Guide

Asset Allocation by Age: Stock & Bond Mix for Your 20s Through 70s

Updated September 21, 2026 · 9 min read · Independent — we never recommend specific funds or products

Quick answer

A common starting point is to hold roughly (110 − your age)% in stocks and the rest in bonds and cash: about 80% stocks at 30, 60% at 50, and 40% at 70. Published ranges by decade run from around 80–95% stocks in your 20s down to 30–50% from 70 onward. Treat these as starting points — your time horizon and your ability to stomach losses matter more than your birthday.

Should a 25-year-old and a 65-year-old hold the same portfolio? Almost nobody thinks so — but there is no official age-by-age formula either. What exists is a set of widely used ranges and rules of thumb, which this guide lays out along with an honest account of where they work and where they mislead.

Typical asset allocation by decade

The ranges below are synthesized from guidance published by several major financial-education sites and from the age-based rules in the next section. They describe the common range for a typical long-term retirement saver — not a prescription.

Age	Stocks	Bonds & cash	Rule of 110 at midpoint
Your 20s	80–95%	5–20%	85% stocks at age 25
Your 30s	70–90%	10–30%	75% stocks at age 35
Your 40s	60–80%	20–40%	65% stocks at age 45
Your 50s	50–70%	30–50%	55% stocks at age 55
Your 60s	40–60%	40–60%	45% stocks at age 65
70 and over	30–50%	50–70%	35% stocks at age 75

Notice that the ranges are wide and overlap. That is the point: two healthy, sensible 40-year-olds can legitimately sit 20 percentage points apart, because one has a pension and a steady job and the other is self-employed with irregular income.

The age-based rules of thumb

Rule of 100: stocks % = 100 − age. Simple and conservative. At 40, hold 60% stocks.
Rule of 110: stocks % = 110 − age. A common modern update for longer lifespans. At 40, hold 70%.
Rule of 120: stocks % = 120 − age. The growth-leaning version. At 40, hold 80%.

Try all three side by side with our rule of 110 calculator, which also explains where they break down.

What changes in each decade

Your 20s: maximize the runway

Decades until retirement means the biggest risk is not a market drop — it is not having enough growth. Contributions are small relative to what you will earn later, so even a 30% drop costs little in absolute terms. The main task is building the habit of investing regularly and keeping an emergency fund in cash so a surprise expense never forces you to sell.

Your 30s: growth with a cushion

Salaries usually rise and so do obligations — a home, children. Many investors stay growth-heavy for retirement money but hold short-term goals (a house deposit, education) in a more conservative mix, because those goals have earlier due dates than retirement does.

Your 40s: the peak-contribution decade

Balances are now large enough that a market drop is a real dollar amount. Retirement is still 15–25 years away, so most people remain majority-stocks while gradually adding bonds. This is also when a rebalancing habit pays for itself.

Your 50s: start managing sequence risk

Sequence-of-returns risk is the danger that a severe market fall lands just before or just after you begin withdrawing — you would be selling depressed assets to fund living costs, and those losses never recover. The traditional defense is to hold more bonds and cash as retirement nears, so several years of spending are not exposed to a stock-market crash.

Your 60s and beyond: balance income, growth, and inflation

Retirement can last 25–30 years, so a portfolio that is too conservative risks running out or losing purchasing power to inflation. Many retirees therefore keep a meaningful stock allocation even in their 70s, funding near-term spending from bonds and cash. The ranges shift toward stability, but not to zero growth.

Why time horizon beats age

Age is a stand-in for the question that actually matters: when will you need this money? A 28-year-old investing for a goal 30 years away and a 58-year-old with the same 30-year horizon can hold the same growth-oriented mix. A 45-year-old saving for a house purchase in two years should hold a conservative one. And two people of the same age can differ enormously in how much loss they can absorb — which is why our calculator asks about your horizon, your reaction to a 20% drop, your experience, and your income stability, then places you in one of five profiles:

Risk profile	Equities at a 15+ year horizon
conservative	20%
Moderately conservative	35%
balanced	55%
Growth-oriented	70%
aggressive	85%

A worked glide path (from our model)

The table below shows what our calculator recommends for the Balanced profile as the goal date approaches. It is the same logic as a target-date fund, made explicit: growth-oriented while you have time, then gliding toward capital preservation. Figures are computed directly from the calculator's engine, rounded to whole percentages.

Years to goal	Equities	Bonds	Real estate + gold	Cash
30 years	55%	30%	13%	2%
20 years	55%	30%	13%	2%
15 years	55%	30%	13%	2%
10 years	45%	31%	12%	12%
7 years	30%	33%	11%	26%
5 years	20%	34%	11%	35%
3 years	14%	34%	10%	42%
1 year	10%	35%	10%	45%
At the goal date	10%	35%	10%	45%

Your numbers will differ with your own answers. Run the calculator to see your personal glide path charted year by year, or read the methodology for how the curve is built.

For retirement accounts specifically, see 401(k) asset allocation; for the underlying concepts, what is asset allocation.

Frequently asked questions

What is a good asset allocation for a 30-year-old?

Many published ranges put a 30-year-old at roughly 70–90% stocks and 10–30% bonds and cash, and the rule of 110 points to about 80% stocks. Someone with 30+ years until retirement, stable income, and the temperament to sit through downturns can sit at the higher end; someone saving for a house in three years should hold far less in stocks regardless of age.

What is a good asset allocation for a 50-year-old?

Typical ranges are 50–70% stocks, with the rule of 110 pointing to about 60%. At 50 you still have a long investing runway if retirement is 15+ years away, but sequence-of-returns risk — a big loss just before or after you start withdrawing — begins to matter, so many people begin shifting gradually toward bonds and cash.

What is a good asset allocation for a 60-year-old?

Common ranges are 40–60% stocks, with the rule of 110 pointing to about 50%. If you are retiring soon, the key question is how many years of spending you would want covered by stable assets so you are never forced to sell stocks in a downturn.

Is the “100 minus age” rule outdated?

Many planners now prefer 110 or 120 minus age because people live longer and bond yields have often been lower than in past decades, so a portfolio needs more growth to last. The rule is still only a starting point: it ignores your goals, income, pensions, and risk tolerance.

Should I hold any bonds in my 20s?

It depends on your goals and temperament rather than your age alone. Some investors in their 20s hold 100% stocks for long-term money; others keep a bond or cash slice for emergencies or to make volatility easier to live with. The bond slice is useful mainly if it stops you from selling stocks at the worst moment.

Why does this calculator ask for years, not my age?

Years until you need the money is the more precise input. A 28-year-old and a 58-year-old both investing for a goal 30 years away can hold the same growth-oriented mix; a 45-year-old saving for a house in two years should hold a conservative one. Age is a proxy for time horizon, and the calculator uses the real thing.

Sources & further reading

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This guide is general education, not financial, investment, tax, or legal advice, and it does not recommend any specific security, fund, or product. Example percentages are illustrations, not recommendations for you. Past performance does not guarantee future results. Consider speaking with a licensed professional before making investment decisions. See ourmethodology anddisclaimer.