Asset allocation calculator
Compare your holdings with a target mix. See the dollar changes needed and whether the new contribution you enter can rebalance without sales.
Allocation is each asset class's share of your portfolio. The balanced preset holds 54% in stocks; its modeled return of 5.9% uses the assumptions below. It is an illustration, not a recommended mix or forecast.
Rebalance by buying only, without selling
A starting point keyed on risk tolerance, not a recommendation. See the assumptions below.
Off target by more than 5 points in at least one class. About 28% of the portfolio would change hands to fix it.
Across every class above
Target is 54%
Target mix would be 5.9%
Sells shown negative
| Asset class | Now | Target | Drift | Trade |
|---|---|---|---|---|
| US stocks | 60% | 36% | +24% | -$240,000 |
| International stocks | 10% | 18% | -8% | $80,000 |
| Bonds | 20% | 34% | -14% | $140,000 |
| Cash | 10% | 6% | +4% | -$40,000 |
| Alternatives | 0% | 6% | -6% | $60,000 |
Illustration, not an investment recommendation. Target mixes, returns, volatility and correlations are assumptions. Trade amounts exclude taxes, fees, bid-ask spreads and minimum trade sizes. Investments can lose value.
What each target mix looks like
| Target mix | Stocks | Bonds and cash | Expected return | Volatility |
|---|---|---|---|---|
| Conservative | 36% | 60% | 5.3% | 7% |
| Balanced | 54% | 40% | 5.9% | 9.5% |
| Growth | 72% | 23% | 6.5% | 12.1% |
| Aggressive | 84% | 11% | 6.8% | 13.9% |
Expected return is the weighted average of the class assumptions below. Volatility is computed from a correlation matrix, so diversification depends on the assumed relationships between assets.
The assumptions behind those figures
| Asset class | Expected return | Volatility |
|---|---|---|
| US stocks | 7% | 16% |
| International stocks | 7.5% | 18% |
| Bonds | 4.5% | 6% |
| Cash | 3% | 1% |
| Alternatives | 6% | 12% |
Illustrative long-term assumptions before inflation. Actual returns and volatility can differ, including over long periods.
Before placing trades
Check the target across all accounts, including employer stock. A diversified retirement account can still leave your household concentrated in one company.
In a taxable account, compare the capital gains from selling with the option of directing new contributions toward underweight assets. The calculator does not estimate that tax bill.
The return figure is a weighted average of asset assumptions. Volatility also uses assumed correlations: how assets move together. Both are illustrations, and correlations can change during market stress.
Source: SEC Investor.gov: asset allocation.