Free Asset Allocation Calculator

Asset Allocation by Age

The Classic Rule

Stock Allocation = (120 - Age) x Risk Multiplier

Older versions used 110 or 100 instead of 120, but increasing life expectancies favor more aggressive allocations.

Risk Tolerance Adjustments

Conservative (0.8x): Less volatility, lower expected return

Moderate (1.0x): Balanced approach, standard rule

Aggressive (1.2x): More stocks, higher expected return and volatility

Why This Works

Younger investors have more time to recover from downturns, so they can hold more stocks. As retirement approaches, shifting toward bonds reduces the risk of a devastating loss at the wrong time.