Asset Allocation Calculator
Build an optimal asset allocation strategy based on your age, risk tolerance, and investment timeline.
Your Details
How long until you need the money
Recommended Allocation
Visual Allocation
Stock Recommendations
- •UK: VWRL (Vanguard All-World ETF)
- •US: VOO or SPY (S&P 500 ETF)
- •UK: VUSA (S&P 500 GBP Hedged)
- •UK FTSE 100: VUKE
- •Global: VHYL (High Dividend Yield)
Bond Recommendations
- •UK: VGOV (UK Gilt ETF)
- •Global: VAGP (Global Aggregate Bond)
- •Corporate: SLXX (Short-Duration Corp)
- •UK: VDTY (Developed World Govt Bond)
Cash Recommendations
- •High-interest savings account
- •Premium Bonds (NS&I)
- •Money market funds
- •Cash ISA
💡 Rebalancing Tips
- • Review and rebalance your portfolio annually or when allocation drifts 5%+
- • Use new contributions to rebalance (buy underweight assets)
- • Consider tax implications when selling in taxable accounts
- • Hold bonds and REITs in tax-advantaged accounts (ISA/SIPP)
Asset Allocation Guide
Why Asset Allocation Matters
Studies show that asset allocation accounts for over 90% of portfolio performance variability over time. The mix of stocks, bonds, and cash in your portfolio is more important than individual security selection.
The Three Main Asset Classes
📈 Stocks (Equities)
Highest growth potential but most volatile. Historically 7-10% annual returns. Best for long time horizons (10+ years).
📊 Bonds (Fixed Income)
Lower returns (3-6%) but more stable. Provide income and cushion during stock market downturns. Essential for shorter time horizons.
💰 Cash & Equivalents
Most stable but lowest returns (1-3%). Maintains liquidity for emergencies and short-term needs. Protection against market volatility.
Age-Based Allocation Rules
Common rules of thumb:
- • 110 minus age: Traditional rule (110 - 35 = 75% stocks)
- • 120 minus age: More aggressive (120 - 35 = 85% stocks)
- • 100 minus age: Conservative (100 - 35 = 65% stocks)
These are starting points - adjust based on risk tolerance, income stability, and goals.