How Much Should I Invest in Stocks? In Bonds?
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In this series, Tips from the Pros, Money taps the collective wisdom of expert financial planners.
There is a difference between stocks and bonds. The stock market offers investment growth, but higher risk. Bonds are less for growth and more for a steady stream of income. If you want to know how you should be investing your retirement portfolio, one good rule of thumb is to take your age and subtract it from 110. The number you get is the percentage of your long-term investments to invest in stocks; the rest can go into a bond fund.
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