: 2–4 years of upcoming spending in high-quality, short-term bonds. Equities : The remainder in stocks for long-term growth.
: Every dollar in a bond is a dollar not invested in stocks, which historically offer much higher long-term returns.
suggests a "90/10" rule for most: 90% in low-cost S&P 500 index funds and 10% in short-term government bonds for liquidity.
: When interest rates rise, existing bond prices fall. Investors who bought bonds before recent rate hikes learned this the hard way in 2022. Expert Perspectives
Corporates, or should we look at how to for a specific goal?
As of April 2026, many investors are using a "tiered" approach:
