Asset Allocation
How much equity vs bonds — three glide paths.
Three age-based allocation rules — expected return, volatility, and Sharpe, side by side.
Built and reviewed by LeadAfrik Research
Data-grounded analysis on African economies
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
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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.