Asset Allocation CalculatorGuide
Rule of 100, 110 and 120: How Much Should You Hold in Stocks?
Updated · 6 min read · Independent — we never recommend specific funds or products
Quick answer
The rule of 110 says: stock percentage = 110 − your age, with the rest in bonds and other conservative assets. At 40 that is 70% stocks / 30% bonds. The rule of 100 (100 − age) is more conservative and the rule of 120 (120 − age) more growth-oriented. Use the calculator below to compare all three for your age.
Rules of thumb are popular because they turn a fuzzy question — “how much should I have in stocks?” — into arithmetic. The age-based rules are the most common. Enter your age below to see what each version suggests.
Rule of 110 calculator
Rule of 100 / 110 / 120 by age
| Age | Rule of 100 (stocks) | Rule of 110 (stocks) | Rule of 120 (stocks) |
|---|---|---|---|
| 25 | 75% / 25% | 85% / 15% | 95% / 5% |
| 30 | 70% / 30% | 80% / 20% | 90% / 10% |
| 35 | 65% / 35% | 75% / 25% | 85% / 15% |
| 40 | 60% / 40% | 70% / 30% | 80% / 20% |
| 45 | 55% / 45% | 65% / 35% | 75% / 25% |
| 50 | 50% / 50% | 60% / 40% | 70% / 30% |
| 55 | 45% / 55% | 55% / 45% | 65% / 35% |
| 60 | 40% / 60% | 50% / 50% | 60% / 40% |
| 65 | 35% / 65% | 45% / 55% | 55% / 45% |
| 70 | 30% / 70% | 40% / 60% | 50% / 50% |
| 75 | 25% / 75% | 35% / 65% | 45% / 55% |
Format: stocks % / bonds & other %. The rule of 120 is capped at 100% stocks.
Why 110 and 120 replaced 100
The rule of 100 is the older, more conservative version. Two things pushed many planners toward 110 or 120:
- Longer lives. A retirement that may last 25–30 years needs more growth to keep pace with inflation.
- Lower bond yields, for long stretches. When bonds pay less, a bond-heavy portfolio has less growth to draw on, so the stock share of an age-appropriate portfolio tends to rise.
The choice among 100, 110 and 120 is really a choice about risk appetite: a 120 rule is essentially saying “I am comfortable with bigger swings in exchange for more growth.”
Where the rule breaks down
- Age is a proxy, not the input that matters. What matters is when you need the money. A 45-year-old saving for a house in two years should not hold 65% stocks for that goal just because the rule says so.
- It ignores your ability to take risk. A 40-year-old with a secure pension and a 40-year-old freelancer with no safety net get the same answer.
- It ignores willingness. A mix you would abandon in a crash is worse than a more modest one you would stick with.
- “The rest” is undefined. Bonds, cash, real estate, and gold all behave differently, and the rule says nothing about the split.
- It's a single dial. It cannot represent different goals with different deadlines held in the same portfolio.
Going beyond a rule of thumb
The natural next step is to replace age with years until you need the money, then layer in your risk answers. That is exactly what our free asset allocation calculator does: it converts your goal, horizon, reaction to a 20% drop, experience and income stability into one of five profiles, then shows how the mix should glide toward safety as your date approaches. To see the ranges in context, read asset allocation by age, and to understand the fundamentals, what is asset allocation.
Frequently asked questions
What is the rule of 110 in investing?
The rule of 110 says to subtract your age from 110 to get the percentage of your portfolio to hold in stocks, with the remainder in bonds and other conservative assets. For example, at 50 you would hold 60% in stocks (110 − 50) and 40% in bonds.
What is the difference between the rule of 100, 110 and 120?
They are the same formula with a different starting number. 100 is the most conservative, 120 the most growth-oriented. The higher versions exist because people live longer and bond yields have often been lower than in the past, so a portfolio needs more stock exposure to last through retirement.
Is the rule of 110 a good rule?
It is a reasonable starting point and easy to remember, but it ignores your goals, income stability, pensions and other assets, and how you would react to a large loss. It is best used as a sanity check against a more personalized allocation, not as the allocation itself.
What should the rest of my portfolio be if not stocks?
The rule leaves the remainder undefined. Most people fill it with bonds and cash; some add real estate and gold for diversification. Our five-asset-class calculator splits the non-stock portion for you.
Does the rule of 110 work for retirees?
It gives about 45% stocks at 65 and 35% at 75, which many retirees find sensible. But retirees with large guaranteed income (pensions, annuities) can often afford more stock exposure, while those relying entirely on their portfolio may want more stability in the first years of withdrawals.
Sources & further reading
Keep learning
- What Is Asset Allocation? A Plain-English GuideThe five asset classes, why the mix matters more than picking winners, and how to choose yours.
- Asset Allocation by Age: Stock & Bond Mix for Your 20s Through 70sTypical stock/bond ranges for every decade, plus a glide path table computed from our own model.
- The 60/40 Portfolio Explained: History, Pros, Cons & AlternativesWhy 60/40 became the default, what 2022 taught us, and when a different mix fits better.
- 401(k) Asset Allocation: How to Split Your Retirement AccountTarget-date fund or DIY? Sample splits by years to retirement and the mistakes to avoid.
- How Often Should You Rebalance Your Portfolio? Rules, Thresholds & a Worked ExampleCalendar vs threshold rebalancing, the 5% rule, and a worked example with real numbers.
- Asset Allocation in India: Equity, Debt & Gold by Age (Including NPS, EPF and PPF)Equity, debt and gold by age — and how EPF, PPF and NPS count toward your mix.
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.