Asset allocation — how you split money between stocks, bonds, and cash — is one of the biggest drivers of both your long-term returns and how bumpy the ride feels. It matters more than picking individual investments. This is educational information, not personalized advice.
Asset Allocation
The stock/bond mix that drives most of your results.
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Stocks vs bonds
Stocks offer higher expected growth but bigger swings; bonds are steadier but grow more slowly. A longer time horizon generally supports more stocks, because you have time to ride out downturns. As you approach your goal, shifting toward bonds reduces the risk of a bad year right before you need the money.
Finding your mix
A common starting framework ties your stock percentage to your time horizon and comfort with volatility — for example, more aggressive early on, more conservative near retirement. Target-date funds automate this. Whatever you choose, pick a mix you can stick with through a downturn.
Educational information only — not investment advice, and not a recommendation to buy any security. Expense ratios are approximate and can change; verify with the fund issuer. We are not a licensed financial advisor.
Frequently asked questions
What's a good stock-to-bond ratio?
It depends on your time horizon and risk tolerance; longer horizons generally support more stocks. This is educational information, not advice.
How often should I rebalance?
Many investors rebalance once or twice a year, or when their mix drifts materially from target.
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