When things do turn around, how much to have in stocks market and bonds/money market.?
You must own some stock no matter what your age. You also have to balance your portfolio with low risk investments to protect yourself from stocks market sell-off.
The formula is easy.
Your age is the percentage you should have your portfolio in bonds/money market. If your age is 45, then have 45% in bonds or other reduced risk investments.
100 minus your age equals the percentage you should have in stocks.
(100 – 45 = 55) 55% in stocks.
This will give you opportunities to capitalise on stocks market uptrend to provide a rich retirement capital and also provide you passive income from your golden eggs bonds/money market.
Thursday, January 22, 2009
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