Free asset allocation calculator
Build an age-appropriate investment allocation — enter your age and risk tolerance to see a recommended stock, bond, and cash mix, updated live, as you type.
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Hypothetical projection. Excludes taxes, inflation, and fees. Actual investment returns vary.
Results are estimates. Consult a professional.
How the asset allocation calculator works
Asset allocation is the process of dividing an investment portfolio among different asset categories — primarily stocks, bonds, and cash. The calculator uses your age and risk tolerance to suggest a target mix, then shows how far your current holdings deviate from that target so you know when to rebalance.
Worked example: age-35 investor with $100,000
Target using the 110 rule: 75% stocks ($75,000), 20% bonds ($20,000), 5% cash ($5,000). Current holdings after market moves: $80,000 stocks / $16,000 bonds / $4,000 cash.
Suggested allocations by age and risk profile
The table shows stocks / bonds / cash percentages for three risk profiles. Conservative investors hold more bonds; aggressive investors hold more stocks. All figures are starting points — your actual situation (pension, other assets, risk tolerance) may justify a different mix.
| Age | Aggressive | Moderate | Conservative |
|---|---|---|---|
| 25 | 90% / 10% / 0% | 80% / 15% / 5% | 65% / 30% / 5% |
| 35 | 80% / 15% / 5% | 70% / 25% / 5% | 55% / 35% / 10% |
| 45 | 70% / 25% / 5% | 60% / 30% / 10% | 45% / 40% / 15% |
| 55 | 60% / 30% / 10% | 50% / 35% / 15% | 35% / 45% / 20% |
| 65 | 50% / 40% / 10% | 40% / 40% / 20% | 25% / 50% / 25% |
Source: Fidelity and Vanguard glide-path benchmarks (2024). Stocks / Bonds / Cash.
Tips for managing your asset allocation
Getting the allocation right is only half the job — keeping it right over time is the other half. Markets drift your weights without any action on your part, so building a rebalancing habit is just as important as the initial target.
- Rebalance on a schedule, not on emotion — annual or semi-annual rebalancing is sufficient for most investors and avoids panic selling.
- Use new contributions first — direct new money into underweight assets before selling anything; this rebalances without triggering taxable events.
- Factor in all accounts together — treat your 401(k), IRA, and taxable accounts as one portfolio when evaluating your overall allocation.
- Revisit your target after major life events — a new job, marriage, or approaching retirement each warrants a fresh look at your risk profile.
- Hold bonds in tax-advantaged accounts — bond interest is taxed as ordinary income; keeping bonds inside an IRA or 401(k) shelters that income.
Accuracy and limitations
The age-based rules (110 or 120 minus age) are useful starting points, not precise prescriptions. They assume a standard career trajectory and average risk tolerance, and they ignore pension income, real-estate holdings, business equity, life expectancy differences, and planned large expenditures. Two people of the same age can have very different optimal allocations.
Not financial advice — consult a financial professional for your specific situation.
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About this calculator
Part of our finance calculators suite — explore all calculators.