Aha -- your timing is great! I just this afternoon posted a new column that specifically deals with that issue. Click on this link to read why I've always been a fan of index funds. That said, some diversification is a good idea. If you're working with Fidelity or Vanguard or T. Rowe Price they offer that kind of advice at no cost if you have at least $50,000 invested with them. And that's probably where you have your account because they all have index funds, where broker-sold funds typically don't offer index funds because there is no room for commissions!