Shares vs bonds: picking your mix by age and goal

5 chapters·17 min·action plan·mastery check

Chapter 1 of 5

The idea

Your mix of shares and bonds decides most of your results — far more than which fund you pick.

What the mix does

Shares grow more over long periods but can drop 30–50% in a bad year. Bonds grow less but fall less. A higher share of shares suits money you won't touch for 15+ years; more bonds suit money you'll need within 5.

Predict first

In 2008, roughly how far did global shares fall from peak to bottom?

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