A simple, age-based guide to how much to hold in stocks versus bonds.
An asset allocation calculator suggests a starting split between stocks and bonds based on your age and risk tolerance, using a common age-based rule of thumb.
Research consistently finds that the mix between stocks and bonds drives most of a portfolio's risk and long-run return, more than picking individual investments. Getting the split roughly right for your time horizon and stomach for volatility is the highest-leverage decision, which is why a simple starting framework is useful.
A familiar rule holds roughly '110 minus your age' in stocks, tilting toward bonds as retirement nears and your capacity to recover from losses shrinks. Risk tolerance shifts it: someone comfortable with volatility can hold more stocks, a nervous investor fewer. Treat the output as a starting point to refine, not a personalized recommendation.
A common rule is roughly 110 minus your age in stocks, with the rest in bonds, more stocks when you're young, fewer as retirement nears. Adjust for your risk tolerance.
The stock/bond mix drives most of a portfolio's risk and return over time, more than individual investment selection.
No, it's a general starting framework. Your goals, other assets, and risk capacity should refine it, ideally with a professional.
See the exact formula and a worked example on our methodology page.