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[FinanceDude]

Quote:

Originally Posted by MasterBlaster I don't know if I would call that a "good" rule of thumb. Some people subtract their age from 110 or 120 to get their bond allocation. The 100 rule is very conservative.

So, back in 1999, everyone was 0-10 years old...........

[youbet]

Quote:

Originally Posted by MasterBlaster I don't know if I would call that a "good" rule of thumb. Some people subtract their age from 110 or 120 to get their bond allocation. The 100 rule is very conservative.

And 110 or 120 would be even more conservative (greater allocation to fixed). No?

[MasterBlaster]

Parden my mis-articulation. It should have read ...

Some people subtract their age from 110 or 120 to get their stock allocation.

[youbet]

Quote:

Originally Posted by MasterBlaster Parden my mis-articulation. It should have read ... Some people subtract their age from 110 or 120 to get their stock allocation.

No problem. Personally, I never have a problem with mis-articulation. I just screw up what I say.

[Spanky]

Another way to determine bond allocation is to start with a percentage to your age and adjust it relative to your risk tolerance. For example, if your are 40 years of age, your initial bond allocation is 40%. Add or subtract to/from the 40% based on your risk tolerance.

[Salaryman]

Quote:

Originally Posted by Spanky Another way to determine bond allocation is to start with a percentage to your age and adjust it relative to your risk tolerance. For example, if your are 40 years of age, your initial bond allocation is 40%. Add or subtract to/from the 40% based on your risk tolerance.

All being said, the right percentage of equity investment in one's portfolio is where one can feel comfortable with and be able to sleep at night. There really isn't a single correct answer to achieving the endgoal.