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Market Asset Allocation Calculator

About Strategy Answers

Our asset allocation tool shows you suggested portfolio breakdowns based on the risk profile that you choose. We use historical returns and standard deviations of stocks, bonds and cash to simulate what your return may be over time. We use a Monte Carlo simulation model to calculate the expected returns of 10,000 portfolios for each risk profile. Then we use the results of that simulation to show you the range of values that your initial portfolio amount may grow into, as well as the likelihood of reaching that range.

Our Assumptions

Investment Period: We assume a 30 year investment horizon.

Investment Returns: We use historical results of different major indices to calculate expected returns.

Expected Returns Calculation: We use a Monte Carlo simulation of 10,000 portfolios to calculate expected returns.

All Portfolio investment Strategies/examples are for illustrative purposes only and are not representative of any specific investment or strategy. Diversification and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets. When you link to any of the web sites provided here, you are leaving this web site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to provided by smartasset.