How diverse should I be with $5,000?

I'm 19 years old. I've maxed my Roth IRA for this year and am currently a sophomore in college. I have also been making monthly payments on my tuition for the past 3 semesters. I have almost half of my freshman year paid off.

My parent's told me that if I invested $5,000 of my own money, they would match the $5,000 and pay off the rest of my freshman year.

Because of this, I feel comfortable putting money away and would prefer to do so for a longer period of time (15-20 years).

My question is, how diverse should I be with my money? I was considering something like the Russel 3000 or S&P 500, but is this too broad or too diverse for a 15-20 year period? Should I even consider global markets?

I'm looking for something that's stable. I don't expect to be a millionaire or anything close to it from this initial investment, however, I would like to see some sort of growth over 15-20 years.

Investing, IRAs, Lifestage Based Planning
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Great job on maxing out your Roth IRA! You are already a step ahead of most investors your age.

If sounds like you would like some decent growth without putting too much risk into the investment.

Two suggestions:

  • Ensure you are properly diversified (low-cost ETF funds are recommended)
  • Get advice on a moderately allocated portfolio (debt/bond vs. equity/stock funds)

A properly balanced portfolio can include global markets but should also include a core domestic index holding.

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