This posed an interesting financial question.  My family was getting a pension from an old job.  We could take it as an annuity, one that was paying about 5.5% or it could be rolled over whole into an IRA or with 20% deducted into a normal savings account.    We chose to roll it over into the IRA.  The 5.5% annuity was tempting (nice rate, guaranteed income) but it meant losing the principle.  Plus it wouldn't grow with inflation and if the owner died payments would stop and not be transferable.    Losing 20% on day one also didn't seem wise, particularly if we didn't need the money right away.  Rolling it over preserves it and lets it ride tax free, til taken out.  Even if we only got 4 or 5% (versus a probable long term 8%) in growth and dividends, we'd still have the principle, whereas with an annuity the big initial chunk is essentially gone.   Here is my advice to her for investing it: 40% 50%in VYM, a vanguard fund that invests in the higher dividend stock in the S&P500.  Low expense- .20%, its beaten the Dow stocks by a little over the past 5 years.  Not the SP500. but it has a much larger dividend.   Stock prices go up and down, but dividends are what you keep.  I like them.  Buying the Dow (DIA) or SP500 (SPY) or this one VYM, tends to beat 80% of active ETF's and mututal funds, ie the professionals, especially if you reinvest dividends.  The little fact that they continually drop out the worst also helps them do better then average.  So why individual stocks? Partly ego, and the fact hope some will do very well and with higher dividends a good stock can earn the equivalent of 7 to 10% on your originally money in 5 to 7 years due to dividend growth and some stock rise.    Add 10% each to several stocks already in her IRA, ie adding to winners ADP, nice steady growth, up 70% in 5 years and decent dividends.  A consistent grower. AVA, nice dividends, up 65% in 5 years, the rare oil & gas fund that isn't too erratic. O, a REIT play, good dividends(4.4%), erratic and doing poorly of late, but its long term record is very good.  Plus price isn't good diversity play as its not tied as much to the general market.    Add 15% to these 2. Scotts Miracle Growth.  Good stock, nice growth over 5 years-(+100%) decent dividend.  It's also a slight marijuana play, in that its been investing in hydroponics businesses that should do well as legalization increases.   FDN, an internet ETF.  This a play on FANG, the 4 stocks that by themselves are responsible for much of the an entire stock market rise.  Facebook, Amazon, Netflix & Google.  All are very high priced- Amazon alone is over $1,000.  Always questionable to buy things at nosebleed prices but these are powerhouse stocks that own there field.  I don't feel good about it, the expense is .54 (not horrible) but this was the way to invest the last 10 years.  At some point you have to jump on a powerful trend.