What Joel said.Save up 9-12 months of cash, lock it away in some high yield FDIC investment. You'll make peanuts in interest on it, and hate yourself a little, but who cares... just do it.Then, take the rest of your money for the rest of your life and invest for the long term in whatever will generate the best returns with moderate risk (bonds, stocks, real estate or maybe a bit of all of them).The cash will be the the thing you live on if like Joel you hit a rough patch without (too) much worry, but alternatively during the downturns where you are still employed, the cash will be what gives you the perspective and safety to take a few well placed risks when all your coworkers and people your age are soiling themselves.I was a buyer hand over fist in '08 and '09, it was truly a life changing experience for me. I'm not that smart, I just tried to learn from smart people and I had my finances in order so I had a cool head when many others didn't. I think that should be your goal more than having some allocation to bonds to reduce volatility... that may not be what you really want / need.Hope that helps!Ben
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