These two examples are clear cut, and they don’t represent all investors. Most personal financial advisors advocate maintaining a diversified portfolio and changing the weightings of asset classes throughout your life. For example, in your 20s and 30s a majority of wealth should be in equities. In your 40s and 50s the percentages shift out of stocks into bonds until retirement, when a majority of your investments should be in the form of fixed income.
Different Types Of Bonds
Government Bonds
In general, fixed-income securities are classified according to the length of time before maturity. These are the three main categories:
Bills –debt securities maturing in less than one year.
Notes – debt securities maturing in one to 10 years.
Bonds – debt securities maturing in more than 10 years.