Asset Allocation by Age: The Glide Path That Actually Works

The old rule was 'bond percentage = your age'. With life expectancy at 80+ and bonds yielding so-so, the new math is different.

This used to be a back-of-the-envelope job. Now it is one tap, but the logic has not changed. The old rule was 'bond percentage = your age'. With life expectancy at 80+ and bonds yielding so-so, the new math is different.

The updated rule

Stocks % = 110 − age. So a 30-year-old holds 80% stocks; a 60-year-old holds 50%.

Why glide down at all

Sequence-of-returns risk in early retirement can permanently damage a portfolio. Bonds dampen that risk.

The simple three-fund portfolio

US total market + international total market + total bond market. Rebalance once a year.

Pro tips

  • Target-date funds do the glide path automatically — perfectly fine for 401(k)s.
  • Hold international equities at ~30% of stock allocation; home bias is the silent tax.

Frequently asked questions

Should retirees hold any stocks? Yes — 40–60% even in retirement. Inflation is the bigger risk over 30 years than market drops.

What about crypto? Treat it like venture capital — under 5%, money you can afford to lose entirely.

Run your own numbers before you trust a rule of thumb. Two minutes saves a lot of regret.

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