Life Kit: Money 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, shares investing and diversification know-how. She covers stock vs bond mixes, how allocation should shift with age, and choices for short-term goals. She also talks about international and small-cap exposure, REITs, and simple strategies like target-date funds.
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Use The Rule Of 120 For Stock Allocation
- Use the Rule of 120 to set a stock-bond split by calculating 120 minus your age for your stock allocation.
- Amanda Holden gives the example: if you're 30 then 120−30 = 90% stocks and 10% bonds as a simple starting point.
Risk And Return Are Two Sides Of The Same Coin
- Stocks and bonds sit on opposite ends of the risk-return trade-off so shifting toward stocks raises potential returns and shifting toward bonds lowers downside risk.
- Amanda Holden emphasizes that higher risk gives a chance at higher returns, while bonds and cash provide predictability and stability.
Shift Allocation As Retirement Nears
- Shift your allocation toward stocks when you have many years until retirement and toward bonds/cash as you near needing the money.
- Amanda recommends honoring comfort with a target so you can stick with it through downturns.