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Asset Allocation Calculator

The asset allocation is designed to help you create a balanced portfolio of investments. Your age, ability to tolerate risk and several other factors are used to calculate a desirable mix of stocks, bonds and cash. The calculated asset allocation is a great place to start your analysis in building a balanced portfolio. Click on the "View Report" button for a detailed look at your results.

Asset Allocation Results

**GRAPH**

Your Profile
Age AGE
Current assets PORTFOLIO
Savings per year YEARLY_SAVINGS
Income required INCOME_NEEDED
Marginal tax rate TAX_BRACKET
Risk tolerance MSG_VOLATILITY_TOLERANCE (VOLATILITY_TOLERANCE scale of 0 to 10)
Economic outlook MSG_ECONOMIC_OUTLOOK (ECONOMIC_OUTLOOK scale of 0 to 10)

Suggested Asset Allocation
Large cap stock LARGE_CAP LARGE_CAP_DOLLARS
Mid cap stock MID_CAP MID_CAP_DOLLARS
Small cap stock SMALL_CAP SMALL_CAP_DOLLARS
Foreign stock FOREIGN_STOCK FOREIGN_STOCK_DOLLARS
Bonds BOND_INCOME BOND_INCOME_DOLLARS
Municipal bonds MUNI_INCOME MUNI_INCOME_DOLLARS
Cash CASH CASH_DOLLARS



Information and interactive calculators are made available to you as self-help tools for your personal independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.



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Definitions

Current age
Your current age. This is by far the most important aspect of asset allocation. For most people the majority of their portfolio is for their retirement. The younger you are, the less likely you need this money any time soon. This allows you to invest more aggressively in stocks that generally have the best long-term returns. As you get older, it is advisable to move more of your investments to securities with less fluctuation such as cash and bonds. This can help ensure the money is available when you need it.

Current assets
This is the total value of your investment portfolio. Our asset allocator increases your stock exposure as your portfolio increases. Generally speaking, larger portfolios are less likely to leave individuals cash poor in a market downturn. This allows people with large portfolios to invest a bit more aggressively.

Savings per year
This is the amount you will be adding to your investments each year. Like portfolio size, the more you invest the more aggressive your investments should be.

Income required
This is the percentage of income you will need from your investments. Most people do not require any income from their investments until they retire.

Marginal tax rate
The tax rate you expect to pay on your investments.

Risk tolerance
Your personal ability to tolerate your portfolio value fluctuating up and down. Many people overestimate their ability to tolerate risk. Unless you can handle a 20% decline in your portfolio during a stock market correction, you may wish to keep your risk tolerance at or below the mid-point.

Economic outlook
This is your view of future economic growth and the overall health of the economy. The better your outlook, the more aggressive you can be with your investments.

Information and interactive calculators are made available to you as self-help tools for your personal independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.