Enter Portfolio Planning Inputs
Example Data Table
This sample shows how the calculator translates planning assumptions into a suggested allocation and projected retirement readiness.
| Age | Retire At | Risk | Current Portfolio | Monthly Contribution | Income Need | Suggested Mix | Projected Value |
|---|---|---|---|---|---|---|---|
| 40 | 65 | Moderate | $250,000 | $1,500 | $85,000 | 77% / 10% / 6% / 7% | $2,621,390.47 |
| 52 | 67 | Conservative | $420,000 | $1,200 | $70,000 | 51% / 35% / 10% / 4% | $1,375,748.43 |
| 33 | 65 | Aggressive | $110,000 | $1,800 | $95,000 | 77% / 10% / 3% / 10% | $3,644,001.98 |
Formula Used
1) Recommended stock weight: Stock % = clamp(115 - age + risk shift + horizon adjustment, 25, 85)
2) Bonds: Bond % = 100 - Stock % - Cash % - Alternatives %
3) Expected portfolio return: weighted average of each asset-class return assumption.
4) Real return: ((1 + nominal return) / (1 + inflation)) - 1
5) Future portfolio value: FV = PV(1+r)^n + PMT(((1+r)^n - 1)/r)
6) Withdrawal-based target: Income Gap / Safe Withdrawal Rate
7) Annuity-based target: Income Gap × ((1 - (1+r)^-t) / r)
8) Required corpus: larger of the withdrawal target or annuity target, plus discounted legacy reserve.
How to Use This Calculator
- Enter your current age and the age you expect to retire.
- Select a risk tolerance that reflects how much volatility you can handle.
- Fill in current savings, monthly contributions, and desired annual retirement income.
- Add pension, rental, or social benefits under other annual retirement income.
- Adjust inflation, withdrawal rate, and return assumptions to match your planning view.
- Click Calculate Allocation to see the recommended mix and readiness status.
- Use the funding ratio, contribution gap, and projected value to refine your plan.
- Export the result as CSV or PDF for reporting or advisor review.
FAQs
1. What does this calculator actually estimate?
It estimates a suggested asset mix, expected portfolio growth, retirement funding target, contribution gap, and whether your current plan appears ahead, near, or behind target.
2. Why does age affect the stock allocation?
Age changes time horizon. Longer horizons can usually absorb more volatility, while shorter horizons often require more bonds and cash to reduce sequence risk.
3. What is the funding ratio?
Funding ratio equals projected retirement portfolio divided by required corpus. Above 100% means the plan covers the target. Below 100% means a likely shortfall.
4. Why include both withdrawal and annuity targets?
Using both methods gives a more balanced view. One reflects a sustainable withdrawal rule, while the other values income needs across the full retirement period.
5. Can I change expected returns?
Yes. The calculator lets you set stock, bond, cash, and alternatives return assumptions, which helps you test optimistic, base, and conservative planning scenarios.
6. Does this replace professional financial advice?
No. It is a planning aid. Taxes, account types, fees, personal liabilities, and market behavior can materially change the best portfolio decision.
7. What does the rebalance band mean?
It shows how far an asset class may drift from target before rebalancing. Smaller bands keep allocations tighter, while larger bands reduce trading frequency.
8. Should I include emergency cash here?
Usually no. Emergency funds are better tracked separately so retirement allocation decisions focus on long-term investing, not near-term spending needs.