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Personal Finance > Investing Basics Stocks, bonds and mutual funds: How to balance your portfolio: 3 of 7

The best way to balance your portfolio between stocks bonds and mutual funds, is to first assess your level of risk tolerance. You'll need to ask some important questions and be honest with yourself. Here are a few examples: 1. How old are you? Typically, older investors will have a larger percentage of their funds in bonds or low risk mutual funds and less in common stock. Some preferred stock is not unusual since this form of security behaves more like a bond then a stock when it pays its dividends. The reason for this is that you have less potential earning time than a younger person, a...
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