Asset Allocation Calculator
Investing & ReturnsSplit a portfolio across asset classes.
Your portfolio & profile
Results
- Stocks60% → 71%
- Bonds25% → 18%
- Cash5% → 4%
- Real estate5% → 4%
- Commodities3% → 2%
- Crypto / alternatives2% → 1%
Allocation drift
How far each class sits from its target weight.
- Stocks−11.0 pp
- Bonds+7.0 pp
- Cash+1.0 pp
- Real estate+1.0 pp
- Commodities+1.0 pp
- Crypto / alternatives+1.0 pp
Rebalancing plan
Buy the green amounts and sell the red to reach your target.
- Stocks+$27,500
- Bonds−$17,500
- Cash−$2,500
- Real estate−$2,500
- Commodities−$2,500
- Crypto / alternatives−$2,500
Risk vs return
Where your mixes and the model portfolios sit on the risk–return map.
Diversification
Effective holdings: 2.3
Model comparison
Expected return and risk for each model against your current mix.
- Current6.2%
- Conservative4.7%
- Balanced5.9%
- Aggressive6.8%
How the suggestion is built
The glide path starts from your risk model and tilts for your profile.
- Base equity for a moderate investor55%
- Horizon tilt (25-year horizon)+8.0 pp
- Age tilt (age 40)+2.5 pp
- Goal tilt (grow wealth)+6.0 pp
- Suggested equity weight71.5%
- Remainder spread across bonds, cash & diversifiers28.5%
- Rounded so the mix totals exactly 100%
Current allocation
| Asset class | Current % | Current value |
|---|---|---|
| Stocks | 60% | $150,000 |
| Bonds | 25% | $62,500 |
| Cash | 5% | $12,500 |
| Real estate | 5% | $12,500 |
| Commodities | 3% | $7,500 |
| Crypto / alternatives | 2% | $5,000 |
Rebalancing actions
| Asset class | Current value | Target value | Action | Drift |
|---|---|---|---|---|
| Stocks | $150,000 | $177,500 | +$27,500 | −11.0 pp |
| Bonds | $62,500 | $45,000 | −$17,500 | +7.0 pp |
| Cash | $12,500 | $10,000 | −$2,500 | +1.0 pp |
| Real estate | $12,500 | $10,000 | −$2,500 | +1.0 pp |
| Commodities | $7,500 | $5,000 | −$2,500 | +1.0 pp |
| Crypto / alternatives | $5,000 | $2,500 | −$2,500 | +1.0 pp |
Target allocation & ranges
| Asset class | Target % | Suggested range | Target value |
|---|---|---|---|
| Stocks | 71% | 53–89% | $177,500 |
| Bonds | 18% | 14–23% | $45,000 |
| Cash | 4% | 1–7% | $10,000 |
| Real estate | 4% | 1–7% | $10,000 |
| Commodities | 2% | 0–5% | $5,000 |
| Crypto / alternatives | 1% | 0–4% | $2,500 |
Asset-class breakdown
| Asset class | Weight | Exp. return | Volatility | Return contribution |
|---|---|---|---|---|
| Stocks | 60% | 7.5% | 15.6% | 4.50% |
| Bonds | 25% | 3.5% | 5.5% | 0.88% |
| Cash | 5% | 2.5% | 1.0% | 0.13% |
| Real estate | 5% | 6.0% | 14.0% | 0.30% |
| Commodities | 3% | 4.0% | 18.0% | 0.12% |
| Crypto / alternatives | 2% | 12.0% | 65.0% | 0.24% |
Model comparison
| Metric | Current | Conservative | Balanced | Aggressive |
|---|---|---|---|---|
| Expected return | 6.2% | 4.7% | 5.9% | 6.8% |
| Portfolio volatility | 10.8% | 6.2% | 9.8% | 13.1% |
| Risk score | 41 | 22 | 37 | 50 |
| Diversification score | 71 | 83 | 75 | 54 |
Expected return summary
| Metric | Current | Target |
|---|---|---|
| Expected return | 6.2% | 6.5% |
| Projected value (25y) | $1,114,199 | $1,205,509 |
| Weighted-average volatility | 13.3% | 13.6% |
Risk summary
| Metric | Current | Target |
|---|---|---|
| Portfolio volatility | 10.8% | 11.9% |
| Risk level | Moderate | Moderate |
| Rough bad year (5th pct) | -11.5% | -13.1% |
| Diversification benefit | 2.5% | 1.7% |
Methodology & assumptions
The figures here are illustrative long-run estimates used to compare the shape and risk of different mixes — not forecasts, guarantees, or advice.
Capital-market assumptions
| Asset class | Return | Volatility |
|---|---|---|
| Stocks | 7.5% | 16.0% |
| Bonds | 3.5% | 5.5% |
| Cash | 2.5% | 1.0% |
| Real estate | 6.0% | 14.0% |
| Commodities | 4.0% | 18.0% |
| Crypto / alternatives | 12.0% | 65.0% |
Each class is modelled with a long-run nominal return and a volatility. Real results vary year to year and can differ markedly from these averages. The equity sleeve's effective volatility blends domestic (15.5%) and international (17.5%) stocks at your chosen split, so the figure used in your breakdown can differ slightly from the 16.0% single-market headline shown here.
Why diversification helps
Portfolio volatility is built from a correlation matrix, not a simple average, so combining assets that don't move together produces a portfolio risk below the weighted average of the parts — the diversification benefit.
The suggested glide path
The suggested mix starts from your risk model's equity weight, adds equity for a longer horizon, trims it as you age, and tilts by goal. The remainder is spread across bonds, cash and diversifiers with a rising cash floor for short horizons and older investors.
Reading the scores
The risk score maps portfolio volatility onto a 0–100 scale; the diversification score measures how evenly your money is spread across classes, with a small credit for holding international equity.
Worked example
Take a 60-year-old eight years from retirement with a moderate risk tolerance and an income goal, holding $300,000 at 70% stocks, 20% bonds and 10% cash. The short horizon and income goal pull the suggested equity weight down to about 36% stocks, so the plan is to sell roughly $102,000 of stock and move it into bonds and cash — cutting risk as the goal nears while keeping some growth.
With your numbers
On your $250,000 portfolio, the suggested mix is 71% in stocks. Your current mix carries an expected return of 6.2% and volatility of 10.8%; the target sits at 6.5% and 11.9%. Closing the gap means moving about $27,500.
Key terms
For education only. Figures are illustrative long-run estimates, not forecasts or advice, and ignore taxes, fees and specific holdings.
Know what this estimate is based on
- Jurisdiction
- General mathematical model
- Scope and limitations
- Scenario model, not a forecast. Returns, volatility, inflation, fees, and taxes are assumptions and actual investment outcomes can be lower or negative.
- Source links checked
- Jul 30, 2026
Built and regression-tested by Smart Tools Lab. It has not been individually reviewed by a licensed financial, tax, or legal professional.
How to use
- 01
Enter your total portfolio value and your profile — age, investing time horizon, risk tolerance, and primary goal — so the tool can build a suggested target.
- 02
Type in your current holdings across the six asset classes (stocks, bonds, cash, real estate, commodities, and crypto/alternatives); the calculator flags any mix that doesn't add up to 100%.
- 03
Review the suggested target allocation alongside your risk score, diversification score, and the per-class drift showing how far your current mix sits from that target.
- 04
Use the rebalancing plan's dollar buy and sell amounts for each class to move your portfolio back in line with the target.
Formula
Expected portfolio return = Σ wᵢrᵢ, the weighted average of each asset's expected return. Portfolio variance = wᵀΣw, where Σ contains each asset's volatility and the correlations between assets; portfolio volatility is the square root of that variance. Weights are normalized to 100% before the mix is analysed.
Example
Using the calculator's illustrative assumptions, a 60% stock and 40% bond mix has expected return 0.60 × 7.5% + 0.40 × 3.5% = 5.9%. With 16% stock volatility, 5.5% bond volatility and 0.10 correlation, estimated portfolio volatility is about 10.1%.
Definitions
- Asset allocation
- The percentage of a portfolio assigned to each asset class.
- Expected return
- An illustrative long-run average used for planning, not a guaranteed forecast.
- Volatility
- The standard deviation of returns, used as a measure of how widely outcomes may vary.
- Correlation
- How two asset classes tend to move together, ranging from −1 to +1.
- Diversification
- Combining imperfectly correlated assets so portfolio risk can be lower than a weighted average of individual risks.
Good to know
What asset allocation really means
Asset allocation is the decision about how to divide your money across broad categories of investments — stocks, bonds, cash, real estate, commodities, and a small alternatives sleeve — rather than which individual security to buy inside each one. It is the architecture of a portfolio: the load-bearing structure that determines how the whole thing behaves when markets rise, fall, or churn sideways. Most investors spend their attention on the wrong layer, agonizing over which fund or which stock to own, when the larger and more durable question is what fraction of the portfolio sits in growth assets versus defensive ones. Decades of portfolio research point in the same direction: the broad mix of asset classes, far more than security selection or market timing, explains how a long-term portfolio swings from year to year. Two investors can own completely different funds, yet if one holds 80 percent stocks and the other holds 40 percent, their experiences will diverge dramatically — in calm years and especially in crashes. The mix sets the temperature of the ride. This calculator treats allocation as the primary lever. You enter what you hold today, the tool estimates the expected return and risk of that combination, and it proposes a target mix drawn from your age, time horizon, risk tolerance, and goal. It then translates that target into a concrete buy-and-sell plan. Throughout, the figures are illustrative planning estimates, not forecasts. Markets do not deliver smooth averages, and no allocation removes the chance of loss. What a thoughtful mix does is align the portfolio's behavior with your tolerance for swings and your time to recover from them — which is a far more reliable foundation than chasing the next outperforming pick.
Why diversification cuts risk better than playing it safe
The intuitive way to reduce risk is to load up on assets that feel safe — more cash, more short bonds. That lowers risk, but it also caps return, and it leaves money exposed to quieter dangers like inflation eroding purchasing power. Diversification offers a more powerful idea: you can lower the risk of the whole portfolio not only by owning gentler assets, but by combining assets that do not move in lockstep with one another. The mechanism is correlation. When two asset classes tend to zig and zag at different times — stocks stumbling while bonds hold firm, or commodities climbing while equities cool — their ups and downs partially cancel inside the portfolio. The combined volatility ends up lower than the simple weighted average of the parts. That gap is the diversification benefit, and it is something close to a free lunch in a field that rarely offers one. You are not just averaging risk; you are letting offsetting movements shave it down. This is why the calculator does not estimate portfolio volatility by blending each class's volatility in proportion to its weight. Instead it uses a six-by-six correlation matrix that captures how each pair of asset classes has tended to move together or apart. Two portfolios with the same expected return can carry meaningfully different risk depending on how complementary their holdings are. A mix of moderately risky assets that behave differently from one another can be steadier than a portfolio concentrated in a single supposedly safe asset. The practical lesson is that adding a sleeve of something unfamiliar — real estate, a slice of international equity, a measured commodity position — is not necessarily adding risk. If it moves on a different rhythm than your core holdings, it can smooth the overall path even when that piece, viewed alone, looks more volatile.
Risk tolerance: what you can take versus what you can stand
Risk tolerance is really two separate questions wearing one label, and confusing them is a common source of regret. The first is your capacity to take risk — the objective room in your finances to absorb a loss without derailing your plans. Capacity grows with a long time horizon, a stable income, a healthy emergency fund, and goals that are flexible rather than fixed to a date. An investor with thirty years until retirement and steady earnings can ride out a deep drawdown that would be catastrophic for someone who needs the money next year. The second question is your willingness to take risk — the emotional reality of how you behave when a portfolio falls 30 percent and the headlines are grim. Willingness is psychological, not financial. An investor with enormous capacity may still panic and sell at the bottom, which permanently converts a temporary paper loss into a real one. The allocation that matters is the one you can actually hold through a bad stretch, not the optimal one on a spreadsheet that you abandon in a panic. The calculator turns these inputs into a model portfolio anchored on three risk profiles — conservative, balanced, and aggressive — each with a defined equity weight and a spread across defensive and diversifying assets. Your stated tolerance selects the starting point, and the other inputs adjust it. The honest practice is to set your allocation to the lower of your capacity and your willingness. If the numbers say you can afford 80 percent stocks but you know you would not sleep, dial it back. A slightly lower expected return that you can stick with beats a higher one you will flee. The right risk level is the one you will not flinch out of at the worst possible moment.
Age, horizon, and the glide path
Time horizon — the number of years until you need the money — is one of the most powerful inputs in the whole exercise, because it changes the character of risk itself. Over a single year, stocks can do almost anything, and a steep loss is entirely possible. Over many years, the range of outcomes narrows and the odds tilt toward growth, and just as important, a long horizon gives a portfolio room to recover from a bad patch before the money is actually spent. Volatility you will not have to sell into is far less dangerous than volatility you will. This is the logic behind a glide path. With a long horizon you can carry more equity, because you have the years to outlast downturns and let the higher expected return compound. As the goal approaches, the prudent move is to lower equity and lift the defensive sleeves, so a late crash cannot force you to sell growth assets at depressed prices right when you need the cash. The calculator builds this in: it starts from your risk model's equity weight, adds equity for longer horizons, and trims it as age rises, while raising a cash floor for short horizons and older investors. It is worth stating plainly what the glide path does not promise. A longer horizon improves the odds and widens your capacity to absorb swings, but it guarantees nothing — sequences of poor returns can and do persist, and the past is not a contract about the future. The glide path is a way of matching risk to the time you have to recover, not a prediction that stocks will reward patience on any given schedule. It is risk management across the calendar, and the calculator treats it as such.
The six asset classes and their roles
Each asset class plays a distinct role, and the calculator attaches an illustrative long-run nominal return and volatility to each — estimates for planning, not guarantees or forecasts. Stocks are the growth engine, assumed at roughly 7.5 percent return with 16 percent volatility; they drive most of a portfolio's long-term gain and most of its short-term anxiety. Equities can be split between domestic and international, with a default 70/30 home bias, so that part of your growth sleeve responds to economies and currencies beyond your own. Bonds, assumed near 3.5 percent return and 5.5 percent volatility, are the ballast. They generate income and tend to hold steadier than stocks, often providing a counterweight when equities fall. Cash, around 2.5 percent return and just 1 percent volatility, is the safety reserve — stable and liquid, but vulnerable to inflation over long stretches and best sized to near-term needs and a comfort buffer. Real estate, represented through REITs at about 6.0 percent return and 14 percent volatility, adds a different income stream and a partial inflation hedge, behaving neither quite like stocks nor quite like bonds. Commodities, near 4.0 percent return with a high 18 percent volatility, are not prized for their standalone return but for their tendency to move on a different rhythm — sometimes rising when inflation bites and equities struggle — which is exactly what makes a modest position useful for diversification. Crypto and alternatives carry the highest assumptions, roughly 12 percent return against an extreme 65 percent volatility. The high expected return reflects high uncertainty, not a promise, and the volatility means even a small slice swings hard. The calculator treats this sleeve as a satellite to be sized deliberately and never inflated by the glide path. Read every one of these numbers as a labeled estimate, useful for comparing mixes rather than predicting any year.
The three model portfolios
To give the glide path something concrete to build on, the calculator defines three base model portfolios, each spread across stocks, bonds, cash, real estate, commodities, and crypto. They represent three temperaments and three relationships with risk, and most investors will recognize themselves in one of them or somewhere along the line between two. The Conservative model holds about 30 percent stocks, 45 percent bonds, 15 percent cash, 5 percent real estate, 5 percent commodities, and no crypto. It is built for capital preservation and a smoother ride — suited to investors with a short horizon, a low willingness to endure swings, or a need to draw on the money soon. It accepts a lower expected return in exchange for shallower drawdowns, and it keeps a substantial liquid reserve so that ordinary market turbulence never forces an awkward sale. The Balanced model sits near 55 percent stocks, 28 percent bonds, 7 percent cash, 6 percent real estate, 3 percent commodities, and 1 percent crypto. It aims for meaningful growth while keeping a real defensive cushion, and it fits investors with a medium horizon and a moderate tolerance who want to participate in rising markets without being fully exposed to them. It is the middle path, and for many long-term savers it is a sensible default. The Aggressive model runs about 75 percent stocks, 10 percent bonds, 3 percent cash, 7 percent real estate, 3 percent commodities, and 2 percent crypto. It is designed for growth over a long horizon and for investors with both the capacity and the genuine willingness to endure large, sometimes frightening declines along the way. Notice that even here the defensive and diversifying sleeves are not zero, and crypto stays small — concentration is a risk in itself, and these models stay diversified by design rather than betting everything on the single highest-returning class.
Rebalancing: selling high and buying low on a rule
Once you set a target mix, markets immediately start pulling it out of shape. When stocks rally, your equity weight creeps above target and the portfolio quietly becomes riskier than you intended; when stocks fall, equity slips below target and the mix turns more conservative than your plan calls for. This wandering is called drift, measured here as each class's current percentage minus its target percentage. Rebalancing is the act of trimming what has grown beyond its target and topping up what has shrunk, restoring the intended structure. Rebalancing on a rule is one of the few disciplines that mechanically forces you to sell high and buy low. Selling the asset that has surged to fund the one that has lagged is emotionally backwards — it means lightening your winners and adding to your laggards — which is precisely why a rule helps. It removes the moment-by-moment judgment that so often leads investors to pile into whatever just went up. The calculator uses a tolerance band, 5 percentage points by default, and flags a rebalance only when some class drifts beyond that band, so you act when the mix has meaningfully changed rather than fussing over every small wiggle. The practical caveats matter. In a taxable account, selling appreciated assets can trigger capital gains taxes, and frequent trading can rack up costs, so rebalancing is not free. Sensible tactics include directing new contributions and dividends toward the underweight classes, rebalancing inside tax-advantaged accounts where sales are not taxed, and using a band rather than a calendar so you trade only when it counts. This calculator does not model taxes, fees, or specific securities — its dollar buy-and-sell figures are illustrative — so weigh the real-world friction against the benefit of getting your risk back in line before acting.
A worked example from start to finish
Consider Maya, age 45, investing for retirement about 20 years away, with a moderate risk tolerance and a growth goal. Her portfolio is worth 200,000 dollars. Today she holds 70 percent stocks (140,000), 10 percent bonds (20,000), 5 percent cash (10,000), 5 percent real estate (10,000), no commodities, and 10 percent crypto (20,000). At a glance she is heavily tilted toward equities and carries a crypto stake far larger than most plans would hold. Feeding her age, 20-year horizon, moderate tolerance, and growth goal into the glide path produces a target of 65 percent stocks, 22 percent bonds, 5 percent cash, 5 percent real estate, 2 percent commodities, and 1 percent crypto. The moderate risk model sets the starting equity weight at 55 percent; the longer-than-average horizon and the growth goal each nudge it upward to 65 percent, and the remaining 35 percent is spread across the defensive and diversifier sleeves in the model's own proportions, which leaves bonds as the dominant ballast and keeps crypto at the model's 1 percent. Comparing current to target class by class gives the drift, current percentage minus target percentage: stocks plus 5, bonds minus 12, cash flat, real estate flat, commodities minus 2, and crypto plus 9. With the default 5-point band, bonds and crypto have both drifted beyond tolerance — bonds far below target, crypto far above — which is enough to trigger a rebalance, while stocks sit right at the edge of the band. Turning the target percentages into dollars on her 200,000 portfolio gives stocks 130,000, bonds 44,000, cash 10,000, real estate 10,000, commodities 4,000, and crypto 2,000. Subtracting what she already holds yields the trade plan: sell about 10,000 of stocks and 18,000 of crypto, then use the 28,000 raised to buy roughly 24,000 of bonds and 4,000 of commodities, leaving cash and real estate untouched. The buys and sells net to zero because she is reshaping the same 200,000, not adding new money. The outcome is a portfolio still oriented toward growth, in keeping with her horizon, but with its equity concentration eased, its speculative crypto sleeve cut from a tenth of the portfolio to a measured 1 percent, and genuine ballast restored in bonds alongside a small commodity diversifier. If this were a taxable account, Maya would weigh the tax cost of selling appreciated crypto and might stage the trades or steer fresh contributions toward the underweight sleeves rather than selling everything at once.
Making sense of the risk and diversification scores
The calculator distills two single numbers from your mix to make comparison easier. The risk score runs from 0 to 100 and is derived from the portfolio's estimated volatility, scaled so that roughly 1 percent volatility maps to 0 and about 25 percent maps to 100. It is then labeled across five bands — Very Conservative, Conservative, Moderate, Aggressive, and Very Aggressive. A higher score means a wider expected range of outcomes, both up and down, and a bumpier path. Crucially, this volatility comes from the correlation matrix, not a simple weighted average, so a well-diversified mix can earn a lower risk score than the riskiness of its individual parts would suggest. The diversification score, also 0 to 100, measures how concentrated the portfolio is using a Herfindahl-style index of the weights. Spreading money more evenly across more asset classes raises the score; piling most of the portfolio into a single class lowers it. Holding both domestic and international equity earns a small additional credit, recognizing that geographic spread adds resilience. A high diversification score signals that no single bet dominates your outcome. What these scores do not do is equally important. The risk score is not a probability of loss or a worst-case figure; it summarizes volatility from illustrative assumptions, and real markets routinely deliver moves outside any tidy band. The diversification score measures spread across classes, not quality — it cannot tell you whether your specific funds are sound, low-cost, or appropriate, and a portfolio can look diversified by class while being concentrated in a single sector or stock underneath. Treat both numbers as quick gauges for comparing one mix against another and for spotting obvious imbalances, not as verdicts. They are dashboard lights, not a guarantee about the road ahead.
Pitfalls that quietly derail a good allocation
The most frequent error is chasing past returns — pouring money into whatever asset class or fund just had a spectacular run. Performance tends to revert, and last year's leader is often next year's laggard, so buying after a surge frequently means buying high right before a cooldown. A disciplined allocation does the opposite, anchoring to a target and rebalancing toward what has lagged rather than piling into what has soared. Over-concentration is the next trap, and it shows up most often in two forms. One is letting a single winning position swell until it dominates the portfolio and quietly raises your risk far beyond what you intended. The other is an outsized crypto or alternatives stake; with assumed volatility near 65 percent, even a modest slice swings hard, and an oversized one can swamp every other decision you have made. The calculator deliberately keeps this sleeve small and never lets the glide path inflate it — a reminder that a high expected return reflects high uncertainty, not a promise. Ignoring international equity is a subtler mistake. A home-only portfolio bets everything on one country's markets and currency, forgoing the smoothing that comes from owning economies that move on different cycles. The default 70/30 home bias is a starting point for keeping a foot in both. Neglecting rebalancing is equally costly: a portfolio left untended drifts steadily toward higher risk in long bull markets, so the very investors who feel safest are often the most exposed precisely when a downturn arrives. Finally, do not mistake these figures for guarantees. Every return and volatility number here is an illustrative estimate, the correlations can shift, and the tool models neither taxes nor fees nor specific securities. Use it to structure a sensible, diversified plan and to keep that plan in line over time — then judge real results against real markets, not against the smooth averages on the screen.
Frequently asked questions
What does asset allocation actually mean?
Asset allocation is how you divide your money among different types of investments — here, six classes ranging from stocks and bonds to cash, real estate, commodities, and crypto/alternatives. Because these classes behave differently in different conditions, the mix you choose is usually the biggest driver of how your portfolio's risk and return turn out. This calculator helps you see the trade-offs of a given split and compare it against a target built for your profile.
How is the suggested target mix calculated?
The tool starts from one of three model portfolios chosen by your risk tolerance, then applies a glide path: it adds equity weight for longer horizons, trims equity as age rises, and tilts the result toward your goal, from capital preservation up to aggressive growth. Whatever isn't in equities is spread across the defensive and diversifier sleeves in the model's own proportions, with a cash floor that grows for short horizons and older investors, while crypto is never increased by the glide. Final weights are rounded so they total exactly 100%.
Are the return and volatility numbers a guarantee of what I'll earn?
No. The figures for each class are illustrative long-run estimates used for planning math, not forecasts, promises, or advice. Real markets vary widely year to year and can differ substantially from these assumptions, so treat the projected return and volatility as a rough planning lens rather than an expected outcome.
How often should I rebalance, and what is a drift band?
Rather than a fixed calendar, this tool uses a drift band — by default 5 percentage points. Drift is simply your current weight in a class minus its target weight, and when any class drifts beyond the band, that's the signal to rebalance back toward target. Checking periodically and acting only when a band is breached keeps you from trading on every small market move.
Do I need to hold crypto or commodities?
No. Both are optional diversifiers, not requirements, and the suggested mix never inflates the crypto/alternatives sleeve through the glide path. If you do include them, keeping the allocation small limits how much their high volatility — especially crypto's — can swing your overall portfolio.
Why split stocks into domestic and international?
Equities can be divided between home-country and international holdings, with a default 70/30 home bias. Spreading equity across regions means your stock sleeve isn't tied to a single market's fortunes, and holding both earns a small credit in the diversification score. The split is a preference you can adjust, not a rule.
Does this calculator account for taxes and fees?
No. All figures are pre-tax, pre-fee planning estimates, and the tool does not model specific securities or transaction costs. When you rebalance in a real account, selling can trigger taxes and trading may incur fees, so factor those in separately before acting on the buy and sell amounts shown.