: 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.
“If a 10% drop in the stock market bothers you and you're 100% in stocks, you might want to consider adding bonds to your portfolio.” Reddit · r/Bogleheads · 1 year ago should i buy bonds
“TLDR: Bonds are for investors too sensitive to volatility in the near term so they exchange long term growth for the prospect of reduced volatility, near term.” Reddit · r/investing · 2 years ago
: 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
As of April 2026, many investors are using a "tiered" approach:
: If inflation is 4% and your bond pays 3%, you are technically losing purchasing power every year. Equities : The remainder in stocks for long-term growth
: 1 year of expenses in high-yield savings or money markets.