⚖️ Asset Allocation Calculator
Build a diversified investment portfolio tailored to your age, risk tolerance, and financial goals.
Asset Allocation Fundamentals
What Is Asset Allocation?
Asset allocation is how you divide your investment portfolio among different asset classes like stocks, bonds, and alternatives. It’s the most important factor in determining your investment returns.
Why It Matters:
Studies show asset allocation accounts for 90% of portfolio performance variation over time.
Key Asset Classes
Higher risk, higher potential returns
Lower risk, steady income
REITs, commodities, international
Age-Based Allocation Strategies
🌱 Young Investors (20s-30s)
Long time horizon allows for aggressive growth strategy.
🎯 Mid-Career (40s-50s)
Balanced approach with moderate risk reduction.
🏖️ Pre-Retirement (60+)
Capital preservation with inflation protection.
Risk vs. Return Profiles
Conservative
Low risk, steady returns
Moderate
Balanced risk/reward
Growth
Higher volatility, growth focus
Aggressive
Maximum growth potential
Portfolio Management Tips
Rebalance Regularly
Review and rebalance your portfolio quarterly or when allocations drift 5% from targets.
Stay Diversified
Don’t put all your eggs in one basket. Diversify within asset classes and globally.
Consider Tax Location
Place tax-inefficient investments in tax-advantaged accounts like 401(k)s and IRAs.
Adjust with Life Changes
Revisit allocation when you get married, have children, change jobs, or approach retirement.