Find your ideal portfolio allocation by age and risk tolerance. Compare the 60/40 portfolio, 3 fund portfolio, and more — with a built-in rebalancing calculator.
Enter your age, risk tolerance, and portfolio value to get a personalized asset allocation recommendation. Our calculator uses the "100 minus age" rule as a baseline, adjusted for your risk profile.
Click any preset to see how it compares. These are the most widely-used asset allocation models recommended by financial advisors.
Classic rule: Stock % = 100 − your age. Simple and age-adjusted.
60% stocks, 40% bonds. The traditional balanced portfolio benchmark.
80% stocks, 20% bonds. For growth-oriented investors with longer time horizons.
VTI + VXUS + BND. Total market exposure at minimal cost.
30% stocks, 55% bonds, 7.5% gold, 7.5% commodities. Built for any environment.
This chart illustrates how your recommended stock percentage decreases as you age, based on the "100 minus age" rule with risk-tolerance adjustments for conservative (−10%), moderate (baseline), and aggressive (+10%) investors.
Compare how $10,000 invested in 1994 would have grown under different stock/bond allocations. The 100/0 portfolio delivered the highest returns but with significantly more volatility.
Historical performance data for different asset allocation models, based on US stock and bond returns from 1994–2024.
| Allocation | Avg. Annual Return | Best Year | Worst Year | Max Drawdown | Std. Deviation |
|---|---|---|---|---|---|
| 100/0 (All Stock) | 10.2% | +33.4% | −37.0% | −50.9% | 15.2% |
| 80/20 | 9.4% | +28.1% | −28.5% | −40.6% | 12.1% |
| 60/40 | 8.7% | +22.8% | −20.1% | −33.1% | 9.5% |
| 40/60 | 7.5% | +19.2% | −11.8% | −21.3% | 6.8% |
| All-Weather | 7.8% | +17.6% | −3.9% | −12.1% | 5.9% |
Enter your current holdings and target allocation to see exactly what trades are needed to rebalance. A portfolio rebalancing calculator helps you maintain your target asset allocation over time.
The 3 fund portfolio is the simplest way to build a diversified, low-cost investment portfolio. Popularized by the Bogleheads community, it uses just three total-market index funds to capture virtually the entire global stock and bond market.
| Age Range | VTI (US Stocks) | VXUS (Intl Stocks) | BND (Bonds) |
|---|---|---|---|
| 20–30 | 54% | 36% | 10% |
| 30–40 | 48% | 32% | 20% |
| 40–50 | 39% | 21% | 40% |
| 50–60 | 30% | 20% | 50% |
| 60+ | 24% | 16% | 60% |
Asset allocation is the process of dividing your investment portfolio among different asset categories — primarily stocks, bonds, and cash equivalents. It is widely considered the single most important decision an investor makes, with studies suggesting it accounts for over 90% of a portfolio's return variability.
Different asset classes behave differently under various economic conditions. Stocks tend to outperform during economic expansions, while bonds often provide stability during recessions. By combining assets that don't move in perfect lockstep (low correlation), you can build a portfolio that delivers more consistent returns with lower risk.
Strategic asset allocation sets a long-term target mix (like a 60/40 portfolio) and rebalances periodically to maintain it. Tactical asset allocation actively adjusts the mix based on market conditions — for example, reducing stock exposure when valuations appear stretched. Most individual investors benefit from a strategic, rules-based approach using an asset allocation calculator.
Your age is the primary input in most asset allocation models because it determines your investment time horizon. Younger investors can afford more volatility (and thus more stocks) because they have decades to recover from market downturns. The classic "100 minus age" rule provides a simple starting point: a 30-year-old would hold 70% stocks and 30% bonds. Modern variants use "110 minus age" or "120 minus age" to account for longer life expectancies and lower bond yields.
While often confused, asset allocation and diversification are distinct concepts. Asset allocation is the high-level split between asset classes (stocks vs. bonds vs. cash). Diversification is spreading investments within each class — for example, holding both US and international stocks, or both corporate and government bonds. A well-designed portfolio employs both strategies, which is exactly what the 3 fund portfolio achieves.