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DALBAR's Prudent Asset Allocation Worksheet

Prudent Asset Allocation ("PAA") is an overarching investment strategy that separates investor's assets into two channels and manages the movement from one to the other in a way that maximizes the safety of the first channel (the Preservative component) and maximizes return in the second (the Growth component). In this way investors earn as much as is feasible without putting their wellbeing at risk.

The key benefits of PAA are:

  •  A balance of Preservative and Growth components that is specific to investor's current situation.
  •  Elimination of concerns of making ends meet.
  •  Elimination of fears of market ups and downs.
  •  Maximum return on long term assets.
  •  Continuously adapting to changes in personal situation and investment markets.
  •  Ability to always wait for market recovery before making withdrawals.

The PAA Worksheet presented below performs calculations that determine optimum allocation of assets to the Preservative component to cover expenses, planned expenditures, emergencies and other unexpected events.

Resources shown provide detailed background on PAA and explanations of the principles employed and their historical basis.

Learn More

Click here for more information on DALBAR's PAA including:

  •  Case Study
  •  A Best Interest Approach to Asset Allocation
  •  Investor Guides to PAA

Enter approximate or estimated amounts in thousands for the years they are most likely to take place

Current Balances
 Bank Deposits
 Government Bonds
 Other Protected Assets
Enter Year:  
2022
2023
2024
2025
2026
Age: 
Additions to Balances
 Income
 Expected Payments
 Other Additions
Planned Uses of Funds
 Living Expenses
 Major Purchases
 Taxes
 Other Expenditures
Recap
Current Balances
Additions to Balances
Planned Uses of Funds
Actions
Transfer from Growth
Addition to Growth
 Inflation Adjusted Return %
 Required Growth Component for Retirement