Asset allocation calculator
Suggested allocation
- Stocks (70%)
- $70,000
- Bonds (20%)
- $20,000
- Cash (10%)
- $10,000
- Suggested allocation
- 70% stocks
A starting point built from age and risk tolerance, not a recommendation. Rebalance once a year rather than reacting to headlines.
The short answer
Allocation is the mix of stocks, bonds and cash in your portfolio, and it drives most of the difference in long-term risk and return. Enter your age, risk tolerance and portfolio value for a starting split.
Why allocation beats stock picking
Studies of portfolio behaviour keep landing in the same place: the split between asset classes explains the bulk of return variation over time, far more than which individual funds you hold.
Rebalancing
Check once a year, or when a slice drifts more than 5 points from target.
Rebalance with new contributions first to limit tax.
Shift toward bonds gradually as your withdrawal date approaches.
The formula
Stocks % ≈ 110 − age, adjusted by risk tolerance. Bonds and cash take the remainder.