Asset Allocator

The asset allocation calculator 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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Definitions

Age
Your current age. This is by far the most important aspect of the asset allocation calculator . 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 insure 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
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
This 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.

Asset Allocation Calculator
(Create a Great Investment Portfolio)

Are you looking out for a reliable method to create a balanced set of investments? If yes, you have arrived at the right place. Try using our asset allocation calculator to simplify your efforts.

This calculator has been specially designed to help you decide on the best mix of cash, bonds and stocks so you will have a secure portfolio of investments. To calculate the right mix of investments, this asset allocation calculator considers several factors like your age and ability to withstand risk. So go ahead, enter your information and click the ‘calculate’ button to begin building a stable portfolio of investments. Then click the ‘View Report’ button to view a detailed analysis of your results. Now here are the explanations of some of the terms you will come across while using this asset allocation calculator. Read through this carefully to make sure you understand how these terms affect your results.

Current age: This is definitely the most crucial factor of asset allocation. Most people create an investment portfolio for their retirement. So, the younger you are the more time you have to invest in stocks with the best long-term returns. However, as you age, it is highly recommended that you focus more on securities that fluctuate less – like bonds and cash. This is a great way to ensure that money will always be available when you need it.

Current assets: This refers to the total value of your portfolio of investments. As the portfolio grows in size, the asset allocation calculator strengthens the stock exposure. That means the larger your portfolio the less likely you are to be cash poor in case of a market downturn.

Income required: This term implies the percentage of income that you require from your investments. Usually, people do not need any income from investments until retirement.

Savings per year: This is the approximate amount that you will add to your investments every year.


Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.