The rule of investing success

From: Internet

THE RULE

You must have stocks and bonds in your investment portfolio

Asset allocation

TYPE	Age	Stocks	Bonds
GROWTH	40s or younger	70%	30%
BALANCED	50s to 60s	50%	50%
CONSERVATIVE	70s or older	20%	80%

Or simply

% stocks = 120 - age

Index mutual funds

You really only need 3 mutual funds to cover entire stock and bond market.

1) Total US market stocks index fund

2) Total foreign stocks index fund (10% to 15% of your stock portfolio, most large US companies already are global company.)

3) Total bonds index fund