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
69
Concentration
0
Allocation
85
Warnings
- •Your largest holding is 62.5% of your portfolio - consider diversifying
Suggestions
- check_circleREITs can provide diversification and income
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What is Portfolio Diversification?
Portfolio diversification is the practice of spreading investments across different asset classes, geographies, and sectors to reduce risk. A well-diversified portfolio is less likely to suffer catastrophic losses if one sector or region performs poorly.
The classic diversified portfolio includes stocks (domestic and international), bonds, real estate (REITs), and possibly commodities or alternative investments. The right allocation depends on your time horizon, risk tolerance, and FIRE type.
Diversification for FIRE Investors
FIRE investors typically hold higher equity allocations than traditional retirees because they have a very long investment horizon (30-50+ years). The standard FIRE recommendation is 90-100% equity during accumulation, shifting to 70-80% equity in early retirement.
For digital nomads, currency diversification is also important. Holding assets in multiple currencies provides protection against any single currency's devaluation, especially relevant if your expenses are in a different currency than your income.
Common Portfolio Health Mistakes
Home country bias: many investors overweight their home country, reducing true global diversification. Concentration in individual stocks: single stocks can go to zero. Neglecting bonds: even FIRE investors benefit from some bonds to reduce volatility and provide rebalancing opportunities.
Track Your Portfolio Health Over Time
Create a free account to save your portfolio, track diversification score changes, and get AI-powered recommendations for improving your asset allocation.
Frequently Asked Questions
What is a good diversification score?
A score of 70-100 indicates good diversification across multiple asset classes and geographies. 40-70 suggests moderate diversification with some concentration risks. Below 40 indicates high concentration risk that could lead to large losses if any single holding performs poorly.
How many assets should I hold?
Quality matters more than quantity. A portfolio of 3-5 broad index ETFs (global stocks, bonds, REITs) can be more diversified than 50 individual stocks concentrated in one country. Broad index funds provide instant diversification across hundreds or thousands of companies.
What is concentration risk?
Concentration risk is having too much of your portfolio in a single asset, sector, or geography. If you have 40% in technology stocks and tech crashes, your entire portfolio suffers. Diversification limits this by spreading exposure across uncorrelated assets.
How often should I rebalance my portfolio?
Most FIRE investors rebalance annually or when allocations drift more than 5% from targets. Rebalancing too frequently incurs unnecessary transaction costs and taxes. A simple approach: rebalance when adding new money by directing contributions to underweight asset classes.
Should digital nomads hold foreign currency assets?
Yes. If you earn in EUR but live in Thailand (THB), holding some USD or THB assets provides natural hedging. More importantly, holding global stock index funds automatically provides currency diversification across major currencies.
Where this data comes from
City cost estimates are AI-modeled from curated price anchors and cross-checked against World Bank price-level data. Refreshed daily (incremental) and re-modeled in full every two months. Tax figures are modeled per country and currently being verified country-by-country against primary sources.
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