The Evolution of Money

You Might Hit a Homerun but Make Sure All Your Bases Are Covered First!

How much of your money should be kept “safe” vs “invested” vs “homerun” money as you move through different stages of life?

There is no one-size-fits-all “rule of thumb” when it comes to someone’s risk tolerance and risk capacity, however, there are some basic principles and guidelines that can help you assess if you are on the right track or if you are completely off base.
The Evolution of Money Guide provides a framework and starting point for determining whether or not you have too much or too little money in the “safe”, “investment”, or “homerun” category.
The IFW Evolution of Money Framework
The Safe Bucket: Money is easily accessible and not subject to fluctuations in value. This money should be kept in cash equivalents like CDs, money markets, short-term bonds, and the like.
The Investment Bucket: Money is kept in stocks, longer-term bonds, and real estate.
The Homerun Bucket: Investments that are more speculative in nature. Things like individual stocks, options, cryptocurrency, privately held companies, and the like.
In your 20’s and 30’s keep: 
  • 10% of your money in a “safe” bucket.
  • 60% of your money can be directed to an “investment” bucket
  • 30% of your money can be kept in a “homerun” bucket
In your 40’s and 50’s keep:
  • 30% in a “safe” bucket
  • 45% in the “investment” bucket
  • 25% in the “home run” bucket
In your 60’s and 70’s keep: 
  • 60% in a “safe” bucket (in addition to cash equivalents you can add annuities to this category)
  • 40% in an “investment” bucket
  • 0% in the “homerun” bucket
The devil is always in the details and many factors must be considered before taking action on any specific financial decisions, however, this Evolution of Money Guide can certainly provide a lot of clarity and confidence on how we position things as we move through the different life stages!




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The IFW provides valuable financial education, resources, and services that help people live their best life. 

Please remember, be mindful of the messenger that positions certain products or services as “always” bad or “always” perfect.  The fact of the matter is there are no “bad products” or “perfect products”.   The right product is the one that aligns with your goals and objectives. 

The Institute of Financial Wellness believes when it comes to financial decisions; never say “Never” never say “Always”…It Depends.

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