The original rule (put 110 minus your age percentage in stocks) was designed when life expectancy was 75 and bond yields were 5-6%. Current life expectancy: 83. Current 10-year yield: 3.8%. The formula needs updating. My version: 120 minus age for equity allocation, with international developed market exposure above 30%.
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The original rule (put 110 minus your age percentage in stocks) was designed when life expectancy was 75 and bond yields were 5-6%. Current life expectancy: 83. Current 10-year yield: 3.8%. The formula needs updating. My version: 120 minus age for equity allocation, with international developed market exposure above 30%.
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