FinanceCalcs
Rule of 110 (100 / 120) Calculator
The Rule of 110 says subtract your age from 110 to get the percentage of your portfolio that should be in stocks — the remainder goes to bonds and fixed income. As you age, your allocation automatically becomes more conservative. Choose your preferred rule and see your recommended split.
The Rule of 100 is the traditional version; Rule of 110 accounts for longer life expectancy; Rule of 120 is used by those with higher risk tolerance or very long time horizons. All three are starting points, not prescriptions.
Recommended Allocation
Rule of 110 — Age 40
0% stocks / 0% bonds
Allocation Glide Path
| Age | Stocks | Bonds | $ Stocks | $ Bonds |
|---|
Rule Comparison at Your Age
| Rule | Stocks | Bonds | Best For |
|---|
“The old Rule of 100 was designed when life expectancy was shorter and bond yields were higher. With people living into their 90s and real yields near zero for much of the past decade, the Rule of 110 or 120 better reflects the need to maintain growth exposure well into retirement.”
— Modern portfolio planning consensus
Rule of 100, 110, and 120 explained
The Rule of 100 is the original version, widely taught for decades: subtract your age from 100 to get your stock allocation. At 40, you hold 60% stocks and 40% bonds. At 60, you hold 40% stocks. It was designed for an era of shorter retirements and higher bond yields that could sustain income.
The Rule of 110 is the modern standard. It accounts for longer life expectancy (average US life expectancy is now ~79, with many living into their late 80s and 90s) and lower bond yields. At 40, you hold 70% stocks; at 65 you hold 45%. Maintaining more stocks longer gives your portfolio greater growth potential over a potentially 25–30 year retirement.
The Rule of 120 is used by investors with high risk tolerance, very long time horizons, or significant other income (pension, Social Security, rental income) that reduces their dependence on portfolio withdrawals. At 40, you'd hold 80% stocks. It's aggressive but defensible for early retirees or those with substantial guaranteed income.
The risk adjustment layer in this calculator lets you shift ±10% based on your personal risk tolerance — useful since two 40-year-olds can have very different risk profiles depending on job security, family obligations, and temperament.
lightbulb Rule Comparison by Age
| Age | Rule of 100 | Rule of 110 | Rule of 120 |
|---|---|---|---|
| 30 | 70% stocks | 80% stocks | 90% stocks |
| 40 | 60% stocks | 70% stocks | 80% stocks |
| 50 | 50% stocks | 60% stocks | 70% stocks |
| 60 | 40% stocks | 50% stocks | 60% stocks |
| 70 | 30% stocks | 40% stocks | 50% stocks |
| 80 | 20% stocks | 30% stocks | 40% stocks |
Common Questions
Which rule should I use?
Rule of 110 is a reasonable default for most investors today. Use Rule of 100 if you're highly risk-averse, have no pension or Social Security, or are already in or near retirement. Use Rule of 120 if you have significant guaranteed income outside your portfolio, a very long time horizon, or high risk tolerance confirmed by surviving a major market downturn without panic-selling.
Do target-date funds use these rules?
Target-date funds follow a similar "glide path" concept but use proprietary models rather than simple subtraction rules. They also typically include more asset classes (international stocks, REITs, TIPS, cash) and adjust more dynamically. The Rule of 110 is a useful mental model; target-date funds operationalize something similar with more sophistication.
Should bonds really be the non-stock allocation?
The "bonds" bucket in these rules is better understood as "conservative/stable assets." In practice this often means a mix of government bonds, corporate bonds, TIPS, money market funds, CDs, and sometimes cash. The exact split within the fixed-income allocation depends on your yield needs, inflation expectations, and tax situation.
What about international stocks?
These rules don't specify domestic vs. international. Most financial planners recommend holding 20–40% of your stock allocation in international equities for diversification. This calculator includes a domestic/international split within the stock allocation as a starting point, though the right ratio is debated.
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