Conventional wisdom would have you reduce the percentage of your nest egg you invest in stocks over the course of your retirement. The old rule of thumb went something like this: Subtract your age from 100 and that’s what percent to invest in stocks.
So, if you’re age 65, you’d invest 35% (100 minus 65) of your nest egg in stocks. And if you’re 80, you’d invest 20% (100 minus 80) of your nest egg in stocks. The us of this formula is widespread.
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