How much equity vs bonds — three glide paths.
Three classic rules for splitting a portfolio between stocks and bonds based on your age. Move the inputs to see expected return, volatility, and Sharpe across all three for your situation.
Built and reviewed by Stephen Omukoko Okoth
Mathematical Economist · ex-Morgan Stanley FI · Equilar
Inputs
You & your assumptions
Verdict
At age 35, three frameworks suggest different mixes.
Pick the one whose volatility you can stomach without selling at lows.
Higher equity = higher expected return AND larger drawdowns. The right allocation is the one where, in a 40% bear market, you stay invested.
Result
Three strategies
Age-in-bonds (conservative)
65% equity / 35% bonds
Exp return 6.6% • Stdev 10.8% • Sharpe 0.24
110 − age (balanced)
75% equity / 25% bonds
Exp return 7.0% • Stdev 12.2% • Sharpe 0.25
120 − age (aggressive)
85% equity / 15% bonds
Exp return 7.4% • Stdev 13.7% • Sharpe 0.25
Glide paths
Equity allocation by age
Common questions
Is there a 'right' allocation?
There's no single right answer — only a right answer for you. The standard advice ranges from 'age in bonds' (conservative) to '120 minus age' (aggressive). Pick one that lets you stay invested through a 40% drawdown without selling.
What's the 110/120 rule?
Equity % = 110 (or 120) − age. So a 35-year-old gets 75% equity (110 rule) or 85% (120 rule). The 'rule' assumes longer horizons and bigger budgets for volatility — popular since global rates fell after 2008.
How often should I rebalance?
Annually, or when allocations drift more than 5% off target. More frequent rebalancing has tiny benefits and meaningful tax/transaction costs in taxable accounts. In tax-advantaged accounts, annual is fine.
Should I include real estate, gold, or crypto?
If you have meaningful holdings, yes — categorize them. Real estate often correlates with both bonds (income) and equity (price). Crypto is high-risk; size it small and treat as venture-style. The tool models the simplified two-asset case for clarity.