Ask The Hammer – The 100 Minus My Age Rule

Key Takeaways

• Reject the '100 minus your age' rule as generic advice—your stock/bond allocation should be based on whether you need portfolio income, want to leave an inheritance, or have sufficient other income sources, not just your age
• Define your primary goal first: Are you protecting against running out of money, maximizing legacy wealth, or something else? This determines how much investment risk makes sense for you
• If you have sufficient guaranteed income (Social Security, pensions, rental properties) and ample savings, you may not need stock market risk at all—conversely, a longer retirement horizon may require more equity exposure than traditional age-based rules suggest
• Consider a one-time professional portfolio review (a 'checkup') even if you manage your money yourself—it can validate your strategy and provide an objective voice to counteract emotional decision-making during market ups and downs
• Recognize that emotional discipline is critical: removing yourself from active investment decisions during market volatility helps you stay the course and achieve your long-term goals rather than reacting to short-term fear or greed