Investing is like using your kitchen sink. The right water pressure depends on what you’re doing.
Are you filling a bucket or an iron? Dripping water into a bucket will take forever. Blasting the faucet into an iron will make a mess.
If your financial goal is 10+ years away, you’re filling a bucket. If your financial goal is next year, you’re filling an iron.
Your portfolio’s water pressure is determined by the mixture of stocks (equities) and bonds. The more equities you own, the stronger the water pressure.
Investing mostly (80-100%) in equities is good for your long-term goals. You’re filling a bucket.
Investing mostly in bonds (or cash or CD’s) is for short-term goals. You’re dripping into an iron.
Use your kitchen sink responsibly.
(If not sure how to use your sink responsibly, contact us. We’ll take the pressure (ha!) off of you.)
