Rule of 110 Asset Allocation
Stocks vs bonds split based on age.
Rule explained
Subtract your age from 110; that's your stock allocation. Younger investors hold more stocks; closer to retirement, more bonds. The Rule of 100 is older and more conservative; the Rule of 110 (or even 120) reflects longer life expectancy and lower bond yields.
Common variations
- Rule of 100: traditional, more bonds. Used to be the default.
- Rule of 110: modern default for most major brokerages.
- Rule of 120: aggressive, popular with FIRE community.
- Target-date funds: similar curve, smoother glide path.
These are rules of thumb, not gospel. Personal risk tolerance, time to retirement, and other income sources matter. Vanguard's target-date funds (a useful comparison) hold ~90% stocks at age 25, dropping to ~50% at age 65.
About
Subtract your age from 110 to get your stock allocation; the rest goes in bonds and cash. Younger investors hold more stocks, closer to retirement more bonds. Toggle to the older Rule of 100 for a more conservative split.
How to use
- Enter your age.
- Read stock and bond targets.
FAQ
Should I really hold this much in bonds?+
Rules of thumb are starting points. With longer life expectancy and lower bond yields, many advisers now recommend Rule of 110 or 120. Personal risk tolerance and other income sources matter more than the formula.