If nothing else, you could add the money to a target retirement or life cycle fund closest to your retirement date. All the big fund companies offer them (Vanguard, Fidelity, T. Rowe Price, etc.). I looked through my IRA, which is mostly in invidivdual stocks (about 25% in funds, the rest in stocks). It's hard for me to find a stock I'd suggest as undervalued right now, due to the extended run-up we've had since last summer. I try to follow dadofandrew's approach and buy a company's stock when it's temporarily beaten down or out of favor. I got Microsoft (MSFT) last July at around $21.75, and it's now at $30.01. Similarly, I picked up Franklin Resources (BEN) in July at ~$85, and it closed today at $134.91. I still hold both as I don't feel they're overvalued yet. I picked up Johnson & Johnson (JNJ) in November, but that one hasn't done much for me yet. I'm down a few percent on that one (about 5%). If you're patient enough, you'll eventually be able to pick up something at a good bargain. I have about ten stocks that I'm watching now, but they haven't dropped enough for me to buy in. One stock that I've held for about three years, and that you may consider, is Oshkosh Truck (OSK). They're very good at allocating capital to smart acquisitions, then driving margin improvement at acquired companies. It's near a 52-week high and maybe a little expensive P/E-wise, but for a long-term purchase I think that one will pay off well. I also took a small flyer on TomoTherapy (TTPY), a Madison company that recently came public. They're growing rapidly, and just at the point of turning profits now. However, being a smaller company, there is an added element of risk there. I also have a decent portion of my portfolio in blue-chip large cap companies like Citigroup ©, General Electric (GE), Procter & Gamble (PG), along with JNJ and MSFT. They all pay dividends and carry a little less risk than some of the smaller companies I own.