I don’t mind taking stock market risk for the promise of decent rewards.

That’s why I’m comfortable owning 60 percent stocks, 40 percent bonds.

Such a portfolio won’t likely grow as much as an investment allocated 100 percent to stocks.

But it’s a lot more stable and it helps investors sleep at night when the stock market plummets.

But what if the stock market scares you?

What if a stock market portfolio drop exceeding 6 percent would drive you to drink?

In such cases, you might consider stuffing your portfolio with bonds or CDs. But that would be foolish.

Image by Pixabay

Here’s a much better option