There is a difference between a plan to building up your wealth and there is another plan to staying wealthy. The key is to know how much is enough.
If you have $50k trying to build up to $500k to be ready for retirement or financial independence, you tend to take more risks because you have a longer time horizon. You are probably 25 years old thinking of having wealth to be independent at 50 years old. That’s 25 years old.
You could probably have a 70% equity versus 30% bond allocation. Stocks tend to be very volatile in that at certain points, the equity portion can go down 40-70%. That may be ok (if you have the stomach to take that!) if you are somewhere far from needing the wealth to provide cash flow for financial independence/retirement.
However, suppose you are at 48 years old. A …