Cryptocurrency Q&A
What is the 120 minus age rule?
What is the 120 minus age rule?
Chiara
Sat Jun 22 2024
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6
answers
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Could you elaborate on the "120 minus age rule" in the context of cryptocurrency investing? I've heard this mentioned in discussions about asset allocation, but I'm not entirely clear on its significance. Specifically, how does this rule help investors determine their allocation to high-risk, yet potentially high-reward assets like cryptocurrencies? Is it a general guideline or a strict mathematical formula? And how does it factor in other considerations like an individual's risk tolerance, financial goals, and investment horizon? I'd appreciate a concise yet thorough explanation of this concept.
6 answers
Leonardo
Mon Jun 24 2024
For instance, a 30-year-old investor would subtract 30 from 120, resulting in 90.
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SsangyongSpiritedStrengthCourage
Mon Jun 24 2024
The 120-age investment rule serves as a guideline for individuals seeking a balanced investment portfolio.
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Ilaria
Mon Jun 24 2024
According to this rule, an investor's allocation to stocks and other equity investments should be calculated by subtracting their age from 120.
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SeoulSerenitySeekerPeaceLover
Mon Jun 24 2024
The resulting number represents the percentage of their total investment portfolio that should be allocated to stocks.
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Federica
Sun Jun 23 2024
This means that the investor should allocate approximately 90% of their investment portfolio to stocks and equity-based investments.
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