Imagine you are in possession of $20,000.
• How would you divide your assets?
• What percentage would go into stocks, into bonds, and into mutual funds?
• How much would you put into a savings account?
First I would put $10,000 in my savings account for my children's collage funds. Next, I would put $2,500 into stock, $1,000 into bonds, and another $1,000 into mutual funds. Then I would have $5,500 dollars left for spending!
