How should you invest your savings?
How this calculator works
If you are saving money for any purpose, the Best-Invest calculator will help you decide how to invest it. With a specific goal in mind, such as retirement, buying a home, or attending college, think about the questions below.
Normal allocations reflect long-term historical trends. Value-adjusted percents are lower than normal if U.S. stocks are over-valued (expensive), higher if they are under-valued (a bargain). To learn more, read Finding Value.
If some savings are to be spent this year, the calculator assigns a suitable portion to cash. To simplify a portfolio, you could invest the total for U.S. and International stocks in a global stock-index fund, and the total for long-term and short-term bonds in a broad index of intermediate bonds. See Basic Portfolios for some ideas.
The predicted return applies to the next 12 months. It is based on U.S. historical data and assumes an inflation rate equal to the long-term U.S. average. Taxes could reduce your actual net gain; the future may depart from historical trends; and market changes could cause your results to differ, up or down. You could lose money. Even low-risk investments like T-Bills, bank savings, and money market funds can lose buying power when interest rates are very low or inflation runs higher than expected.
To learn more, read "How Long?" for examples of using the calculator's results. Or try one of our customized calculators:
- Safe Payout. Each year, find out ... How much can you safely spend from your retirement savings?
- Retiree Reserves. If retired ... How much should you reserve for medical costs, long-term care, and home repairs?
- Read Using Our Calculators for tips, FAQs, and explanation of the calculator's methods.
- Use the menus at the top of this page to find helpful articles.
Note: This calculator was most recently updated on January 8, 2017, with current inflation rates and long-term value-adjustments. (See our article Finding Value for details.)