If I want long-term investments, should I choose stock funds or bond funds?

What is dollar cost averaging? Should I dollar cost average?

What is the difference between a hedge fund and a mutual fund? Are hedge funds available to individual investors?

What is the expense ratio of a mutual fund?

I’m 24 years old and have just started making real money in an information technology job. But I’m about to change careers to become a state trooper. All my friends and family say I’m crazy to do this. I will be taking a severe cut in pay. I believe I can live on my trooper’s salary, but I want some money available in a reserve if something unexpected comes up that I need. I have about $2,000 to invest now, but I’m not comfortable investing it because I know so little about it. How should I invest while I’m a trooper? And can you recommend a good book on basic investing?

I enjoy your advice but I can’t help wondering why you always have value stock mutual funds in your Model Portfolios and your recommendations. Why isn’t it good enough to just have four funds, such as a portfolio of the Vanguard Index 500 (for large-cap), Vanguard Small-Cap Index (for small-cap), Total International Stock Market (for international funds) and Total Bond Market Index? I just don’t understand why it’s necessary to make a portfolio more complicated than it needs to be.