What is asset allocation?

Asset allocation is how you divide your portfolio among different asset classes like stocks, bonds, and cash. It's the single biggest driver of long-term returns and risk. A common starting point is subtracting your age from 110 to get your stock percentage (e.g., age 30 = 80% stocks).

What is a Monte Carlo simulation for investing?

A Monte Carlo simulation runs thousands of randomized market scenarios to estimate the probability of different portfolio outcomes. Instead of assuming a single average return, it shows the range of possible results, helping you understand best-case, worst-case, and likely scenarios.

How many ETFs do I need in a portfolio?

A well-diversified portfolio can be built with as few as 2-4 ETFs: a total market stock fund, an international fund, and a bond fund. Adding more can fine-tune exposure but increases complexity. The key is broad diversification, not a large number of holdings.

What is an expense ratio and why does it matter?

An expense ratio is the annual fee charged by a fund, expressed as a percentage of assets. A 0.03% expense ratio costs $3/year per $10,000 invested, while 1% costs $100. Over 30 years, high fees can reduce your portfolio value by 20-30%. Index funds typically have the lowest expense ratios.

Asset Allocation

Portfolio Builder

Build your own investment mix, see how it might perform under different market conditions, and visualize 30 years of potential growth.

Investment Settings

Start Principal

Monthly Added

Reinvest Dividends (DRIP)Add payouts back to your balance

Active Holdings

100.0%

Ticker

Vanguard Total Stock Market

Weight %

Return %

Yield %

Ticker

Vanguard Total Intl Stock

Weight %

Return %

Yield %

Ticker

Vanguard Total Bond Market

Weight %

Return %

Yield %

Data Notice: Portfolio assumptions in this tool come from our curated dataset and any custom values you enter. You can edit existing fields or add custom data at any time. You are responsible for validating all inputs, assumptions, and investment decisions.

Quick Add:

Wealth Projection Output

Total CAGR

8.3%

Current Yield

2.1%

Monthly Passive Income

$17

At Start Principal

Year 30 Projected Income

$335 / MO

Growth & Income Projection

30-Year Growth Projection

Portfolio Value

Annual Yield

How to Read This Chart

The solid line shows your total portfolio value growing over time. The dashed line shows how much income (dividends) you'd earn each year. With your current mix, you'd earn about 2.09% in dividends annually.

Asset Mix

Holdings3

Portfolio Health Check

Looking Good

Sector Breakdown

Portfolio Stress Simulator

Sector Shocks

Others0%

Technology0%

Financials0%

Healthcare0%

Industrials0%

Government0%

Asset Shocks

VTI0%

VXUS0%

BND0%

Adjust sliders or select a preset to simulate

Portfolio Builder

Investment Settings

Active Holdings

Growth & Income Projection

How to Read This Chart

Portfolio Health Check

Sector Breakdown

Portfolio Stress Simulator

Sector Shocks

Asset Shocks

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