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Tanya [424]
2 years ago
13

How differently would you allocate assets between an elderly couple and a young entrepreneur?

Business
1 answer:
vova2212 [387]2 years ago
8 0

According to  conventional wisdom regarding asset allocation by age, you should hold a proportion of stocks equal to 100 minus your age. Therefore, if you are 40 years old, 60% of your portfolio should consist of equity. Criteria might be better changed to 110 minus your age or 120 minus your age because life expectancy increasing.

By deducting your present age from 100, you can utilize  rule of thumb to determine your asset allocation. It implies that as you get older, you should shift away from equity funds and toward debt funds and fixed income assets in your asset allocation.

To learn more about asset allocation, click here

brainly.com/question/28025267

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