I am not an investment advisor but generally speaking people in your age group would be investing in "fixed Income Funds"
Fixed income funds are funds that are investing in AAA bonds and treasury securities.
These funds generally carry much less risk which is what someone in your age group would want
you don't have time to make more money, instead you need to preserve what you have.
With less risk comes a lower return but at least your principal capital should be preserved.
Look at Morningstar for a good analysis of prospective fixed income funds. See link here - http://www.morningstar.com/Cover/Funds.aspx
ETF's are even a great option now adays as they generally carry less transaction costs but you have to be very mindful of the management fees they charge.
At your age you would generally want to stay clear of equity securities such as (common stock). These investments carry more risk which you cannot tolerate at your age as it is difficult to earn more income.
I hope this helps you in some way.
Please let me know if you have any follow up questions and I will do my best.
Would you t
How about balanced funds?
Are balanced funds also a good idea?
As I mentioned before, I am not an investment adviser so I am not giving advice here.
Balanced funds would also not be in your portfolio. Balanced funds also face market exposure as they invest in equities and riskier investments.
Note though that if your risk tolerance is higher these may be more suitable than an actual direct equity investment. You have to determine what you are willing to "risk" from there you can diversify your portfolio accordingly.
I hope this helps. Let me know if you have any follow up questions.