What is the asset allocation calculator?

The Asset Allocation Calculator is designed to help create a balanced portfolio of investments. Age, ability to tolerate risk, and several other factors are used to calculate a desirable mix of stocks, bonds and cash. The asset allocation calculator is a great place to start the analysis in building a balanced portfolio.

How does the asset allocation tool work?

Our asset allocation tool shows you suggested portfolio breakdowns based on the risk profile that you choose. We use historical returns and standard deviations of stocks, bonds and cash to simulate what your return may be over time. We use a Monte Carlo simulation model to calculate the expected returns of 10,000 portfolios for each risk profile.

Should you allocate your retirement assets by age?

Some recommend portfolio asset allocation by age, under the assumption that the younger you are, the more aggressive you should be with your retirement asset allocation. That may be true to some degree, but some investors are naturally more conservative than others.