Life Kit Want to protect your money? Diversify your investments
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Feb 24, 2026 
Amanda Holden, founder of Invested Development and author of How to Be a Rich Old Lady, offers clear financial literacy and investing know-how. She covers balancing stocks and bonds, how age should influence your mix, the Rule of 120, international and small‑cap exposure, REITs for real estate, and when to keep investing simple.
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Use The Rule Of 120 For Stock Allocation
- Use the Rule of 120 to set stock vs bond allocation by subtracting your age from 120 to get your target stock percentage.
- Example: at 30 years old 120−30 = 90% stocks and 10% bonds as a simple starting allocation.
Risk And Return Are Linked
- Risk and return are two sides of the same coin: more stock exposure raises expected returns and also downside risk.
- Amanda emphasizes choosing a mix you can stick with, because staying invested matters more than a precise ratio.
Pick An Allocation You Can Stick With
- Start with the 120−age allocation, then adjust only if it makes you uncomfortable and you won't stick with it during downturns.
- Prioritize an allocation you can maintain even when markets fall to avoid bad timing decisions.