Models

Portfolio Optimization

Maximize Sharpe Ratio

Sharpe Ratio measures return per unit of risk: Sharpe = (expected return − risk‑free rate) / volatility. Portfolio managers use it to compare mixes on a risk‑adjusted basis. Rule of thumb: ~0.5 is decent, ~1.0 is good, ≥1.5 is very good; ≥2.0 is rare and often window/assumption‑sensitive. Compare Sharpe within the same window and method.

This page uses Yahoo adjusted-close history. “Return” is the historical average (annualized) and “Volatility (σ)” is the annualized standard deviation. Optimized portfolios are long‑only and fully invested.

Enter each ticker’s US$ amount. Total portfolio value is the sum of those amounts (used for weights and allocation tables).

Monthly smooths noise and is closest to academic convention. Daily captures more observations but inflates Sharpe estimates due to autocorrelation. Weekly is a middle ground.

Analyze first to inspect returns and covariance, then Optimize to find better weights.

About this tool (for search & readers)

This portfolio optimizer helps you explore mean-variance efficient weights and historical projection paths — a building block for retirement drawdown planning, not a full tax-aware withdrawal engine.

Short answer

Retirement drawdown is how you withdraw from taxable, tax-deferred, and Roth accounts over time. This tool focuses on portfolio construction and backtested paths; pair it with the full planner for expenses and NPV models.

Assumptions

Limitations

Past performance does not predict future results. Not individualized investment advice.

CoastRetirement.com provides educational calculators and planning models. It does not provide individualized financial, investment, tax, or legal advice.