will afford you that luxury. USAA also offers an SP500 index fund with a very low investment fee so that could also be a good alternative to individual stocks and it would give you a broad cross section of the stock universe. Unless you want to trade your account often I would stay away from go-go stocks like Google and Ebay for an IRA. These stocks have wide swings and can cause considerable heartburn. I also don't think you should put any of your funds, at this time, in bonds or bond funds. You are young. Let the working years ahead of you provide the growth engine for increased wealth. Think about bonds in 15 years or more, or maybe never. I'm in my mid 60's, have no bonds and never had. I do have a federal pension, however, which is like my bond fund. You will have it too with your military retired pay once you end your military career. You will also have social security, or what's left of it. Think of these as your safe haven "bonds", if you will. If you haven't read William Bernstein's "The Four Pillars of Investing" I would recommend it. It makes a very persuasive case for index funds. Good luck to you.
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