Age Equals Asset Allocation

Take 100, subtract your age, and thats the

percent you should have in stocks.
Should age by itself be enough to dictate your portfolio?
A hypothetical example: Two men, both age 75
Boba widower with an adult son and no living parents.
Needs income from his portfolio for living expenses.
Jimmarried and has a very long life expectancy. He has
plenty of income sources and his portfolio is a safety net for
emergencies.
Same age, but much different situationsthey will
need different portfolios with different structures.

A portfolios benchmark indicates a desired

level of performance, and helps determine asset
allocation.
The following can help to determine a benchmark:
Time Horizonhow long do you need your money to last?
Expected Returndo you need to preserve, or do you have
room to grow?
Cash Flow Needswill you require a regular income from
your portfolio?