Asset allocation calculator guide
This calculator shows how your portfolio is currently divided and how far it is from a chosen target allocation. It is useful before rebalancing or checking whether a portfolio has become too stock-heavy, too conservative, or too cash-heavy.
How to use it
- Enter the current dollar amount in each asset bucket.
- Choose a preset target profile or enter a custom target.
- Review the buy/sell difference needed to reach the target.
Calculation method
The calculator compares current weights with target weights and converts the gap into dollar amounts.
Common mistake
Do not treat an allocation as a prediction. It is a risk-control framework. A portfolio can be mathematically balanced and still lose value during market declines.
FAQ
What is a good asset allocation?
It depends on time horizon, risk tolerance, income stability, and withdrawal needs. Common examples are 60/40, 80/20, and 90/10 stock/bond mixes.
Should cash be part of my portfolio?
Cash can reduce volatility and fund short-term needs, but too much cash may lower long-term growth.
How often should I check allocation?
Many investors check quarterly or annually, or rebalance when an asset class drifts more than a chosen threshold.