Yesterday we talked in general about portfolio allocation, particularly as it pertained to stocks. It can be confusing to decide what to do with an investment portfolio, especially if you are new to the idea of investing.  Two simple rules to help with the decision are: the 100- Age Rule and the 120- Age Rule.  Let’s look at some of the ideas behind each rule to help you decide your best course of action in setting up your portfolio.

100 Minus Age Rule

The term stock allocation sounds rather imposing. In reality, it represents a simple question that we all need to answer: What portion of our portfolio should be in stocks versus other investments?

Why Stocks?