Shortcuts To Asset Allocation

Did you know that there are tools which allows you to get a suitable asset allocation in just one minute ?

Some big investors follow the “Rule of 100” to sort of determine an asset allocation.

The “Rule of 100” is all about subtracting your age from 100 to determine the level of stock exposure within your portfolio. Nothing more advanced than this. However if you look at the increases in life expectancy over recent years you will see that some advisors believe subtracting from 110 or 120 yields a more fitting measure today as we talk about it.

Another way you can go about it is to buy a target-date fund. A target-date fund is a type of mutual fund which holds  both stocks and bonds at a ratio designed to suit your length goal.

The negative side of both these methods is that the allocation is the same for everyone no matter the age or time goal. 

You Can Find My Investing Portfolio Here

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s