There is no single right portfolio for everyone. There are, however, a few proven principles you can start from.
The basic building blocks
- Stocks (ETFs) — the growth engine, but with big swings.
- Bonds — the shock absorber; smaller but steadier returns.
- Cash and savings accounts — your reserve and "dry powder" for opportunities.
- Gold, real estate, crypto — supplements, not the core (5–15% at most).
The age rule
The classic rule of thumb says: stock allocation = 100 minus your age. A 30-year-old would hold 70% stocks, a 60-year-old 40%. With today's longer lifespans and low bond yields, the more aggressive "120 minus age" version is often used instead.
Three model portfolios
- Aggressive (20+ year horizon): 90% global stock ETF, 10% cash.
- Balanced (10-year horizon): 60% stocks, 30% bonds, 10% gold.
- Conservative (up to 5 years): 30% stocks, 50% bonds, 20% savings account.
Rebalancing
Once a year, return your portfolio to its target weights — sell part of what has grown and buy what has fallen. That way you automatically sell high and buy low, without emotion and without forecasting.