A strategic approach to investing requires balancing risk and reward throughout your life. Discover age-based investing strategies, glide paths, and build model portfolios using real ETF data.
Adjust the slider to see how asset allocation shifts based on age. This tool uses a modified 110-minus-age rule, incorporating international exposure and alternative assets.
A diversified portfolio requires building blocks. Below is real, current data for benchmark ETFs used to construct age-based asset allocations.
| Ticker | Name | Asset Class | Price | Yield | Exp. Ratio |
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A common rule of thumb is the 100-minus-age rule, which suggests subtracting your age from 100 to determine the percentage of your portfolio that should be allocated to equities. The remainder is typically allocated to fixed-income assets like bonds to reduce risk as you near retirement.
The 100-minus-age rule is a simplified portfolio allocation strategy. By subtracting your current age from 100, you find the target percentage for stock investments. For example, a 30-year-old would hold 70% in stocks and 30% in bonds.
Investors in their 20s have a higher risk capacity due to a longer time horizon, allowing for a higher allocation to growth-oriented assets like stocks (e.g., 80-90%). In your 60s, capital preservation becomes paramount, so fixed-income allocations usually increase to 40-60%.
Target-date funds automatically adjust your asset allocation over time based on an expected retirement year. They start with a stock-heavy glide path and gradually shift toward more conservative bond allocations as the target year approaches.
Yes, adding alternative assets like real estate (REITs) or commodities (gold) can improve diversification and act as an inflation hedge. Typically, these are allocated in small portions (5-10%) alongside core equity and bond holdings.
Westmount Fundamentals. "Asset Allocation by Age: Portfolios." westmountfundamentals.com/guide-asset-allocation-by-age, 2026.