Asset Allocation by Age Calculator
A starting allocation from age, horizon and how you behave in a fall. The age rules are a heuristic and nothing more, so the page shows what the rule gave before the adjustment and what moved it.
Also called: asset allocation by age, equity debt split.
75% equity, 20% debt and 5% gold at age 35, with 25 years to retirement. The 110 minus age rule gives 75% equity at 35. It is a heuristic and not a finding. Your stated tolerance left the rule unchanged.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
Allocation
Suggested allocation
| Asset | Share | Amount | Role |
|---|---|---|---|
| Equity | 75% | $750,000 | Growth, and the source of the volatility |
| Debt | 20% | $200,000 | Stability and the rebalancing reserve |
| Gold | 5% | $50,000 | Diversifier, not a growth asset |
| Cash | 0% | $0 | Held separately from the invested portfolio |
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for United States change on a published schedule; the effective date is shown on every rule-based tool.
How this is calculated
The age rules encode one true idea, that a longer horizon can absorb more volatility, and they encode it crudely. Age is a proxy for horizon, so where the retirement age given implies a different horizon than the age alone suggests, the page says so. The tolerance adjustment matters more than the rule: an allocation you abandon in a fall is worse than a smaller one you hold, because selling in a drawdown converts a paper loss into a real one. The gold sleeve is a small diversifier here and not a growth asset.
the rule sets a starting equity share from age alone, and the adjustment moves it toward what you can actually hold through a fall- E
- Equity share
- k
- Rule constant, 100, 110 or 120
Method and limits
What it assumes
- A long-only portfolio of equity, debt and gold, with an emergency fund held separately.
What it deliberately does not model
- Age rules are heuristics with no theoretical basis, and they ignore income stability, existing wealth, dependants and liabilities.
- This is a starting point for a conversation with an adviser, not a recommendation.
Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator
Frequently asked questions
- Is 110 minus age a real rule?
- It is a rule of thumb that gained ground as life expectancy rose and the older 100 minus age looked too conservative. Neither has a theoretical basis. Both are starting points.
- Why does my reaction to a fall change the answer?
- Because an allocation you abandon during a drawdown is worse than a smaller one you hold. Selling in a fall converts a paper loss into a realised one.