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Allocation by age — which stocks/bonds mix to choose

Published May 13, 2026 · 10 min read · By the WealthWise team · Updated June 20, 2026

⚠️ For informational purposes only. This article presents facts and concepts. WealthWise is not a registered investment advisor. For any investment decision, consult a licensed advisor with your provincial regulator.

One of the most important investment decisions is your stocks/bonds allocation. Too conservative young = miss returns. Too aggressive old = sequence risk. This guide details recommended allocations by decade, with Canadian ETFs.

In short — What stocks/bonds allocation by age 20-30-40-50-60? Canadian guide with ETF examples (XEQT, VGRO, VBAL).

Age	Stocks/Bonds mix	Horizon
20s	100% stocks	40-45 year horizon
30s	80/20 or 90/10	35 year horizon
40s	70/30	25 year horizon
50s	60/40	15 year horizon
60s	50/50 or 40/60	Pre-retirement, 2-3 year cash buffer
70s+	40/60 or 30/70	Late retirement

Simple rule: % stocks = 110 - age (was 100, modernized to 110 with longer life expectancy). Example: 30 → 80% stocks, 20% bonds; 60 → 50%/50%.

Classic rule — 100 minus your age

Simple rule: % stocks = 110 - age (was 100, modernized to 110 with longer life expectancy).

30 → 80% stocks, 20% bonds. 60 → 50%/50%.

20s — 100% stocks

40-45 year horizon. You can handle all volatility. 100% global stock ETF maximizes expected return (7-9%).

Popular: XEQT, VEQT, ZEQT (MER ~0.20%).

30s — 80/20 or 90/10

35 year horizon. Slight bond allocation to cushion crashes.

Choices: VGRO, XGRO.

40s — 70/30

25 year horizon. Balance starts mattering.

50s — 60/40

15 year horizon. Reducing volatility becomes priority.

Choices: VBAL, XBAL.

60s — 50/50 or 40/60

Pre-retirement. 2-3 year cash buffer for sequence risk.

Choices: VCNS, XCNS.

70s+ — 40/60 or 30/70

Late retirement. Crash protection priority. But keep 30-40% stocks to beat long-term inflation.

Decade	Popular ETF choices
20s (100% stocks)	XEQT, VEQT, ZEQT (MER ~0.20%)
30s (80/20 or 90/10)	VGRO, XGRO
50s (60/40)	VBAL, XBAL
60s (50/50 or 40/60)	VCNS, XCNS

Popular: XEQT, VEQT, ZEQT (MER ~0.20%). Choices: VGRO, XGRO. Choices: VBAL, XBAL. Choices: VCNS, XCNS.

Variables to adjust

Psychological risk tolerance
Income / job security
Total wealth

Lean 100% stocks (XEQT)

You are young and want to maximize expected return
Many experts (Vanguard, Bogleheads) recommend 100% stocks young
You can handle all volatility over a 40-45 year horizon

Lean balanced (VBAL)

You are near or in retirement (e.g. around 60)
A 40% year-1 crash could ruin your plan even with 30 years of retirement left
Reducing volatility is becoming a priority

Frequently Asked Questions

XEQT at 60, too risky?

For most: yes. Even with 30 years retirement, 40% year 1 crash can ruin it. Better: VBAL.

Really need 30% bonds at 30?

Depends on profile. Many experts (Vanguard, Bogleheads) recommend 100% stocks young.

How often to rebalance?

1-2x/year or at > 5% drift from target.

VGRO vs XGRO?

Same components (global 80/20). Differences negligible.

Sources & references

Educational content. Figures and rules verified against the official sources above; tax amounts change annually.