How do you allocate assets to a portfolio based on age?

Others include time horizon, risk tolerance, income, and financial goals. You can allocate assets to your portfolio based on age using the ‘100 rule’ or 120 rule.’ Redefining your asset allocation may be necessary for the event of new information, lifestyle changes, and wrong risk tolerance assessment.

What is the ideal asset allocation strategy as you age?

The widely accepted strategy for asset allocation by age suggests that the percentage of stocks in your portfolio should be 100 minus your current age. For example, at age 40, 60% of your portfolio would be in stocks.

What are age-based asset allocation guidelines?

You may have heard of age-based asset allocation guidelines like the Rule of 100 and Rule of 110. The Rule of 100 determines the percentage of stocks you should hold by subtracting your age from 100. If you are 60, for example, the Rule of 100 advises holding 40% of your portfolio in stocks.