Asset Allocation Calculator — 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.