Building a Diversified Portfolio with Stocks, ETFs, and Bonds
Diversification reduces risk: Don’t put all eggs in one basket.Core assets: Stocks (growth), bonds (stability), ETFs (easy diversification).Sample portfolio by age:
- 20s-30s: 80-90% stocks/ETFs, 10-20% bonds.
- 40s-50s: 60-70% stocks, rest bonds/cash.
Top low-cost ETFs: VTI (total stock), VXUS (international), BND (bonds).
Rebalance annually—sell winners, buy laggards.
Risk tolerance matters: Aggressive for long horizons.
Start with target-date funds if hands-off.Diversified portfolios historically weather crashes better.
Invest consistently via dollar-cost averaging. Build wealth patiently.
