If you desire to build a conservative portfolio of individual stocks that will likely have a lower beta than the S&P500 consider giving the following thread a study:

http://www.onlinetradersforum.com/t....g-list.659009/

12 years out from retirement you are probably looking at a recommended asset class mix of 50/50 stocks to bonds/cash. I would look to transition this to 40/60 stocks to bonds by the time you retire gradually moving toward a 20/80 mix as you age. The individual stock portfolio methodology outlined in the thread above coupled with tax-exempt municipal bonds would likely serve your needs for safety of principal, income, and purchasing power preservation to mitigate the effects of inflation.

You owe it to yourself to set aside 19 minutes to watch the following (pass it on):
http://youtu.be/jboTeS9Okak
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Perspective:
http://frontpagemag.com/2012/dgreen....p_FrontPageMag
http://www.rushlimbaugh.com/daily/20...nta_claus_wins