Build a target allocation from age and risk tolerance, and see the return and risk it implies.
Age sets a baseline equity weight, but the horizon matters more: money needed within five years should not be heavily in equities whatever your age. Risk tolerance then adjusts the result either way. Time horizon rather than age is the real driver of allocation, which is why a 30-year-old saving for a house next year should be conservatively positioned.
Asset Allocation
Equity % ≈ 110 − age, adjusted for risk tolerance and time until the money is needed
Equity % ≈ 110 − age, adjusted for risk tolerance and time until the money is needed Age sets a baseline equity weight, but the horizon matters more: money needed within five years should not be heavily in equities whatever your age. Risk tolerance then adjusts the result either way.
Time horizon rather than age is the real driver of allocation, which is why a 30-year-old saving for a house next year should be conservatively positioned.
This calculator takes 4 inputs: Your age, Risk tolerance, Portfolio value, Years until you need the money. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.