About the Asset Allocation Calculator
Asset allocation — how you split your money between stocks, bonds and cash — is the main driver of how much a diversified portfolio swings from year to year, and a major influence on its long-run return. This asset allocation calculator suggests a starting mix from your age and risk tolerance, converts the percentages into amounts for your portfolio, and estimates the blended return based on the assumptions you choose.
It uses the well-known “age in bonds” family of rules: subtract your age from 100, 110 or 120 to get a stock percentage, then adjust up or down by 15 points for an aggressive or conservative temperament. A 5% cash buffer is kept for liquidity. Younger investors with decades to recover from downturns get more stocks; people nearer retirement get more bonds to steady the ride.
Treat the result as a sensible starting point rather than personal advice. Your time horizon, job stability, pension income and how you actually behaved in past market falls matter as much as age. The expected-return figures are editable assumptions, not forecasts.
With the default inputs, the stocks is 75%. Change any value above to recalculate instantly.
How to use the asset allocation calculator
- 1Enter your age and choose your risk tolerance honestly.
- 2Pick a rule of thumb — 110 minus age is a balanced middle ground.
- 3Enter your portfolio value to see amounts for each asset class.
- 4Adjust the return assumptions if you want a different blended estimate.
- 5Rebalance back to the suggested mix once or twice a year.
Formula and method
The starting stock share is your chosen rule number (100, 110 or 120) minus your age, kept between 20% and 90%. A conservative profile subtracts 15 points and an aggressive one adds 15, with the result held between 10% and 95%. Bonds receive what is left after a 5% cash reserve (never less than 5%), and cash takes any remainder.
The blended expected return is the weighted average of the three asset-class return assumptions: stocks% × stock return + bonds% × bond return + cash% × cash return. These assumptions are yours to change; long-run averages are not guarantees and short-term results can differ widely.
- Rule
- 100, 110 or 120 depending on the rule of thumb chosen
- Age
- Your current age
- ±15
- Risk adjustment: −15 conservative, 0 moderate, +15 aggressive
Worked examples
35-year-old, moderate, $100,000
110 − 35 = 75% stocks, leaving 20% bonds after a 5% cash reserve. With 8% / 4% / 3% assumptions the blended return is 0.75 × 8 + 0.20 × 4 + 0.05 × 3 = 6.95%.
60-year-old, conservative, $500,000
110 − 60 = 50%, minus 15 points for a conservative profile gives 35% stocks. Bonds take 60% and cash 5%, so $175,000 goes to stocks and $300,000 to bonds, with a blended return estimate of 5.35%.
25-year-old, aggressive, 120 rule
120 − 25 = 95, capped at 90%, then +15 for aggressive, capped again at 95% stocks. The minimum 5% bond allocation uses up the rest, leaving no cash reserve.
Frequently asked questions
What is the 110 minus age rule?+
It suggests holding 110 minus your age as a percentage in stocks, with the rest in bonds and cash. A 30-year-old would hold about 80% stocks. It is a modern update of the older 100-minus-age rule that reflects longer lifespans.
How often should I rebalance my portfolio?+
Many investors rebalance once or twice a year, or whenever an asset class drifts more than about 5 percentage points from its target. Rebalancing sells what has grown and buys what has lagged, keeping risk at the level you chose.
Should my allocation change as I get older?+
Usually yes. As retirement nears you have less time to recover from a market fall and will soon need to withdraw money, so most glide paths — including target-date funds — shift gradually from stocks toward bonds.
Does this include international stocks and real estate?+
The stock figure covers all equities. Many investors put 20%–40% of the stock portion in international shares for diversification, and REITs can sit inside the stock allocation. Use the portfolio rebalancing calculator to manage more detailed targets.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.