In "The Intelligent Investor" Benjamin Graham states that you should never have more or less than 75-25% of your investments in stocks or bonds. It does not matter how old you are in-regards to how you weigh your investments. You should invest according to how comfortable you are with your risk allocation.
He also suggests that you reevaluate your portfolio twice a year to keep the percentage allocated to each category the same. E.g. Your portfolio consists of 64% stocks and 36% bonds, if your portfolio goes to 65% stocks and 35% bonds, sell the percent in your stocks to balance your portfolio. January 1 and July 4 are two great dates to evaluate your portfolio.
Also, instead of buying separate bonds from a company, invest in a mutual fund. You can also invest in ETFs (equity traded funds; for more information regarding ETFs go to http://www.sec.gov/answers/etf.htm).
Remember that investing should be a long term goal. If you are day trading you are gambling with your hard earned money!
1 comment:
what are annuities?
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