110-minus-age rule calculator
The 110-minus-age rule suggests investing a percentage equal to 110 minus your age in stocks, with the rest in bonds. At 40, that's 70% stocks and 30% bonds. It's a starting point that should be adjusted for time horizon, income stability and your real tolerance for downturns.
Formula: Stocks (%) = 110 − age. Bonds (%) = 100 − stocks.
110-minus-age rule calculator
Enter your age and the amount you're investing to see the split this rule of thumb suggests.
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How to use it
- Enter your age. The starting point of the split.
- Adjust for horizon. If you won't touch the money for 15+ years, you can push the stock share higher.
- Adjust for stability. Variable income or self-employment: trim a few points off stocks.
- Rebalance once a year. Returning to your target allocation is what actually keeps risk in check.
Why 110 and not 100
The classic version was 100 minus age, from a time when life expectancy and bond yields were different. With retirements that can last 25–30 years, many planners now use 110 or even 120 to avoid falling short of long-term returns.
- 100 minus age: conservative
- 110 minus age: current standard
- 120 minus age: aggressive, only with a very long horizon
What the rule doesn't see
It doesn't know about your emergency fund, any high-interest debt, or how you reacted the last time the market fell 30%. Use it as a starting point and check the result against a risk profile test before locking in your allocation.
Frequently asked questions
- Does this work with index funds?
- Yes. The split applies to your whole portfolio — for example, a global index fund for the stock portion and an aggregate bond fund for the rest.
- Should I change the split every year?
- Reviewing it annually when you rebalance is enough. A one-point-per-year shift doesn't justify trading more often.