How to Use This Calculator
- 1
Enter Age & Allocation Targets
Input your current age, target retirement age, current and target stock percentages, other asset percentage, and choose a glide path style (Early & Steady, Even Pace, or Stay in Stocks Longer).
- 2
Review Results
See Avg. Annual Stock Change, Current Risk Score, and Target Risk Score cards. The Insights panel shows current/target allocations, years to retirement, total stock reduction, risk score change, and glide path style. The chart and table show year-by-year allocations.
Example Calculation
A 35-year-old investor wants to reduce stock allocation from 80% to 40% by retirement at age 65, with 10% in alternative assets, using a linear glide path.
Current Age (years)
35
Target Retirement Age (years)
65
Current Stocks Percentage (%)
80
Target Stocks Percentage (%)
40
Additional Assets (%)
10
Glide Path Style
Linear
Results
Avg. Annual Stock Change
-1.33% per year
Current Risk Score
8.0/10
Target Risk Score
4.0/10
Insights card shows 80% stocks / 10% bonds / 10% other current allocation, 40% stocks / 50% bonds / 10% other target, 30 years to retirement, 40pp total stock reduction, 8.
Tips
1.33% Annual Reduction Means 60% Stocks at Age 50
At the midpoint (age 50), the linear glide path puts you at 60% stocks / 30% bonds / 10% other. The conservative path reaches 51.7% stocks by 50 (shifting faster early), while the aggressive path is still at 70% stocks at 50 (shifting more in the final years).
Risk Score Drops 4 Points — From Growth to Balanced
An 8.0/10 risk score (80% stocks) is growth-oriented. By retirement at 4.0/10 (40% stocks), you're in a balanced-conservative position. Each 10% reduction in stocks lowers the risk score by 1 point. To reach 3.0/10, you'd target 30% stocks instead.
10% in Alternatives Stays Constant — Bonds Absorb the Shift
The 10% other assets allocation remains fixed throughout. As stocks drop from 80% to 40%, bonds rise from 10% to 50% — a 40pp increase that mirrors the 40pp stock decrease. Increasing alternatives to 15% would reduce the bonds range to 5-45%.
Conservative Path Front-Loads De-Risking for Sequence Risk
The conservative (Early & Steady) path uses a square-root curve that shifts to bonds faster in early years. By year 15, you're already at 51.7% stocks vs 60% with linear. This protects against sequence-of-returns risk — poor returns in the decade before retirement hurt the most.
Plan Your Stock-to-Bond Shift Over 30 Years
The Asset Allocation Glide Path Calculator maps how your portfolio should transition from growth-oriented to conservative as you approach retirement.
A 35-year-old with 80% stocks targeting 40% at retirement (age 65) reduces stocks by 1.33% per year over 30 years — dropping their risk score from 8.0/10 to 4.0/10.
Bonds rise from 10% to 50%, absorbing the entire shift while 10% in alternatives stays constant.
The Glide Path Formula
The calculator uses a power curve to model different de-risking speeds:
Stocks at Year t = Current Stocks + (Target - Current) × (t / Years)^exponent
Bonds = 100% - Stocks - Other Assets
Risk Score = (Stocks% / 100) × 10
Annual Stock Change = |Current - Target| / Years to Retirement
Exponent values control the curve shape:
Conservative (Early & Steady): exponent = 0.5 (front-loaded)
Linear (Even Pace): exponent = 1.0 (uniform)
Aggressive (Stay in Stocks): exponent = 2.0 (back-loaded)
Example: Age 35 to 65 Linear Glide Path
35-year-old, 80% stocks, 40% target at retirement, 10% other assets, linear style:
| Metric | Value | Context |
|---|---|---|
| Avg. Annual Stock Change | -1.33%/year | Even pace — equal adjustment each year |
| Current Risk Score | 8.0/10 | High risk — growth-oriented |
| Target Risk Score | 4.0/10 | Moderate — balanced-conservative |
| Current Allocation | 80/10/10 | Stocks / Bonds / Other |
| Target Allocation | 40/50/10 | Stocks / Bonds / Other |
| Midpoint (Age 50) | 60/30/10 | Exactly halfway between start and target |
| Total Stock Reduction | 40pp | Over 30 years |
| Risk Score Reduction | 4.0 points | From growth to balanced |
The linear path creates a steady 1.33% annual reduction.
At the midpoint (age 50), the portfolio is exactly 60% stocks — halfway between the 80% start and 40% target.
The conservative path would already be at 51.7% stocks by age 50, while the aggressive path would still be at 70%.
Three Glide Path Styles Compared
All three styles start at 80% stocks and end at 40%, but the path between differs significantly.
At the midpoint (age 50, year 15): Conservative reaches 51.7% stocks (already shifted 70% of the way), Linear is at 60.0% (exactly 50% shifted), and Aggressive is at 70.0% (only 25% shifted).
Choose conservative if you prioritize sequence-of-returns risk protection, linear for simplicity, or aggressive if you want maximum growth potential before the final decade.
Frequently Asked Questions
What is an asset allocation glide path?
A plan for gradually shifting your portfolio from stocks to bonds as you approach retirement. Starting at 80% stocks at age 35, a linear glide path reduces stocks by 1.33% per year to reach 40% stocks at age 65. This systematic de-risking protects accumulated wealth while maintaining growth potential during the accumulation phase.
How does the risk score work?
Risk score = (stock percentage / 100) × 10. So 80% stocks = 8.0/10 (high risk, growth-oriented) and 40% stocks = 4.0/10 (moderate risk, balanced). The score provides a quick reference for portfolio aggressiveness. Scores above 7 are growth-oriented, 4-7 are balanced, below 4 are conservative.
What's the difference between the three glide path styles?
All three start at 80% stocks and end at 40%. Linear reduces stocks evenly (1.33%/year). Conservative (exponent 0.5) front-loads the reduction — reaching 51.7% stocks at the midpoint vs 60% for linear. Aggressive (exponent 2.0) back-loads it — still at 70% stocks at the midpoint. Conservative is better for sequence risk protection; aggressive maximizes growth potential.
What is sequence-of-returns risk?
The danger that poor market returns just before or early in retirement can permanently deplete your savings. A 30% market drop at age 63 with 80% in stocks is devastating — it wipes out 24% of your portfolio. With the glide path's 42.7% stocks at age 63, the same drop only impacts 12.8%. Front-loading de-risking (conservative path) provides the most protection.
Why keep 10% in other assets?
Alternative assets (REITs, commodities, gold) provide diversification beyond the stock/bond mix. They often have low correlation with both stocks and bonds, which can reduce overall portfolio volatility. The 10% stays constant throughout the glide path while the stock-to-bond shift handles the primary de-risking.
How often should I adjust my allocation?
Annual rebalancing aligns with most glide path calculations. With a 1.33% annual stock reduction, you'd sell enough stocks and buy enough bonds each year to match the schedule. More frequent adjustments (quarterly) add trading costs with minimal benefit. Less frequent (every 2-3 years) means larger trades but still achieves the target by retirement.