Allocation Balancing with Existing Money – Version 2005.01c

All Data Entry cell characters are shown in red.

This model is designed to assist an investor determine what adjustments in the existing allocation of funds will move the portfolio toward a specified target allocation. We are assuming this is being considered for a portfolio that is in a tax-deferred account. Reallocating existing dollars in an investment that is not tax deferred may trigger a taxable event. Consult your advisor before reallocating existing funds. This worksheet will assist in determining where to extract funds and where to reallocate those funds so as to move toward the target portfolio.

For the users convenience the model includes some sample portfolios on the far right of the worksheet. Click on the button for the sample you wish to see and the worksheet will import a guideline allocation in that column for the portfolio in question. The example portfolio section also allows you to override the built in portfolio examples by selecting the custom portfolio button. When this button is selected the content in the example portfolio section matches all content you enter in the far left (Asset Class) column as well as the target portfolio percentages entered in column G. If the user selects any of the example portfolios they reflect the built in data. If you select the Custom option all of the data then matches all of your data entry in the columns mentioned.

Data Entry:

Asset Classes: In this column list the names of all of the asset classes that are, or will be in the portfolio. The model accommodates up to 16 asset classes.

Current Portfolio Dollar Amounts: List the funds that are currently in each of the asset classes. The calculator will then indicate the percentage of funds that each dollar amount represents.

Target Portfolio Percentages: Enter the allocation that you are attempting to achieve.

The calculator then outlines the dollar amount that should be extracted from each asset class and where to deposit the funds to achieve the target portfolio. At the bottom of the worksheet you will see a graphical view of each portfolio.