Stocks and Bonds Diversification

Here's a very simply rule on how to diversify your stocks and bonds (fixed income).

According to Fast Money Trade School, you can make it easy by following this simple rule.

The percentage of fixed income in your portfolio should mirror your age. So if you're 30% years old, it means that 30% of your portfolio should be in bonds and the rest in stocks.

What can you see here? From what I see it means that the younger you are, the more percentage you can invest in more aggressive investments like stocks.

Like if you're 20 years old, you can put 80% in stocks. But if you're 30%, you can put only 70% in stocks.

Of course, this is only a general rule.

Happy investing!