Asset Allocator

The Asset Allocator 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.

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Asset Allocation Results

Your Profile
AgeAGE
Portfolio PORTFOLIO
Yearly savingsYEARLY_SAVINGS
Spending needsSPENDING_NEEDS
Income neededINCOME_NEEDED
Tax bracketTAX_BRACKET
Risk toleranceVOLATILITY_TOLERANCE (scale of 0 to 10)
Economic outlookECONOMIC_OUTLOOK (scale of 0 to 10)

Suggested Asset Allocation
Large cap stockLARGE_CAPLARGE_CAP_DOLLARS
Mid cap stockMID_CAPMID_CAP_DOLLARS
Small cap stockSMALL_CAPSMALL_CAP_DOLLARS
Foreign stockFOREIGN_STOCKFOREIGN_STOCK_DOLLARS
BondsBOND_INCOMEBOND_INCOME_DOLLARS
Municipal bondsMUNI_INCOMEMUNI_INCOME_DOLLARS
CashCASHCASH_DOLLARS



Information and interactive calculators are made available to you as self-help tools for your independent use. We can not and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.


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Definitions

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 your are to need this money any time soon. This allows you to invest more agressively in stocks which 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 insure the money is available when you need it.
Portfolio: This is the total value of your investment portfolio. Our asset allocation increases your stock exposure as your portfolio increases. Generally speaking, larger portfolios are less likely to leave an individual cash poor in a market downturn. This allows people with large portfolios to invest a bit more aggressively.
Annual savings: 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.
Spending needs: This is the percentage of your portfolio's principal you will spend in the next ten years. For example, if you expect to purchase a home or other expensive item you may need to use some of your savings. The larger your spending requirement the more conservatively you will need to invest in order to ensure that the money is available when you need it.
Income needed: 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.
Tax bracket: 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 independent use. We can not and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.