Asset Allocation Calculator
Find the ideal stock-to-bond allocation based on your age, risk tolerance, and investment timeline.
Recommended Stock %
85 %
Recommended Stock % vs Your Age
सूत्र
## 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.
हल किया गया उदाहरण
35-year-old, moderate risk tolerance, retiring at 65.
- 01Base stock % = (120 - 35) x 1.0 = 85%
- 02Bond allocation = 100% - 85% = 15%
- 03Years to retirement = 30
- 04Expected return = 85% x 10% + 15% x 4% = 9.1%
अक्सर पूछे जाने वाले प्रश्न
Is the age-based rule accurate?
It is a useful starting point but overly simplistic. Your actual allocation should also consider income stability, existing savings, pension or Social Security, risk capacity, and personal comfort with volatility.
Should I include international stocks?
Yes. Most financial advisors recommend 20-40% of your stock allocation in international equities for diversification. This calculator shows the overall stock/bond split; you subdivide from there.
What about other asset classes?
Real estate (REITs), commodities, and alternatives can be included as part of your stock allocation for diversification. Keep your core allocation simple, then add complexity as your portfolio grows.
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