Report #8

Personal Finance for the Lazy

August 19, 2025

Well, we’re back. Today we’re talking about portfolio allocation for your working years, aka, how to stack stocks, bonds, and cash so you can grow that money tree without chopping it down too early.

Today's Report: How to Invest at Every Age – Investopedia
Investopedia gives the classic playbook, decade by decade:

  • 20s → Load up on stocks (90–100%) to let compound growth do its thing.

  • 30s → Keep it stock heavy but start mixing in bonds as life gets more expensive.

  • 40s → Balance growth with family and career — roughly 80% stocks, 20% bonds.

  • 50s → Preservation time: 60–70% stocks, with more bonds and catch-up contributions.

The philosophy: be aggressive early, then gradually shift to stability as retirement gets closer.

Quick Poor

  • SoFi – Asset Allocation by Age
    Agrees with stock-heavy portfolios in your 20s/30s but points out real-world hurdles, student debt, job instability, rising rents. Suggests simple, hands-off options like index funds, ETFs, or target-date funds.

  • Financial Samurai – The Proper Asset Allocation of Stocks and Bonds by Age
    Pushes back on “100 minus age.” Offers models ranging from “120 minus age” (more aggressive, because people live longer) to a cautious 50/50 split. A reminder that cookie-cutter formulas don’t fit everyone.

  • Empower – Average Asset Allocation by Age
    Reality check: 20-somethings actually keep 26% of assets in cash, nearly the same as retirees. Bonds don’t show up in force until the 50s. Translation? Most people aren’t as aggressive as the textbooks say.

My Poor

I like the simplicity of the “100 minus age” formula (or “120 minus age” if you’re feeling bold), but I’m also a fan of spreading bets: large-cap, mid-cap, small-cap, Bitcoin, and a splash of international.

Bottom line? The best allocation isn’t the one that sounds smartest; it’s the one you’ll actually stick with through thick and thin.

Let us know if this was helpful or if you have questions.

Thanks!

This newsletter uses AI as a co-creator to save time and keep the pours flowing. Final thoughts and questionable humor are all mine. 😘 

The Poor Boy Report (PBR) is for educational and informational purposes only and should not be considered as professional financial advice or investment recommendations. All information presented is based on personal opinions and research and may not reflect the most current developments in personal finance.

PBR is not a registered financial advisor, and no content in this newsletter constitutes or should be interpreted as, a specific offer or solicitation to buy or sell any financial products or investments. Always consult with a licensed financial advisor or other qualified professionals before making any financial decisions or taking action based on the information provided in this newsletter.