From The Dividend Guy Blog:

... So how do you invest without taking [on] much volatility?

Truth: Volatility is controlled via your asset allocation. (Yup, it’s that simple!)

If we go to Michel's situation; he has a good pension plan, no debt, he's 60 and has money to invest. Does he have to take on volatility? Absolutely not. But the real question is...

"Is he willing to leave growth on the table for the sake of less fluctuations?"

If the answer is yes, he should not invest more than 25%-30% of his portfolio in stocks. Technically, he could invest 100% of his money in bonds as he really doesn't need much yield. But this would incur other problems...

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