Excerpt from Kiplinger published March 22, 2021

Start with an asset-allocation plan. Set targets for how much to hold in stocks, bonds and cash or other assets appropriate for the length of time you have to invest and your risk tolerance, says Eric Walters, a CFP in Greenwood Village, Colo.

A portfolio for a moderate-risk investor with a 10-year time horizon might hold 40% in bonds, 35% in U.S. stocks, 15% in foreign stocks and 10% in cash; an aggressive investor with a longer time frame might put 60% in U.S. stocks, 25% in foreign stocks and 15% in bonds.