i What this calculator does
Asset allocation is the largest single driver of how a portfolio behaves. The split between equities, bonds and cash explains far more of the outcome over time than the choice of individual holdings within each bucket.
This builds a starting allocation from horizon and risk tolerance, then splits the equity portion between local and offshore. If the money sits in a retirement fund, Regulation 28 caps offshore at 45% and equities at 75%, and the calculator applies those.
This calculator is for educational purposes only. Results are estimates and may vary depending on market conditions, spreads, commissions, platform settings, and exchange rates. It should not be considered financial advice.
How to use the Asset Allocation Calculator
Every field has a working default, so the calculator produces a result the moment the page loads. Replace the defaults with your own figures and the output updates when you press the button.
- 1. Your Age
- 2. Years Until You Need the Money
- 3. Risk Tolerance
- 4. Amount to Allocate (R)
- 5. Where the Money Sits
The result panel reports:
- ' + h.label + '
Alongside the headline figures, the calculator reports local equity, offshore equity, defensive total, horizon. Those are the numbers that usually explain why the headline result came out where it did.
The breakdown below the result shows every step of the arithmetic, so you can check the figure rather than trust it. The formula panel names each input as it is used, which is useful if you want to reproduce the calculation in a spreadsheet.
Frequently asked questions
Is the hundred-minus-age rule useful?
It is a starting point and nothing more. It ignores the horizon, the risk tolerance and whether the money is needed at retirement or thirty years after it. This calculator uses the horizon directly, because that is what actually determines how much volatility you can absorb.
How much offshore exposure should a South African hold?
There is no single answer, and it depends on where your liabilities are. Someone retiring in South Africa with rand expenses needs rand assets; someone planning to emigrate or with children abroad needs more offshore. Inside a retirement fund the cap is 45% regardless.
Does Regulation 28 apply to my tax-free savings account?
No. It applies to retirement funds: pension, provident, preservation funds and retirement annuities. A tax-free savings account and an ordinary brokerage account have no such limits, which is why global exposure usually sits there.
Should the allocation change as I get older?
Gradually, as the horizon shortens rather than as a birthday passes. The relevant variable is how long the money has to recover from a fall, and that shortens every year whether or not you adjust for it.
What counts as defensive?
Bonds, income funds, money market and cash. With the repo rate at 7.25% the defensive portion currently earns a meaningful return, which is not always the case and changes the cost of holding it.
Where do property and commodities fit?
Usually inside the equity bucket, since listed property and resource shares behave more like equities than like bonds. Holding them as separate targets is reasonable if you want to control their weight explicitly.
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