At 40, you’re standing at the crossroads of financial opportunity and responsibility. Your career is in full swing, your income is likely to be at its peak, and you’re probably thinking about long-term financial goals like retirement or funding your children’s education.
But here’s the big question:
Many individuals at this stage of life find themselves struggling with the delicate balance of managing risk while still seeking solid returns. With market fluctuations and endless investment choices like equities, mutual funds, debt instruments, and gold, deciding on the right asset allocation can be overwhelming. You want growth, but you also want stability. How do you strike the right balance?
For someone aged 40, following a widely accepted rule of thumb can simplify asset allocation decisions:
100 – Your Age = Equity Allocation.
That means, at 40, 60% of your investments should be in equity, and 40% in debt.
