Observation on Model Portfolio Allocations (credits to Vanguard)

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First, the "Income Oriented" Portfolios

 

 

100% Bonds

Historic risk/return (1926-2006)
Average return 5.5%
Best year 32.6% (1982)
Worst year –8.1% (1969)
Years with a loss 13 of 81 (16.0%)
 

80% Bonds / 20% Stocks

Historic risk/return (1926-2006)
Average return 6.8%
Best year 29.8% (1982)
Worst year –10.3% (1974)
Years with a loss 11 of 81 (13.6%)
 

70% Bonds / 30% Stocks

Historic risk/return (1926-2006)
Average return 7.4%
Best year 28.4% (1982)
Worst year –14.2% (1931)
Years with a loss 13 of 81 (16.0%)
 

Next, the so-called "Balanced Portfolios"

 

 

60% Bonds / 40% Stocks

Historic risk/return (1926-2006)
Average return 7.9%
Best year 27.9% (1933)
Worst year –18.4% (1931)
Years with a loss 15 of 81 (18.5%)
 

50% Bonds / 50% Stocks

Historic risk/return (1926-2006)
Average return 8.5%
Best year 32.3% (1933)
Worst year –22.5% (1931)
Years with a loss 16 of 81 (19.8%)
 

40% Bonds / 60% Stocks

Historic risk/return (1926-2006)
Average return 8.9%
Best year 36.7% (1933)
Worst year –26.6% (1931)
Years with a loss 20 of 81 (24.7%)
 

Finally, the so-called "Growth" portfolios, which are really the Equity hogs.

 

30% Bonds / 70% Stocks

Historic risk/return (1926-2006)
Average return 9.4%
Best year 41.1% (1933)
Worst year –30.7% (1931)
Years with a loss 21 of 81 (25.9%)
 

20% Bonds / 80% Stocks

Historic risk/return (1926-2006)
Average return 9.8%
Best year 45.4% (1933)
Worst year –34.9% (1931)
Years with a loss 22 of 81 (27.2%)
 

100% Stocks

Historic risk/return (1926-2006)
Average return 10.5%
Best year 54.2% (1933)
Worst year –43.1% (1931)
Years with a loss 24 of 81 (29.6%)