47 0 how to invest in stocks at a young age 0 13 6. How diversified should my Roth IRA investments be? How do I select the right balance being a 28-year-old? A: First, good for you for reinvesting your retirement savings.

And you lose years of growth when you drain a chunk of savings. So you’re off to a good start by rolling that money into an IRA, says Brad Sullivan, a certified financial planner and senior vice president at Beverly Hills Wealth Management in California. At your age, you have thirty or more years until retirement. With such a long-time horizon, you need to be focused on long-term growth, and the best way to achieve that goal is to invest heavily in stocks, says Sullivan. Over time, stocks outperform more conservative investments, as well as inflation. Granted, stocks can deliver sharp losses along the way, but you have plenty of time to wait for the market to recover.

A good starting point for setting your stock allocation, says Sullivan, is an old rule of thumb: subtract your age from 110 and invest that percentage of your assets in stocks and the rest in bonds. But whether you should opt for that mix also depends on your tolerance for risk. You don’t want to get so nervous that you pull your money out of the market when it is down. For more portfolio help, try this asset allocation tool.

All this might seem complicated, but it doesn’t have to be. You could put together a well-diversified portfolio with a few low-cost index options: A total stock market index fund for U. Retire With Money Sign up to receive key retirement news and advice. Another option is to invest your IRA in a target-date fund. You simply choose a fund that’s labeled with the year you plan to retire, and it will automatically adjust the mix of stocks, bonds and cash to maximize your return and minimize your risk as you get older. Among people in their 20s, one-third have retirement savings invested in target-date funds, according to the Employee Benefit Research Institute. Keeping your investments in a Roth is also smart.