§ 01
| When you need the money | A sensible lean | Why |
|---|---|---|
| Within 1-2 years | Mostly cash / short-term bonds | No time to recover from a 20-30% stock drop |
| 3-10 years | A blend, e.g. 40-60% stocks | Some growth, but cushioned for the ride |
| 10+ years | Mostly stocks | Time to ride out crashes while growth compounds |
§ 02
Rough stock % = years until you need the money x 7, capped between 10% and 90%
§ 03
A popular rule of thumb is '110 minus your age in stocks' -- a 30-year-old lands near 80% stocks, a 60-year-old near 50%. Older versions say '100 minus age' and more aggressive ones '120 minus age'. The exact number matters far less than the principle: the longer your horizon, the more stocks you can hold, because you have time to recover from the drops that always come.
§ 04
Open the **Portfolio** view and estimate your own split: what fraction sits in stock funds vs bonds vs cash? Compare it to your time horizon for that money.
§ 05
§ 06
You're 28 and investing in a retirement account you won't touch for about 35 years. What's a sensible asset allocation?
Five questions · AI feedback
Sit with the ideas.
Two investors each invest $10,000. One needs it in 18 months for a car; the other won't touch it for 30 years. Should they hold the same asset allocation?
Why: