The Rule of 100

How much of your portfolio should be in risky investments?

You may want to estimate the answer to this question using the Rule of 100.

The Rule of 100 uses your age to help you decide how much of your portfolio should be in riskier investments. Simply subtract your age from the number 100, and what’s left is the percentage of money that should be in those types of investments.

For example, if you’re 60 years old, your Rule of 100 calculation would be:

100 - 60 (your age) = 40

So you should keep 60% of your money safe in more secure accounts, and only 40% of it should be put at risk in the market.

How the Rule of 100 Could Impact You

During your younger years, your accounts can withstand the ups and downs of the stock market. If a market correction occurs, your account can typically bounce back. However, as you get older, you lose this luxury. The less time your account has to recoup, the more conservative you should be with your investments.

We work with clients on both conservative and more risky investments and can help you balance your portfolio to find the strategy that suits you best. Reach out to us to schedule a one-on-one, no-cost, no-obligation meeting.

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