key concepts
- Investing flowchart
- Stocks
- Bonds
- Mutual funds
- Exchange-traded funds (ETFs)
- Financial risk
- Brokerage accounts
- Asset allocation: approach in which you combine different investments into one portfolio
- Long-term for novice investor in twenties: 85% in stocks, 10% in bonds, 5% in highly liquid assets
- Switch stocks for bonds as you age
- Long-term for novice investor in twenties: 85% in stocks, 10% in bonds, 5% in highly liquid assets