Your investment mix—often called “asset allocation” can play a huge role in your long-term returns and risk level. So how much should you have in stocks vs. bonds?
It Depends on Three Key Factors:
- Your Age
The older you are, the more conservative your portfolio might be, but you still need some growth to beat inflation. - Your Time Horizon
If you won’t need the money for 10+ years, you may be able to handle more stock exposure. - Your Risk Tolerance
Can you stomach market swings without panicking? If not, you may benefit from a more balanced or conservative allocation.
A Simple Rule of Thumb:
Some use the formula:
100 minus your age = % of your portfolio in stocks
It’s not perfect, but it’s a good starting point. A 65-year-old might aim for 35–50% in equities, depending on income needs and overall risk profile.
Your investment mix should reflect your goals—not someone else’s rule of thumb. We’re here to help you find the right balance for your retirement.
**All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Asset allocation is an investment strategy that will not guarantee a profit or protect you from loss.The opinions contained in this material are those of the author, and not a recommendation or solicitation to buy or sell investment products.
