We have a simple allocation model.
Stocks can be volatile in the short term, but tend to perform well in the long term.
Any funds that you'll need to use in the near future should be in something more stable, such as CDs, money market funds or perhaps bonds. We roll our eyes when financial experts announce they're changing their recommended portfolio mix from something like 47 percent stocks to 49 percent stocks. Such unnecessary tweaking can rack up commission charges and generate capital gains. The book contains 500 questions and answers on personal finance and investing topics, and roughly half of them originated in our newspaper feature. The other half are brand-new.