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My wife and I found two stocks with a 20% return. We have $75,000. Should we invest it in the S&P 500 or individual stocks?


Published on 2025-03-22 23:01:03 - MarketWatch
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  • There are headwinds whether you choose individual stocks or the S&P 500, including President Donald Trump's tariff policies and the lack of certainty surrounding them, along wit

The article discusses a couple's dilemma on whether to invest $75,000 in the S&P 500 or continue picking individual stocks after experiencing a 20% annual return from two previous stock picks. The couple, who have been investing for about a year, are considering the benefits of diversification through an S&P 500 index fund, which offers lower risk due to its broad market exposure. However, they are also tempted by the potential for higher returns from individual stocks, despite the increased risk. The article explores the pros and cons of each strategy, highlighting the importance of risk tolerance, investment goals, and the psychological impact of market fluctuations. It suggests that while individual stocks can offer significant gains, the S&P 500 provides a more stable, albeit potentially less lucrative, investment path. The piece concludes by recommending a balanced approach, possibly combining both strategies to mitigate risk while still allowing for some speculative investment.

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[ https://www.msn.com/en-us/money/markets/my-wife-and-i-chose-two-stocks-with-a-20-annual-return-should-we-invest-75k-in-the-s-p-500-or-try-individual-stocks-again/ar-AA1BizwN ]