Investment allocation by age.

Asset allocation rule of thumb: stocks % = 110 - age. 30-year-old: 80% stocks / 20% bonds. 60-year-old: 50/50. Adjusted for risk tolerance and time to retirement. Higher risk tolerance = more stocks. Longer to retirement = more stocks (time to ride volatility).

Age 35, risk tolerance 7/10 (above average). Base: 110 - 35 = 75% stocks. Risk adjustment: +10% (above average). Final: 85% stocks / 15% bonds. Adjusted upward for higher risk appetite. Suitable for someone with 25+ years to retirement willing to weather market volatility for higher long-term returns.

Allocation principles: stocks for growth (8-10% historic returns, 20-30% volatility). Bonds for stability (3-5% returns, 5-10% volatility). Younger = more stocks (recover from drops). Closer to retirement = more bonds (preserve capital). Critical: rebalance annually to maintain target allocation as one asset outperforms.

Run it with sensible defaults

Using age of 35 years, risk tolerance of 7, years to retirement of 25 years, the calculation works out to 85% / 15%. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Age, Risk Tolerance (1-10), and Years to Retirement — do not pull with equal force. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the winning option changes.

How the math works

Base stocks % = 110 - age (capped 20-95%). Risk adjustment = (risk - 5) × 5%. Final stocks % capped 10-95%. Bonds = 100 - stocks. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

Using this well

Treat the output as one point on a wider map. Run it three times — a pessimistic case, a central case, and a stretch case — and plan against the pessimistic one. That habit alone separates people who stick with an investment plan from those who bail at the first wobble.

What this doesn't capture

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. Treat the number as one scenario, not a forecast.