Our needs and wants change in life. Our tastes in music, television, food and beverages change with age and experience. Similarly, our investment risk tolerance should change according to the different stages of life we’re in. When we’re young, getting back on our feet is relatively easier with time on our side than when we’re older. As we level up in life, a more conservative portfolio allocation must be employed to preserve whatever wealth that we have accumulated. A simple rule of thumb you can use to allocate your portfolio is the Rule of 100. The rule determines that individuals should hold a percentage of stocks equal to 100 minus their age. So if you’re 30 years old, 70% of your portfolio can be allocated to stocks. (This rule has also since evolved into the Rule of 120 due to longer lifespans, and works the same way). In this...