The core of a portfolio is the boring part that does most of the work. Two or three funds are enough.

A world stock fund or an S&P 500 fund — for growth.
A bond fund — for calm. The sooner you need the money, the more of it and the shorter the bonds inside.
A little gold — optional, as crisis protection.

Shares are chosen by horizon and nerves. Rough guides: a young investor with 20 years — 80% stocks and 20% bonds; 5–7 years before the goal — half and half.

Then three rules: buy regularly, bring the shares back to plan once a year and touch nothing in a panic.

If you live outside the US, learn about funds registered in Europe (called UCITS): for non-Americans they usually carry a lower dividend tax and no US estate tax. The rules depend on the country — check yours.

Bonds and funds