21 best money tips ever
Some of the nation's leading business owners, investors, and thinkers share their thoughts on rebuilding your wealth.
7. Invest age-appropriately
Vanguard Group founder, who popularized investing through index funds
Best advice I can give: There is much that is worrisome in our economy. That's why your bond position should be commensurate with your age. In my case that means I have more than 80% in bonds. Someone in their fifties should consider 50%.
The value of the bond position is not just that it provides you some protection in a down market -- it does, of course. But its value is that it keeps you from making behavioral errors such as selling stocks during a panic.
Best advice I ever got: In the summer of 1949, I had a job as a runner at a brokerage firm. And one of the other guys working as a runner said, "Let me tell you all you need to know about the investment business: Nobody knows nuthin'."
He was right. Over the short term, we know nothing about what the markets will do.
NEXT: Be on the lookout for opportunities
