The goal of this project is for you to develop an asset allocation model for your own retirement portfolio. I’ve created an Asset Allocation Worksheet (Excel file) that you’ll find next to this...

The goal of this project is for you to develop an asset allocation model for your own retirement portfolio. I’ve created an Asset Allocation Worksheet (Excel file) that you’ll find next to this assignment on Canvas.

For this project, we’re using the Lindenwood 403b plan investment options. There is a PowerPoint presentation describing each of these investments (we already went through this in class) that is also posted on Canvas next to this assignment.

Step One:
Decide which funds you plan to include in your portfolio. On the worksheet, answer the questions: “Why did you pick the funds you chose? Why did you choose not to pick others?” You’ll notice there’s a space next to each fund to put your answer. It’s small, which will help the expressives focus and be concise when responding.

Step Two:
Decide how to allocate your money among the funds you’ve chosen.

• There are a number of different ways to do this, but a good resource is to start with a model and then modify it to reflect your risk tolerance levels and the funds you prefer. Here are some sites you may want to try, but there are many others out there.

https://investor.vanguard.com/calculator-tools/investor-questionnaire/(Links to an external site.)

https://www.alexbrown.com/jontdayton/resources/calculators/asset-allocator(Links to an external site.)

http://fc.standardandpoors.com/ondemand/analytics/compute.vm?hnd=36&client=adp(Links to an external site.)

https://www.calcxml.com/do/inv01(Links to an external site.)

https://smartasset.com/investing/asset-allocation-calculator#rqHZGCqqWj(Links to an external site.)

https://www.bankrate.com/calculators/retirement/asset-allocation.aspx(Links to an external site.)

• On the worksheet, enter your allocations in the yellow column. Don’t mess with the rest of it. Two things should happen as you change the allocations: the pie chart will change, and so will the expected return. As you’re making changes, noticed how that affects the expected return.


• When your model is finished, find the space on the worksheet that asks: “How did you come up with this model for allocation? Explain your process.” Do that.