This is basically a self explanatory file build in Excel 5 for Windows used to help you allocate your money. It is intended to be used for money not in a retirement account however similar logic could be used for your retirement nestegg. There are 6 simple pull down options consisting of 3 variables each. Simply access the option that best fits your situation at the present time.
They consist of your AGE, Net Worth and Annual Income all self explanatory. Risk Tolerance, Stock Market Optimism and Interest Rate Optimism are judgement variables that will also be unique to you.
Risk Tolerance is based mainly on time you expect to be invested (in months and years) and your annual income. The more money you make and the longer the time frame, the more you can risk, generally speaking.
(The greater your Net Worth, the less risk you should need to take).
Stock Market & Interest Rate Optimism are judgement calls which require you to be atuned to the market. The higher you think the market is to its worth, the less optimisic you may be to its immediate future performance.
A pie chart is also shown to graphically show the percentage allocation.
This should be used as a "rule of thumb" or "guide" to help determine for yourself as to how much you should put into the Stock Market, Bond Market and Money Market or Cash equivalent accounts as any given time.
