This Portfolio Allocation Calculator is a simple tool designed to generate portfolio allocation guidance based on three inputs: age, risk tolerance, and income. Instead of giving a single “perfect” target, the calculator provides allocation ranges across four broad groups—Equities, Credit, Cash, and Alternative Assets—so you have flexibility to build a portfolio that matches your preferences and constraints.
Portfolio Allocation Guidance Calculator (Ranges)
Inputs: age, risk tolerance, income. Output: allocation ranges by broad asset class.
Inputs
Methodology (overview)
- Uses an age-based equity anchor with a risk tolerance adjustment; then computes Credit as the residual after Cash and Alternative Assets.
- Produces ranges (min–max) around a midpoint to reflect reasonable flexibility rather than a single target.
- Ranges are constructed so that each bucket’s min/max remains coherent with a 100% total (Credit adjusts to keep totals feasible).
- Does not incorporate taxes, debts, employer match, liquidity constraints, concentrated stock exposure, or time-to-goal.
Outputs
| Allocation group | Suggested range | Practical notes |
|---|---|---|
| Enter inputs and click “Calculate ranges.” | ||
The goal is not to prescribe specific investments, but to help you answer a practical question: “What general mix of asset classes is reasonable for someone like me?” Your results can be used as a starting point for setting an investment policy, selecting diversified funds, and rebalancing over time. The tool also includes a separate emergency fund estimate as a planning reference, because the liquidity you hold for life events and volatility tolerance is often as important as the portfolio mix itself.
How this Portfolio Allocation Calculator Works
The calculator uses a straightforward, rules-based approach:
Age-based anchor: Younger investors typically have a higher capacity for volatility, while older investors often prioritize stability. Risk tolerance adjustment: Conservative, moderate, and aggressive profiles shift the mix toward or away from Equities and Credit. Income considerations: Income is used as a light proxy for flexibility and liquidity needs; it influences the Cash range modestly.
Your output is expressed as ranges rather than a single allocation because real-world portfolios are shaped by more than just three variables—taxes, debt, career risk, time horizon, and personal goals all matter. Ranges provide structure without forcing false precision.
What’s Included in the Allocation Groups
Equities: Public stock exposure intended for long-term growth. Credit: Bond and diversified credit exposure intended to provide income and reduce overall volatility. Cash: Cash and cash equivalents intended for liquidity and optionality. Alternative Assets: Non-traditional exposures that may diversify return drivers (risk, liquidity, and structure vary widely).
Important note: Primary home equity is not considered in these calculations. For many households, home equity is a meaningful asset, but it behaves differently than a liquid, rebalanced investment portfolio. This tool focuses on investable financial assets.
How to use Your Results
Use the output as a starting framework, then refine it based on your personal situation:
Choose allocations within the suggested ranges. Build the portfolio with diversified, low-cost exposures that match each bucket. Revisit the allocation periodically (often 1–2 times per year) and rebalance if the portfolio drifts materially from your intended range.
Disclaimer
This Portfolio Allocation Calculator is for educational purposes only and does not constitute financial, tax, or investment advice. Consider speaking with your personal financial professional before making investment decisions.