Asset Allocation Tool
Determine the optimal mix of stocks, bonds, and other investments based on your personal situation. This tool provides a starting point for your asset allocation strategy, which should be refined based on your specific circumstances.
Your Information
Recommended Allocation
Enter your information and click "Calculate Allocation" to see your recommended asset mix.
Disclaimer: This allocation is a starting point based on general principles. Your optimal allocation may differ based on your specific circumstances, including your financial situation, tax considerations, and other investments. Consider consulting with a financial advisor for personalized advice.
Understanding Asset Allocation
Asset allocation is the process of dividing your investment portfolio among different asset categories, such as stocks, bonds, and cash. The right asset allocation balances risk and reward according to your specific situation, including:
Age and Time Horizon
Generally, younger investors with longer time horizons can afford to take more risk, potentially allocating more to stocks for growth.
Risk Tolerance
Your personal comfort level with market fluctuations affects how conservative or aggressive your allocation should be.
Financial Goals
Different goals (retirement, education, home purchase) may require different strategies and time horizons.
Financial Situation
Your income, expenses, liquidity needs, and other assets affect your optimal allocation.
Research has shown that asset allocation is the primary determinant of a portfolio's long-term returns and volatility, often more important than individual security selection.