Diversify Even More

Successful investing depends on allocating a big chunk of your money to commodities and real estate securities, as well as to stocks and bonds, argues an asset-allocation guru.

Still agonizing over your losses during the late, unlamented bear market? Get over it -- and from now on vow that you won’t put too much money in U.S. stocks. Or foreign stocks. Or bonds. Or real estate. Or commodities.

Instead, argues asset-allocation guru Roger Gibson, own a broad mix of all those asset classes. Gibson doesn’t believe any investor—even a 30-year old saving for retirement—should invest more than 80% of his or her assets in stocks. Only the youngest and most daring should have more than 70% in them.

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Steven Goldberg
Contributing Columnist, Kiplinger.com
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for Kiplinger.com and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or sgoldberg@kiplinger.com.