Mastering Financial Success: Understanding the 10 5 3 Rule
The 10 5 3 rule is a straightforward financial guideline aimed at helping individuals set realistic expectations for returns on different types of investments. It suggests an annual average return of 10% for stocks, 5% for bonds, and 3% for cash or cash equivalents. This rule is helpful for simplifying complex investment strategies into manageable ideas, making it accessible for both beginner and seasoned investors seeking to optimize their portfolios for long-term success.
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