Asset Allocation Calculator
Determine the ideal mix of stocks and bonds in your portfolio based on age and risk tolerance.
Results
What is it?
Asset allocation is the strategy of dividing your investment portfolio among different asset categories — primarily stocks (equities) and bonds (fixed income). The classic rule of thumb subtracts your age from 100 (or 110 for aggressive investors) to determine the percentage to hold in stocks.
How to use
Enter your total portfolio value and current age. Select your risk tolerance — Conservative shifts more toward bonds, Moderate follows the standard "100 minus age" rule, and Aggressive uses "110 minus age" for greater equity exposure. The calculator shows the recommended percentage split and dollar amounts.
Example scenario
A 40-year-old moderate investor with a $200,000 portfolio would get a 60% stock / 40% bond split — $120,000 in stocks and $80,000 in bonds. If they chose aggressive, it would shift to 70/30.
Pro tip
These are starting guidelines, not gospel. Consider adding alternative assets (REITs, commodities) for diversification. Rebalance at least annually or when allocations drift more than 5% from targets.