Asset Allocation Calculator

The Asset Allocation Calculator helps users determine the optimal distribution of their investment across stocks, bonds, and cash based on the amount, age, risk tolerance, and investment time horizon.

Use Our Asset Allocation Calculator

Step-by-Step Guide to Using the Asset Allocation Calculator

Welcome to the Asset Allocation Calculator. This guide will help you efficiently use the calculator to determine the optimal distribution of your investment portfolio based on your individual inputs.

Step 1: Input Your Total Investment Amount

Begin by entering the total amount you plan to invest. This figure should be expressed in U.S. dollars.

  • Total Investment Amount ($): This is a required field. Enter an amount that is at least $1,000.
  • If you enter an amount less than $1,000, you will need to adjust it to meet the minimum requirement.

Step 2: Enter Your Age

Your age is a critical factor in determining the appropriate risk level of your investment portfolio.

  • Your Age: Input your age in years. This is a required field with an acceptable range from 18 to 100.
  • Be sure to enter a valid age within the specified range to proceed.

Step 3: Select Your Risk Tolerance

Choose your level of comfort with investment risk. This will guide the asset allocation recommended by the calculator.

  • Risk Tolerance: This is a required selection. Choose one of the following options:
    • Conservative (Low Risk)
    • Moderate (Medium Risk)
    • Aggressive (High Risk)

Step 4: Choose Your Investment Time Horizon

The time frame of your investment impacts the asset allocation strategy.

  • Investment Time Horizon: This is another required choice. Select from:
    • Short Term (0-5 years)
    • Medium Term (5-10 years)
    • Long Term (10+ years)

Step 5: Review Your Asset Allocation Results

Based on your inputs, the calculator will provide a recommended breakdown of your investments into stocks, bonds, and cash.

  • Stocks Allocation: This reflects the portion of your investment amount allocated to stocks.
  • Bonds Allocation: This shows the suggested investment in bonds.
  • Cash & Equivalents: This amount is recommended for cash or cash-equivalent investments.

Step 6: Review the Percentage Allocations

The calculator also provides percentage representations of each asset class within your portfolio.

  • Stocks Percentage: A percentage representation of your investment in stocks.
  • Bonds Percentage: The percentage of your portfolio allocated to bonds.
  • Cash Percentage: The percentage allocated to cash and equivalents.

By following these steps, you will be able to effectively use the Asset Allocation Calculator to guide your investment decisions, ensuring that your portfolio aligns with your financial goals and personal risk tolerance.