Asset Allocation Calculator

Stocks: Higher risk, higher potential return. Young investors can afford more stock exposure since they have time to recover from downturns.

Bonds: Lower risk, stable income. Provides ballast during stock market volatility. More important as you approach retirement.

Cash: Emergency fund and near-term needs. Usually 5-10% for most investors. More if you're retired or have big purchases planned.

Rebalancing: Review your allocation annually. When one asset class grows disproportionately, sell some to buy the underweighted asset.