1. Compare the cost of one assumption
Open the portfolio simulator and run two cases with identical contributions, duration, return, dividend and inflation assumptions. Change only the annual fee. Record both inputs and outputs, including the currency. A hypothetical return is not an expected return.
| Record | Case A | Case B |
|---|---|---|
| Starting value and currency | ________________ | ________________ |
| Monthly contribution / years | ________________ | ________________ |
| Return / dividend / inflation | ________________ | ________________ |
| Annual fee | ________________ | ________________ |
| Nominal / inflation adjusted output | ________________ | ________________ |
Repeat with a lower return assumption in both cases. If a plan works only with optimistic inputs, record that dependency rather than treating the largest output as the answer.
2. Check the position sizing arithmetic
This simplified exercise is for shares without leverage. Use the position calculator to compare your arithmetic. It does not make a trade suitable or guarantee an exit price.
For a hypothetical $20,000 account and a self selected 0.5% loss limit, the planned budget is $100. If entry is $50 and the assumed exit is $48, each share has $2 of price risk. Reserving $4 for total costs leaves $96, enough for 48 whole shares. The calculation is 48 × $2 + $4 = $100. A gap or poor execution can exceed that amount; the stop is not insurance.
Check affordability separately: quantity × entry plus applicable costs must fit available cash. This worksheet does not model margin, options, futures, borrowing costs or taxes.
3. Reconcile portfolio drift before trading
Start with an existing written allocation, not a target selected from this example. Use consistent valuation dates and categories, and account for overlapping holdings before judging diversification.
Suppose a fictional $50,000 portfolio has $35,000 of equities and $15,000 of bonds against an existing 60/40 policy. Adding $5,000 only to bonds changes the total to $55,000. The equity weight becomes $35,000 ÷ $55,000 = 63.64%, not 60%. At that target, equities would be $33,000 and bonds $22,000, requiring a further $2,000 transfer in this simplified calculation. Taxes, fees and price changes are excluded. Neither the allocation nor the trade is a recommendation.
Read the full rebalancing example. Fund names alone do not establish diversification; the overlap analyzer can compare the holdings you supply but does not calculate a suitable allocation.
Keep a record you can revisit
Keep facts, assumptions and decisions separate. Save the inputs as well as the answer so you can explain a difference on the next review. Avoid recording account passwords or other credentials in this worksheet.
For independent background, see Investor.gov on investment fees and asset allocation. Product specific fees belong in the current prospectus and broker schedule.
Educational use only. Market Master does not provide individualized investment, legal or tax advice. All numerical examples here are fictional arithmetic exercises. Published 18 October 2026. Report a correction.