The sample target investment mixes below show a blend of stocks, bonds, and short-term investments with different levels of risk and growth potential. With retirement likely to span 30 years or so, you’ll want to find a balance between risk and growth potential.
Showing posts with label portfolio. Show all posts
Showing posts with label portfolio. Show all posts
Wednesday, April 13, 2016
Thursday, June 30, 2011
Why A Portfolio Mix of Stocks & Bonds Is Best...
In the last 30 calendar years (1981-2010), a 70/30 mix of stocks to bonds (with annual rebalancing) produced an average annual total return of +10.5% (before-tax) with the worst year being a -24.3% loss in 2008.
A 100% stock portfolio produced a +10.7% average annual total return (before-tax) with the worst year being a -37.0% loss in 2008.
Thus the stock/bond combination produced 98% of the return of the all-stock portfolio with less volatility.
Source: BTN Research
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