In general, stocks are riskier investments than bonds, but their volatility can bring a larger return—which means more money for you. And as you get older, it’s recommended that you gradually shift your portfolio from more stock-heavy, to one that leans more on less-risky, more stable bonds.
How much is enough of each for your portfolio? An easy way to determine your balance of stocks to bonds is to start with 100 and subtract your age. For example, if you’re twenty-eight, you might invest up to 72 percent of your portfolio in stocks, with the remainder in bonds. But by the time you’re thirty-eight, it’s time to drop that stock allocation to 62 percent.