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Directions (See the Read Me sheet for more details) 35.0% Overall Asset Allocation
30.0%
Edit cells that are shaded in yellow or striped yellow to see resulting "Rebalancing Action." Values for the "Current Allocation"
25.0%
column come from Imported Data worksheet. (Note: The Detailed Asset Class names must match the names used in the
20.0% Target
Asset Class Info worksheet. Also, you can mouse over cells with red comment indicators to read comments.
15.0% Current
10.0%
Rebalancing Parameters Enter desired change in portfolio value 5.0%
0.0%
Trigger Factor: 10.0% Portfolio Value Change (optional) $0 Foreign US Hard US Bonds Foreign Cash
Adjustment Factor: 0.0% Equities Equities Assets Bonds
Detailed Asset Target Overall Major Asset Target Current Current Current Percent Rebalancing Adjusted Adjusted Adjusted
Class Percent Percent Class Amount Allocation Percent Overall Difference Action Allocation Percent Overall
Asian Stocks 9.00% ### Foreign Equities $9,000 $10,780 10.78% 31.0% +1.78% Remove $1,933 $8,848 8.85% 29.0%
European Stocks 12.00% Foreign Equities $12,000 $12,382 12.38% +0.38% $12,382 12.38%
Emerging Mkts 8.00% Foreign Equities $8,000 $7,812 7.81% -0.19% $7,812 7.81%
Lg Cap Growth 12.00% ### US Equities $12,000 $12,341 12.34% 26.7% +0.34% $12,341 12.34% 26.7%
Lg Cap Value 4.00% US Equities $4,000 $4,088 4.09% +0.09% $4,088 4.09%
Lg Cap Blend 0.00% US Equities $0 $0 0.00% +0.00% $0 0.00%
Mid Cap Growth 0.00% US Equities $0 $0 0.00% +0.00% $0 0.00%
Mid Cap Value 0.00% US Equities $0 $0 0.00% +0.00% $0 0.00%
Mid Cap Blend 5.00% US Equities $5,000 $5,026 5.03% +0.03% $5,026 5.03%
Sm Cap Growth 0.00% US Equities $0 $0 0.00% +0.00% $0 0.00%
Sm Cap Value 5.00% US Equities $5,000 $5,233 5.23% +0.23% $5,233 5.23%
Sm Cap Blend 0.00% US Equities $0 $0 0.00% +0.00% $0 0.00%
Micro Cap 0.00% US Equities $0 $0 0.00% +0.00% $0 0.00%
Gold 4.00% ### Hard Assets $4,000 $8,172 8.17% 13.7% +4.17% Remove $4,529 $3,643 3.64% 12.7%
Commodities 5.00% Hard Assets $5,000 $5,340 5.34% +0.34% $5,340 5.34%
REITs 4.00% Hard Assets $4,000 $207 0.21% -3.79% Add $3,468 $3,675 3.68%
Domestic Bonds 1.00% ### US Bonds $1,000 $3,846 3.85% 19.2% +2.85% Remove $3,090 $756 0.76% 19.7%
Municipal Bonds 11.00% US Bonds $11,000 $11,276 11.28% +0.28% $11,276 11.28%
Real Ret. Bonds 8.00% US Bonds $8,000 $4,097 4.10% -3.90% Add $3,569 $7,666 7.67%
Foreign Bonds 6.00% 6.0% Foreign Bonds $6,000 $6,244 6.24% 6.2% +0.24% $6,244 6.24% 6.2%
Cash 1.00% 6.0% Cash $1,000 $905 0.90% 3.2% -0.10% $905 0.90% 5.7%
Short Term CDs 5.00% Cash $5,000 $2,250 2.25% -2.75% Add $2,515 $4,765 4.76%
Total 100.00% 100,000 100,000 $100,000 100.00%
Edit cells that are shaded in yellow or yellow stripes to set up each scenario and to see the effects on the portfolio. Values fo
(Note: The Detailed Asset Class names must match the names used in the Asset Class Info worksheet.)
s on the portfolio. Values for the "Current Allocation" column come from Imported Data worksheet.
sheet.)
bal Hyper inflation Scenario 2: 40% Dollar Crash Scenario 3: Global Flu Pandemic
Major Asset Class Table Allocation Percent Target Portfolio breakdown based on reaction to macroeconomic factors
Foreign Equities $30,975 31.0% 29.0% Inflation Breakdown Dollar Breakdown World GDP Breakdown
US Equities $26,689 26.7% 26.0% Inflation Neutral 57.7% Dollar Neutral 22.4% GDP Neutral 8.2%
Hard Assets $13,719 13.7% 13.0% Favors Inflation 17.8% Favors Strength 26.7% Favors Growth 63.2%
US Bonds $19,220 19.2% 20.0% Favors Deflation 24.5% Favors Weakness 50.9% Favors Slowdown 28.6%
Foreign Bonds $6,244 6.2% 6.0% 100% 100% 100%
Cash $3,155 3.2% 6.0%
$100,000 100.0% 100.0%
To populate this sheet with Quicken data, create a Portfolio Value and Cost Basis Report in Quicken. Select the Export-
A4 below and paste the data from the Quicken report into this sheet. Do not insert or remove rows from this sheet or the na
the Quicken report to import data from other software packages.
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TOTAL Investments 78,459.93 100,000.00
cken. Select the Export->copy option at the top of the report to copy the report to the Windows Clipboard. Position the cursor on cell
s from this sheet or the name/amount extractions will fail. See the Read Me worksheet for complete instructions. You can also mimick
Clipboard. Position the cursor on cell
ete instructions. You can also mimick
THE DATA ON THIS SHEET IS AUTO-GENERATED FROM THE IMPORTED DATA S
100000
Portfolio Asset Allocation Tool - Read Me
A tool by Random Walk Ventures, LLC. Contact: info@flexibleRetirementPlanner.com
The author makes no warranty about the accuracy of data and/or calculations presented in this workbook
If you find an error, make improvements, or have a question, please let me know.
This spreadsheet is free to use and distribute. All rights reserved by the author.
Good Luck!
This workbook helps automate the process of determining the current asset allocation of an investment po
actions are required to rebalance the portfolio to a user defined target allocation
The embedded portfolio rebalancing tools provided in the latest versions of Quicken and MS Money work reason
built in asset classes are adequate for your needs. Unfortunately, the built in classes are often fairly limited and
modified. Also, some securities are not correctly classified by these software packages. As a workaround, you c
the form of a list of securities and current balances for each security (for Quicken, use the Portfolio Cost Basis a
manage the security to asset class associations in this workbook.
Be sure to look for the "Comments" placed in various cells in this workbook. If you mouse-over a cell that
the comment will be displayed. Notice the small red triangle in the top right corner of the cell.
1) In Quicken, create a Portfolio Value and Cost Basis report. Be sure to include all accounts and securities
2) Select the import or copy option at the top of the Quicken report to copy the entire report to the Windows clip
Data" worksheet and paste the data from the Quicken report into this spreadsheet.
3) Go to the "Asset Class Info" worksheet and verify that the "Major Asset Class Table" on that sheet is suita
or add or remove items. Be sure to see the instructions on that table for help with adding or removing rows.
4) Also on the "Asset Class Info" sheet, verify that the "Detailed Asset Class Table" on that sheet is suitable f
or remove items. Again, be sure to see the instructions on that table for help with adding or removing rows from
5) Next, update the Security Table on the Asset Class Info worksheet with the information on the securities in
in this table to enter the name of a security in your portfolio, as well as asset class information. Each security c
columns for asset classes 7-10 are hidden to reduce clutter). You'll know you've set things up correctly if the Q
computed by adding up all the fractional acounts in the security table. HINT: You can copy and paste the securi
6) Select the "Rebalance" worksheet and verify the asset class names in the "Detailed Asset Class"
column against any changes you made to the "Detailed Asset Class" Table on the Asset Class Info
worksheet.
7) Now you can use the "Rebalance" worksheet to specify target allocations and see what actions are
needed to rebalance the portfolio
If you use another tool to manage your investments, you can easily import the data from that software into
needs a list of security names as well as a current balance for each security. If you are not importing from Q
entry as the last line of the security list that gives the total balance for the portfolio. Finally, the Cost Basis
ool - Read Me
tirementPlanner.com
ed in this workbook
he information on the securities in the portfolio you imported from Quicken. Use each row
class information. Each security can be allocated among up to 10 asset classes (the
've set things up correctly if the Quicken Import Total value equals the portfolio value that's
You can copy and paste the security names off the "Quicken Data" sheet .
he data from that software into the "Imported Data" worksheet. This worksheet
. If you are not importing from Quicken, you need to create a special TOTAL Investments
ortfolio. Finally, the Cost Basis column is not used.
Portfolio Asset Allocation Tool - Version History
1) Added logic on rebalance sheet to handle situation where ending portfolio value turns out
different from current value because rebalancing triggers are used
1) Added column to asset class info for target allocation per major asset class. Also, changed the
graph on the Rebalancing sheet into bar graph to show target vs current
2) Toned down formatting by slimming table borders and changing bright yellow to light yellow and
some other formatting stuff
Version 1.2 (January 6, 2006)
1) Added new table on Asset Class Info sheet to show portfolio allocation based on expected
performance under various macroeconomic conditions.
2) Made some small updates to the ReadMe sheet and various comments
Version 1.1 (January 5, 2006)
1) Fixed problems with "Additional Investments on Rebalance sheet. Removed Additional
Investments row from rebalancing table
2) Fixed weird rounding bug in portfolio vs quicken total comparison. Error was shown incorrectly
when quicken portfolio total ended in even dollar amount but sum of securities was 1 penny
higher.
3) Fixed bug in formula in major asset class column on rebalance sheet
4) Reformatted overall percent calculation on rebalancing sheet so that lines between major asset
classes will auto-draw
5) Added overall add/remove action in totals area of rebalancing action column
1) Fist versioned release. Based on earlier portfolio rebalancing tool that worked off security type
import from Quicken.
tory
This sheet contains some sample data that you can use in the "Quicken Data" Sheet to restore it to the original values. You ca
Quicken Data worksheet.
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TOTAL Investments 78,459.93 100,000.00
ore it to the original values. You can copy from Cells A2 to C22 to get simulated data to paste onto the