It sounds like an old parlor trick:
Subtract your age from 100—and the resulting number is the percentage of your retirement savings to put into stocks. The remainder (voila!) goes into bonds!
By that logic, a 40-year-old would put 40% of her retirement savings into a bond fund and 60% into equities. But if you follow that old formula now and “invest your age,” you’re likely to run out of money when you retire.
To read the full piece, please follow this link:
http://www.dailyworth.com/posts/715-Ditch-the-Age-Old-Retirement-Equation
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