Traditional Investment Allocation Rule

When reviewing ones investment plans, the traditional rule was to subtract one's age from 100. The resulting number was the percent of investments that should be in "equities" or stock..the remaining in bonds. So, If you are 70 yrs old, the proper amount is 30% in stock and 70% in bonds. Some current investment computer programs tout that one can handle more stocks, but their success has not been demonstrated over time. Likewise, the allocation in bonds has been questioned by many who lived through the 1970's and took some severe hits to their bonds when interest rates skyrocketed under Pres. Jimmy Carter...Cash is also nice....