For many, bonds act as the "ballast" on a ship, keeping the portfolio steady when the stock market gets choppy.
suggests a "90/10" rule for most: 90% in low-cost S&P 500 index funds and 10% in short-term government bonds for liquidity.
: When interest rates rise, existing bond prices fall. Investors who bought bonds before recent rate hikes learned this the hard way in 2022. Expert Perspectives
: If you need a specific amount of money on a specific date (like for a house or tuition), buying individual bonds that mature at that exact time can guarantee you get your principal back. The Case for "No": The Growth Trap