Asset Allocation Calculator
Find your optimal stock/bond/cash mix with age-based glide path and rebalancing suggestions.
Risk Tolerance
Strategy Comparison
Common Mistakes
#1: Never Rebalancing
What traders do
Setting an allocation and never adjusting it, letting market drift take over
The consequence
Your portfolio drifts from 60/40 to 80/20 after a bull market — you're taking more risk than you planned without realizing it.
What to do instead
Review your allocation at least annually. Rebalance when any asset class drifts more than 5% from target.
#2: Following Trends, Not Your Plan
What traders do
Chasing last year's winners instead of sticking to your asset allocation plan
The consequence
You buy high and sell low. The 'hot' asset class rarely repeats its performance, and you miss the recovery of the underperformers.
What to do instead
Stick to your strategic allocation. If you want to adjust, do it through your risk tolerance and glide path, not market timing.
#3: Ignoring the Glide Path
What traders do
Using the same asset allocation at age 30 and age 60 without adjusting for your changing time horizon
The consequence
At 60, a 50% stock market crash could destroy 30% of your portfolio — with only 5-10 years left to recover, your retirement is at risk.
What to do instead
Reduce stock exposure as you approach retirement. A glide path from 80% stocks at age 30 to 40% at age 65 is a common approach.
The Math Behind Rebalancing
Step 1: Target Value
Target Value = Total Portfolio × Target Allocation %
Example: $100,000 × 60% = $60,000 in stocksStep 2: Delta
Delta = Target Value - Current Value
Positive = Buy, Negative = SellStep 3: Rebalance Check
If any asset deviates > 5% from target → rebalance.
Example: Stocks at 72% of $100k vs 60% target → sell $12k.Step 3: Rebalance Check