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Finance Fridays #5: Asset Allocation

Ever wondered why financial experts always say, “don't put all your eggs in one basket”? That’s the core philosophy behind Asset Allocation! It’s simply the way you split your total investment money across different buckets like equity (mainly stocks) and fixed income (mainly government bills and bonds).

A classic shortcut to figure this out is the 100- Age Rule: subtract your current age from 100, and that’s the percentage of your money you should consider keeping in equity. The rest goes into safer, fixed income options.

But remember, the right mix isn't set in stone. Your perfect investment formula depends entirely on your personal risk appetite, your financial goals, and how long you plan to keep your money invested.