Asset Allocation Age: What’s The Best Asset Allocation for My Age?

What’s The Best Asset Allocation for My Age?

If you have a good amount of money and want to invest but are not sure where to invest, this article is for you

Well, if you’re also uncertain whether to invest in stocks or bonds this article is also for you.

In this article, we will brief you on the best Asset Allocation for any Age.

Hence, if you’ve been wanting to start investing, read this article carefully.

Thus, let’s have a closer looker at the best asset allocation for your age.

The Best Asset Allocation for any Age

Well, the best asset allocation for any age is based on how willing you’re to get the benefit of the stock market. As well as saving some money through bonds or other fixed assets.

However, the more willing you’re to tolerate risk, the more you invest in stocks. Hence, you can reduce your investment. And still have a financial portfolio that functions great.

Simple Asset Allocation Formulas

  • The 100 Minus

Before now, a proposed formula on how to determine the amount of money to invest in stock was as follows:

100 – Your current age = % in stock

For instance, if you were 45 years older, the amount of money to invest in stock will be:

100 – 45 = 55% of your financial portfolio in stocks.

Hence, if you’re 30, your financial portfolio in stock will be:

100 – 30 = 70% of your financial portfolio in stocks.

  • The 110 minus or 120 Minus

Recently, some investment coaches will suggest the 100 minus formula. However, those for want a long-lasting retirement tend to be more aggressive in investing.

Hence, they suggest you go with the 110 minus formula or the 120 minus formula.

Thus, if you’re 35 years and want to go with the 110 minus formula, your financial portfolio in stock will be:

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110 – 35 = 75% in stock

Hence, if you’re 65 years, your financial portfolio in stock will be:

110 – 65 = 45% in stock

Whereas, those that want to go with the 120 minus formula at the age of 35 will have 85% in stock. While those at the age of 65 will have 55% in stock.

Suggested Sliding Scale Based On Age, Performance, and General Asset.

Well, any formula used will perform better in some markets than others.

Hence, if the stock market is thriving, then people that made more investments in stock will do better.

But, if the stock market is down, those with less investment are at lower risk.

However, so far the stock market has outshone the bond market. So, the longer you invest in stock, the better for you.

To sum it up, we suggest you go with the Asset Allocation Formula that suits you best.

Having said that here are some tips you need:

  • Invest heavily in stock when you’re young.

When you’re young with fewer responsibilities, we advise you to invest heavily in stocks.

For instance, if you’re 25 years, you can go with the 125 Minus formula to invest in stock.

Hence, if you’re 25 years with the 125 minus formula, will have 95% in stock (125 – 25 = 100%).

That is to say, at the age of 25 or under, you should have 100% of your financial portfolio in stocks.

However, if you’re older, you can go with the 120, 110, or 100 minus formula.

  • Maintain your Financial Portfolio and reevaluate it every 5 years at least.

You can make your investments in stocks using the 5s and 0s in your age. Hence, if you’re 25 years or under invest 100% into stocks until you’re 30.

When you’re up to 30 years of age you can now reevaluate at this point. However, if the stock market is growing well you can decide to switch to the 120 minus formula.

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That is to say, at the age of 30, you can go from 100% in stock to 90%.

But if the stock market has been low, you might want to stick to the 100% in stock. Also, you may as well go with the 125 minus formula and invest only 5% in bonds.

However, recall that at the age of 30, you still have a long way to go.

Hence, it is okay to take risks and invest your money in different stock portfolios like; S&P index fund.

Using the example of a 65-year-old, at this age your estimate is harder.

Hence, you should do more calculations on how much you need for retirement. Then, confirm if your current portfolio can fit your retirement plan.

However, if your financial portfolio is close to what you need in retirement, you might want to switch.

Thus, you can switch your asset allocation to be between stocks and bonds. That is to say, you can switch to 110 or 100 minus formula.

But, if you’re still far from your retirement plan. Then, you might want to start investing aggressively.

  • Evaluate your allocation more often when you’re near retirement.

The nearer your retirement the more you should stay at the top of your financial portfolio.

Due to you’ll need money soon, you might want to evaluate things and make the necessary changes.

Asset Allocation in Retirement

Now that you’re retired, you might want to still stay in the stock market. Thus, you might still have to go with the Asset Allocation Formulas.

However, you may feel safer with the 100 minus formula. This means at 70, you’ll have 30% in stock which is safe at that age.

Rules of Thumb- Your Mileage may vary

There is no exact asset allocation at any age. Hence, any formula you go for is based on theories built off the history of stocks and bonds.

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However, there is no guarantee that the future will be like the past. For this reason, you need to reevaluate your state throughout your lifetime.

Hence, opt if you want to make changes based on your investment performance or based on your asset.

Remain Diversified

This article is about asset allocation, but we will divert a little from our topic to clear you on this.

We might have not said the need to keep your portfolio diversified within each asset class.

Hence, if you have 70% of your savings in stock, you don’t have to put it in stock with only 2 or more companies.

However, most people should go for mutual funds or ETFs with 100s of stocks and bonds within the budget.

Thus, index funds are often the best way to invest, due to its varieties and low fees.

What of Cash?

You should invest most of your money rather than wait for when the stock market will increase.

Research has shown that it’s rather impossible to track the stock market. Hence, those who go in and out of the market are likely to get the worst returns.

Hence, the only cash you should have on you is the one for emergencies. Calculate your monthly expenses and save 3 to 6 month worth in a cash account.

Thus, this should be used for health issues and other emergencies. Also, you should have small money to be used to pay your bills and go about your daily life.


As stated earlier, there is no exact answer to asset allocation. But, we advise you to use the rule-of-thumb formula to get started.

Hence, you might experience a stressful life ahead if you don’t invest now with your earnings.

Having said that, leave a comment below if you have any questions. Thus, thanks for reading!