MARIELLE SEGARRA, HOST:

You’re listening to LIFE KIT…

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SEGARRA: …From NPR.

Hey. It’s Marielle. OK, I’m going to do things a little differently today. I’m going to jump right into one of our tips for diversifying your investments. It’s a formula called the rule of 120.

AMANDA HOLDEN: The very simple calculation that folks can use is just take 120 minus your age.

SEGARRA: One-twenty minus your age.

HOLDEN: And that should be your stock allocation.

SEGARRA: By the way, this is Amanda Holden, founder of a financial literacy business called Invested Development and author of “How To Be A Rich Old Lady.” When she says stock allocation, she’s talking about stocks versus bonds. If that means nothing to…