4 smart ways to find balance as an investor: Sponsored by Vanguard_Group
on a house, or they can be as small as having some extra spending money at the end of each month. Your goals—and how soon you want to reach them—carry a lot of weight in determining what kind of investment account you should open, and how risky the investments inside it should be. is the most important investing decision you’ll make.
Stocks are the riskiest investments, so a breakdown of 90% stocks, 10% bonds would carry more risk than a portfolio that holds 60% stocks, 30% bonds, and 10% cash. Sometimes a stock-heavy asset mix makes sense for where you are on your timeline, especially if you want to give your investments room to grow. At other moments—like when you’re approaching your target retirement age, for example—it makes sense to shift toward a safer mix that leans towards bonds and cash.
Swings in the market are normal. But seeing the bigger picture can help steady your heart rate during the ups and downs. There’s a good chance following the plan you made when your emotions were in check will put you in the best position to reach your long-term goals. Showing patience and discipline—finding balance—isn’t always easy, but can be worth it in the long run.