Should I invest in index funds or buy individual stocks for my Roth IRA?

Since this is most likely a long-term investment, you would be better off parking your Roth IRA funds in an index fund that mirrors the composition and performance of something like the S&P 500.

This is also true if you are not someone who routinely monitors the stock market. If you dollar-cost average your Roth IRA, your index investing can yield as good of a return as picking individual stocks.

Moreover, index funds can still provide you with dividends. In some cases, if you find the right exchange-traded fund (ETF), you could also earn a monthly payment.

That said, if you prefer individual stocks, some good ideas would be:

Procter & Gamble Co (PG)

• 07/13: $137.00
• Dividend Yield: 2.54%

Wendys Co (WEN)

• 07/13: $22.79
• Dividend Yield: 1.76%

Apple (AAPL)

• 07/13: $145.64
• Dividend Yield: 0.6%