Allocation is the distribution of your money in different types
of investments. Using the College Fund Calculator, you can invest
your money in stocks, mutual funds, bonds, and certificate of
In terms of math applications, allocation of money is like
dividing a dollar bill into a percentage of a pie. For
Conservative investors may invest their money in CD's and
bonds. The pie chart will show 40% in CD's and 60% in bonds.
Moderate investors will invest in stocks, mutual funds,
bonds, and CD's. The pie chart will show 50% in stocks, 20%
in CD's, 10% in bonds, and 20% in mutual funds.
Aggressive investors may invest most of their money in
stocks and little in other investments. The pie chart will show 90%
in stocks and 10% in CD's.
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