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VIDEO: Doodles, Hawaiian Shirts and Portfolio Allocation

Take 100, subtract your age, get the percentage of equities you should hold


Here’s a simple rule of thumb for the portion of stocks vs. lower-risk investments in your portfolio… complete with a vintage Hawaiian shirt and explanatory doodles.

The text version for those of you too impatient for the white board shenanigans is that as you age, your allocation of high risk investments like stocks should reduce in comparison to lower risk investments like bonds or CDs. Everyone’s needs are different but a simple rule of thumb is to take 100 and subtract your age from it. That number is the percentage of your portfolio that should be in equities.

Enjoy the open source audio, “On The Beach At Waikiki” performed by The Slap Key Kings.

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