Stocks vs Bonds Asset Allocation Calculator
Recommended stock / bond / cash split by age and risk tolerance — age-in-bonds, "120-minus-age", and target-date glide-path conventions.
Result
- Stocks (total)85%
- ↳ US stocks (60% of equity)51%
- ↳ International (40% of equity)34%
- Bonds10%
- Cash / short-term5%
- — Rule-of-thumb comparisons —
- Classic "age-in-bonds" rule (stocks)Older rule; assumed 30-yr retirement. Now considered too conservative for modern longevity.65%
- "120 minus age" rule (stocks)Modern adjustment for longer life expectancy (Bogle).85%
- Vanguard Target Retirement fund (~match)Vanguard's published glide path for an investor aged 35.90% stocks
- This calc (risk-adjusted)Modern rule + ±0 pp risk adj.85% stocks
Step-by-step
- Modern "120 − age" base: 120 − 35 = 85% stocks.
- Risk adjustment: 0 pp → 85%.
- Horizon ≥ 5yr — no horizon cap.
- Remainder: 10% bonds + 5% cash.
How to use this calculator
- Enter your current age.
- Pick risk tolerance honestly — the one that lets you sleep through a 30%+ drawdown without selling.
- Set horizon = years until you need to spend the money. For retirement at 65 and you're 35, that's 30+ years.
- The recommended split is a starting point — adjust for your specific liabilities and tax situation.
About this calculator
Asset allocation matters more than security selection for long-run returns. The classic "age in bonds" rule (bonds % = your age) was the standard for decades but is now considered too conservative because Americans live longer — a 65-yo today has a 50% chance of living past 85 and a 25% chance past 95. The modern Bogle / Vanguard adjustment is "120 minus age" for stock allocation. Target-date funds at Vanguard, Fidelity, and Schwab follow a published glide path that starts around 90% stocks for someone 30 years from retirement and ramps down to ~30% stocks by age 75. Risk tolerance flexes the rule ±10-15 percentage points: conservative investors gravitate lower-equity than the age rule suggests; aggressive higher. Horizon overrides everything — if you need the money in 3 years, you cannot be 80% in stocks no matter your age.