Coffee Can Newsletter – August, 2018

Most of us would have come across the rule of “100 minus your age” as the way to determine your investment allocation to equities, i.e., a 25-year-old individual should invest 75% of his wealth in equities and 25% in debt. On the other hand, a 50-year-old individual should invest no more than 50% of his wealth in equities. The rationale behind this rule is that ‘younger investors can afford to take more risk than the older ones’.