Portfolio Health Check
Enter your asset allocation to get a diversification score. Identify concentration risks and see how to improve your portfolio health.
Last updated: · Built by the IndepAI Team
Your Holdings
Enter your investment holdings below. Add as many as you like.
Asset Allocation
Portfolio Health Score
Diversification
75
Concentration
20
Allocation
100
Warnings
- •Your largest holding is 62.5% of your portfolio - consider diversifying
Suggestions
- check_circleREITs can provide diversification and income
What is Portfolio Diversification?
Diversification is the practice of spreading your investments across different asset classes, sectors, and geographies to reduce risk. A well-diversified portfolio aims to maximize returns for a given level of risk by ensuring that poor performance in one area is offset by better performance elsewhere.
The FIRE Portfolio Approach
Many in the FIRE community follow a simple, low-cost approach:
- Total Stock Market Index (60-80%): Broad exposure to global equities via low-cost index funds
- Bond Index (10-30%): Fixed income for stability, especially as you approach FI
- REITs/Real Estate (5-15%): Real estate exposure without direct property ownership
- Emergency Fund (3-6 months): Cash or money market funds for unexpected expenses
Common Portfolio Risks
Single Stock Risk
Having more than 10% in any single stock exposes you to company-specific risk.
Sector Concentration
Heavy weighting in one sector (e.g., tech) can lead to correlated losses.
Home Bias
Over-investing in your home country misses global diversification benefits.
Asset Correlation
Holding assets that move together provides false diversification.
Track Your Portfolio Over Time
Create a free account to import your portfolio via CSV, track changes over time, and get AI-powered rebalancing recommendations.
Frequently Asked Questions
What is portfolio diversification?
Diversification is the practice of spreading your investments across different asset classes, sectors, and geographies to reduce risk. A well-diversified portfolio aims to maximize returns for a given level of risk by ensuring that poor performance in one area is offset by better performance elsewhere.
What is a good FIRE portfolio allocation?
Many in the FIRE community follow a simple, low-cost approach: Total Stock Market Index (60-80%), Bond Index (10-30%), REITs/Real Estate (5-15%), and an Emergency Fund (3-6 months of expenses in cash or money market funds).
What are common portfolio risks to avoid?
Common risks include: Single Stock Risk (more than 10% in any single stock), Sector Concentration (heavy weighting in one sector like tech), Home Bias (over-investing in your home country), and Asset Correlation (holding assets that move together providing false diversification).