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A 70/30 or 60/40 split with regular rebalancing can smooth out market fluctuations. When stocks do well this pulls money out and locks in the gains at a time wh
by fredophile 8y ago
A 70/30 or 60/40 split with regular rebalancing can smooth out market fluctuations. When stocks do well this pulls money out and locks in the gains at a time when psychologically you want to let it rise. When stocks are doing badly this also forces you to buy at a discount when you might be inclined to keep the money on the sidelines out of fear of future losses.