Asset Allocation Calculator

The asset allocation is designed to help you create a balanced portfolio of investments. Your age, ability to tolerate risk and several other factors are used to calculate a desirable mix of stocks, bonds and cash. The calculated asset allocation is a great place to start your analysis in building a balanced portfolio. Click on the 'View Report' button for a detailed look at your results.
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Your Profile
AgeAGE
Current assets PORTFOLIO
Savings per yearYEARLY_SAVINGS
Income requiredINCOME_NEEDED
Marginal tax rateTAX_BRACKET
Risk toleranceMSG_VOLATILITY_TOLERANCE (VOLATILITY_TOLERANCE scale of 0 to 10)
Economic outlookMSG_ECONOMIC_OUTLOOK (ECONOMIC_OUTLOOK scale of 0 to 10)
Suggested Asset Allocation
Large cap stockLARGE_CAPLARGE_CAP_DOLLARS
Mid cap stockMID_CAPMID_CAP_DOLLARS
Small cap stockSMALL_CAPSMALL_CAP_DOLLARS
Foreign stockFOREIGN_STOCKFOREIGN_STOCK_DOLLARS
BondsBOND_INCOMEBOND_INCOME_DOLLARS
Municipal bondsMUNI_INCOMEMUNI_INCOME_DOLLARS
CashCASHCASH_DOLLARS
Suggested Asset Allocation
StocksSUMMARY_CAP1SUMMARY_DOLLARS1
BondsSUMMARY_CAP2SUMMARY_DOLLARS2
CashSUMMARY_CAP3SUMMARY_DOLLARS3

Asset Allocation Calculator Definitions

Current age
Your current age. This is by far the most important aspect of asset allocation. For most people the majority of their portfolio is for their retirement. The younger you are, the less likely you need this money any time soon. This allows you to invest more aggressively in stocks that generally have the best long-term returns. As you get older, it is advisable to move more of your investments to securities with less fluctuation such as cash and bonds. This can help ensure the money is available when you need it.
Current assets
This is the total value of your investment portfolio. Our asset allocator increases your stock exposure as your portfolio increases. Generally speaking, larger portfolios are less likely to leave individuals cash poor in a market downturn. This allows people with large portfolios to invest a bit more aggressively.
Savings per year
This is the amount you will be adding to your investments each year. Like portfolio size, the more you invest the more aggressive your investments should be.
Income required
This is the percentage of income you will need from your investments. Most people do not require any income from their investments until they retire.
Marginal tax rate
The tax rate you expect to pay on your investments.
Risk tolerance
On a scale of 1 to 10, your personal ability to tolerate your portfolio value fluctuating up and down. Many people overestimate their ability to tolerate risk. Unless you can handle a 20% decline in your portfolio during a stock market correction, you may wish to keep your risk tolerance at or below the mid-point.
Economic outlook
On a scale of 1 to 10, is your view of future economic growth and the overall health of the economy. The better your outlook, the more aggressive you can be with your investments.


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