Cover Your Assets
One should understand completely as to what is asset allocation. It basically is how much you have in cash, how much in bonds, and how much in stocks. According to the fool's rule, "If you need the money in the next year, it should be in cash, If you need the money in the next one to five years, choose safe, income-producing investments such as Treasuries or bonds. Any money you don't need within the next five should be invested in the stock market. And the last is it is mandatory you own stocks.'
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