Asset mix and rebalancing.
We Are Calculator
Professional Financial Tools
8/25/2026
The classic age rules. Moderate (110 − age) is the common modern default.
Cash held aside for near-term needs. 5% is a common default; set it to 0 for a pure stock/bond split.
Fill these in to compare your actual split against the target and see what to rebalance.
Weighted average of long-run assumptions: stocks 10%, bonds 4.5%, cash 2.5%. An expectation, not a forecast — actual returns vary widely year to year.
One standard deviation of annual return, from σ = √(w₁²σ₁² + w₂²σ₂² + 2·w₁·w₂·σ₁·σ₂·ρ) with σ_stocks 17%, σ_bonds 7%, ρ ≈ 0. In roughly two years out of three, returns land within ±1σ of the expected return.
The 5th-percentile annual return: E(R) − 1.645σ = 8.53% − 1.645×12.83%. In 19 years out of 20 the portfolio does better than this. Assumes normally distributed returns, which understates genuine crash risk — real drawdowns have fatter tails.
The 5th-percentile annual return: E(R) − 1.645σ = 8.53% − 1.645×12.83%. In 19 years out of 20 the portfolio does better than this. Assumes normally distributed returns, which understates genuine crash risk — real drawdowns have fatter tails.