What percentage of your portfolio should be invested in stocks?
There is no hard and fast rule, but as you get older and closer to retirement, you should lower your stock exposure in order to preserve your cash. As a general rule, subtract your age from 110 to determine the percentage of your portfolio that should be invested in equities, and alter this percentage up or down depending on your risk tolerance.
Individual stocks vs. index funds?
An index fund allows you to invest in a variety of equities with just one purchase. An index fund, for example, gives you exposure to all 500 stocks in the index.
Index funds … Read the rest