TO THOSE WHO ARE COUNTING THE YER BEFORE RETIREMENT AND ARE WONDERING HOW TO INVEST IN AN IRA OR 401K:
Asset Allocation by Age
This one really isn’t a math trick, so much as it is a rule of thumb...
Don’t have a financial planner to walk you through asset allocation? A simple way to find out is to subtract your age from the number 120, the number remaining is the percentage of your portfolio that should be in stocks.
For instance, if you’re 50, you should be keeping 70% of your holdings in stocks with the remaining 30 percent in fixed income products.
thank you! I am going to keep these handy!