The Rule of 100

In the realm of personal finance, achieving the perfect balance between risk and security isn't easy to find. The Rule of 100 offers a foundational guideline to help investors of all ages navigate the complex world of investments.

This video from our Founder Daniel Rey explains the Rule of 100, a principle suggesting that investors should subtract their age from 100 to determine the percentage of their portfolio that should be invested in equities, with the remainder allocated to more secure assets. For example, a 48-year-old would have 52% of their portfolio in stocks or mutual funds, and the remaining 48% in bonds or other lower-risk investments. This guideline helps investors manage risk while aiming for growth, adjusting their investment approach as they age. As always, we can only stress the importance of working with a financial professional to customize this rule to individual financial goals, market conditions, and personal risk tolerance, ensuring a balanced and effective investment strategy.