FirstStepsInvesting

Decoder · How risk works

Asset allocation

The mix of kinds you hold — how much in stock funds, how much in bond funds, how much in cash-like holdings. It is the biggest driver of how bumpy your ride is. This site explains the word and shows how published example mixes differ; it never sets a mix for a person — that choice, made for you from your situation, is advice, and advisers are the people licensed to give it.

For your first $100: For your first $100, the mix question is small. It grows with your balance and shrinks as your goal gets close. Learn the word now; the stakes come later.

Diversification, in plain wordsRisk, in plain words

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See this word inside your order