What is asset allocation?

InvestingWarren TeamPublished April 25, 2026

Quick answer

Asset allocation is the split of your portfolio between major asset classes, stocks, bonds, and cash. A common rule: subtract your age from 110 to get your stock %. So a 30-year-old might be 80% stocks, 20% bonds.

Sample asset allocations by age.

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions. Read our disclaimers.

All questions

Get an answer built on your own numbers

Warren reads your accounts, then answers questions like this one with your real income, taxes and goals in mind.

Try Warren Free See a demo