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Washington Post

Despite recession fears, moving all your money from stocks to bonds is a bad idea if retirement is a long ways off

By Michelle Singletary

“Bonds are not bad if you have a long time for retirement,” said Nick Holeman, a certified financial planner and senior financial planner at online financial adviser Betterment. “However, they likely should only represent a small portion of your retirement portfolio. Usually, stocks are the main driver of growth in your portfolio, and bonds are there for stability. If you de-risk your portfolio by holding lots of bonds while you are still very young, you will likely miss out on a lot of compound growth. Since your investments won’t be growing as much, you will likely need to save much more of your paycheck to still retire.”

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This article originally published August 15th, 2019 on Washington Post