Rule of thumb: bond % = your age (e.g. age 30 → 30% bonds, 70% stocks). The Trinity Study tested 60/40 stocks/bonds as the canonical retirement allocation supporting 4% withdrawals for 30 years.
Modern variants tilt by risk capacity not just age — early retirees with 50-year horizons often hold 80-100% equities, while late-career investors shift toward bonds + cash for sequence-of-returns protection. Common preset models below.
Reference allocation models
| Model / age | Allocation | Context |
|---|---|---|
| Age 25 (aggressive) | 90/10 stocks/bonds | Long horizon, high risk capacity |
| Age 35 (growth) | 80/20 | Bogleheads 3-fund classic |
| Age 45 (balanced-growth) | 70/30 | Slight de-risking |
| Age 55 (balanced) | 60/40 | Trinity Study reference allocation |
| Age 65 (conservative) | 50/50 | Near-retirement glide path |
| Age 75+ (preservation) | 30/70 | Drawdown phase |
| Boglehead 3-fund | 80% TSM, 20% bonds + 0% international | Simple, low-cost |
| Boglehead 4-fund | 60/25/15 | TSM + international + REIT + bonds |
| All-Weather (Dalio) | 30/40/15/7.5/7.5 | Stocks/long bonds/intermediate/gold/commodities |
| Permanent Portfolio (Browne) | 25/25/25/25 | Stocks/bonds/gold/cash |
| 60/40 + 10% REIT | 54/36/10 | Common ETF tilt |
| 100% equities (lean FI) | 100/0 | Highest expected return, highest volatility |
History & origin
Index-based portfolio allocation traces to John Bogle's launch of the first retail index fund at Vanguard in 1976. The 'age in bonds' heuristic (100 minus age in stocks) dates from the 1940s. The Bogleheads three-fund portfolio (US total stock + international + bonds) emerged in the 2000s on the Bogleheads.org forum. Alternative risk-parity frameworks include Ray Dalio's All Weather (1996) and Harry Browne's Permanent Portfolio (1981, four 25% slices: stocks, long bonds, gold, cash).
Portfolio Allocation Tool
Build your target portfolio allocation visually. Add asset classes, adjust percentages with sliders, and see the donut chart update in real time. Export as PNG or copy.
How to review portfolio allocation
- Enter each holding with its current value and asset class (equity, bond, crypto, cash, commodity).
- The tool aggregates the totals and shows your current weights against target weights you define.
- Review drift — positions that have moved more than 5% from target usually need attention.
- Use the rebalance suggestions to see the trades that would bring allocations back to target.
Common use cases
- Performing a quarterly allocation review to catch drift from your target policy weights.
- Evaluating whether a new contribution should go into the underweight asset class to rebalance without selling.
- Stress-testing an allocation by seeing what happens when one asset class moves 20% up or down.
- Documenting your target allocation so you can audit decisions over time as the mix evolves.
Frequently asked questions
How often should I rebalance?
Most research supports rebalancing when a position drifts 5 percentage points from target or on an annual schedule — whichever triggers first. Rebalancing more often adds friction without much benefit.
Should I include cash as an asset class?
Yes. Cash serves a strategic purpose (optionality, capital preservation) and counts toward your allocation. Omitting it overstates your equity exposure.
What is drift?
The difference between current weight and target weight. A 60/40 portfolio that grows to 70/30 after a bull run has drifted 10 points in equities — rebalancing sells equities to fund a bond purchase, bringing it back to 60/40.
Is my data stored?
No. All calculations run in your browser.
About portfolio allocation
Diversification across asset classes reduces risk. A balanced portfolio typically includes stocks, bonds, crypto, real estate, and cash. The ideal mix depends on your risk tolerance and time horizon.
- Interactive donut chart
- Up to 10 asset classes
- Sliders + editable percentages
- Normalize to 100% button
- Export chart as PNG
- Editable asset names
Free. No signup. Inputs stay in your browser. Ads via AdSense (consent required).
By Marco B. ·