Stock bond allocation by age
One such popular rule is the “100 minus age” rule, which says you should take 100 and subtract your age: The result is the percentage of your assets to allocate to stocks (also referred to as equities). Using this rule, at 40 you would have a 60% allocation to stocks; by age 65, you would have reduced your allocation to stocks to 35%. People have tweaked the age in bonds rule by introducing modifications to the rule, such as bonds = age – 10 or bonds = age – 20. Essentially, this allows younger investors to hold a minimal amount of bonds in their portfolio.