3 Asset Allocation Rules You Should Know by Heart
Investing in stocks is one of the greatest ways to build long-term wealth available to ordinary Americans. Despite the long-term benefits, stock investing carries with it several risks that make it a bad idea to keep 100% of your money invested in stocks throughout your entire life. Even Warren Buffett -- arguably the greatest stock investor of our time -- has left guidance for his wife for after he dies that indicates that she should own some bonds in her portfolio.
Indeed, to borrow percentages from that guidance, investing in stocks for the long haul is around 90% of what it takes to wind up comfortable. The other, equally important 10% comes from having a smart asset allocation strategy. With that in mind, here are three asset allocation rules you should know by heart.
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Source Fool.com
