New to this? Read the plain English guide first.
Turn your target percentages into dollar amounts for stocks, bonds and cash.
Asset allocation is how you divide your money between major categories. This calculator turns your target percentages into dollar amounts so you can see what to buy or rebalance.
Dollar amount for each category equals your total portfolio value times its target percentage. The percentages should add up to 100.
With a $50,000 portfolio split 60 percent stocks, 30 percent bonds and 10 percent cash, you would hold $30,000 in stocks, $15,000 in bonds and $5,000 in cash. If stocks grow to $36,000 while the rest stays flat, your stock share rises to about 64 percent and rebalancing would trim it back.
Pick percentages that match your time horizon and how much loss you can handle, not just what sounds good in a rising market. Review once or twice a year and rebalance when you drift by about five points.
Taking too much risk after a good year, ignoring costs and holding too many overlapping funds.
Read how to build a stock portfolio. See every term in the investing glossary, try more tools in investor tools, or test yourself in Stock Jeopardy.
For education only, not investment advice. Results are estimates based on the numbers you enter.