Allocation Rate

Financial professionals use allocation rates to let their clients know how funds are allocated in an investment account.

You have $10,000 in an investment account with a particular advisor (Nice! Staying away from Starbucks is paying off). In the account, you have $7,500 in U.S. stocks, $1,500 in foreign stocks and $1,000 in treasuries. So in this case, your allocation rates would be 75% U.S. stocks, 15% foreign stocks and 10% bonds.