Asset Allocation Calculator

Determine target stock/bond allocation using the 120-minus-age rule, adjusted for risk tolerance.

Financial Disclaimer

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.

Inputs

Your age

Risk tolerance

Years to retirement

Portfolio value ($)

Tab to move between fields

Results

Stock allocation (%)

85%

Bond allocation (%)15%

Stock amount ($)$85,000.00

Bond amount ($)$15,000.00

Expected return (%)9.1%

Expected volatility (%)14.35%

How to Use This Calculator

Enter your current age and select your risk tolerance on a scale from conservative to aggressive.
Input your years to retirement and your current total portfolio value.
Review the recommended Stock % and Bond % allocation based on age-adjusted and risk-adjusted formulas.
Check Expected Return % to see the projected annual return for your recommended allocation.
Use Expected Volatility % to understand the expected annual swings — higher volatility may be uncomfortable if you're risk-averse.

How the result changes with Your age

Your age	Stock allocation (%)
25	95%
43	77%
65	55%
83	37%

What each input means

Your age: Your current age.
Risk tolerance: Your comfort level with investment risk and volatility.
Years to retirement: Years until you plan to retire.
Portfolio value ($): Current total investment portfolio value.

What each result means

Stock allocation (%): Recommended percentage in equities.
Bond allocation (%): Recommended percentage in bonds.
Stock amount ($): Dollar amount to hold in stocks.
Bond amount ($): Dollar amount to hold in bonds.
Expected return (%): Weighted average expected annual return.
Expected volatility (%): Weighted average annual standard deviation.

How this is calculated

Worked example, using the default values

Identify Input Parameters
4 parameters
Your age = 35, Risk tolerance = 3, Years to retirement = 30, Portfolio value ($) = 100000 = 4 input(s) provided
Calculate Stock allocation
Stock allocation
85 = 85%
Calculate Bond allocation
Bond allocation
15 = 15%
Calculate Stock amount
Stock amount
85000 = $85,000