Portfolio Allocation Calculator

Build an optimal investment portfolio based on your risk tolerance, time horizon, and financial goals. Get personalized asset allocation recommendations with risk analysis and performance projections.

Portfolio Parameters

Investment Profile

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Risk Assessment

Market Expectations

Correlation between stock and bond returns (-1 to 1)

Custom Allocation (Optional)

Understanding Portfolio Allocation

Asset Classes

  • Stocks: Higher growth potential, higher volatility
  • Bonds: Lower risk, steady income
  • Cash: Lowest risk, lowest returns
  • REITs: Real estate exposure
  • Commodities: Inflation hedge

Risk Considerations

  • Market Risk: Overall market volatility
  • Inflation Risk: Purchasing power erosion
  • Interest Rate Risk: Bond price sensitivity
  • Concentration Risk: Lack of diversification
  • Liquidity Risk: Ability to sell quickly

Rebalancing

  • Quarterly: Review allocations
  • Threshold: Rebalance at 5-10% drift
  • Tax Efficiency: Use tax-advantaged accounts
  • Dollar-Cost Averaging: Regular contributions
  • Life Changes: Adjust with age/goals