<prompt> Human: I just started a Roth IRA with Vanguard and was looking for some advice. I am young so should I start with riskier funds? Also, should I diversify early or wait until I get some decent money in the account and then move it around?  <response>: Generally, being younger allows a person to take on more risk because historically the stock market tends to average out through ups and downs over extended periods of time. You can also get into tax-inefficient funds capital gains, dividends, etc. because of how the Roth IRA itself works. If you buy into index funds, you can achieve diversity easily. Example: Vanguard Total Stock Market Index Fund is designed to provide investors with exposure to the entire U.S. equity market, including small-, mid-, and large-cap growth and value stocks. -- you are buying into a lot of diversity within the US stock market by buying VTSMX. Some strategies:1 Get into a Target Date Retirement fund. Its the option that requires the least active management and research on your part. The asset allocation will be adjusted by the fund managers as the target year approaches.2 Buy Total Stock Market, keep investing in it until you get the lower-cost admiral shares. Repeat with Total International Stock Index, then repeat by rounding it out with Total Bond Market Index. After that, figure out your asset allocation and adjust it via how you invest your yearly contributions by purchasing more of a particular fund, in the more distant future by selling the two stock funds to buy more bond funds. This requires more active management on your part and will leave you heavily weighted in certain areas until you get sufficient funds in your Roth IRA to play with. 10k for admiral shares on each means 30k or six years of contributions!2a Less efficient, but buy the individual funds in small amounts and get the Admiral Shares at a later rate as each fund passes the threshold for them.2b I think you can do this? Buy into a Target Date fund, then once you have enough invested in it to get into Admiral Shares of the individual funds, sell some of the Target Date Fund to buy the individual funds.3 Research and find funds you really like, even actively managed ones or sector funds if you so choose. This may require the most research and active management on your part, but you may find something you like. 