Markola
Thinks s/he gets paid by the post
I’m hoping this Portfolio Visualizer link works for others. I backtested our actual 55/45 [Portfolio 1] against an 80/20 one [Portfolio 2] vs a 100% US Stock one [Portfolio 3]. I was stunned at the relative lack of difference across the 3 over the last 20 years. Caveats:
- Portfolio 1 has some international exposure
- The last 20 years is an arbitrary interval
- We have not had this asset allocation for 20 years. I ran the simple test to see if we are “missing the boat) by owning 45% bonds.
Still, the result was surprising and I thought worth sharing:
https://www.portfoliovisualizer.com...cation6_2=20&total1=100&total2=100&total3=100
In case it won’t open for you, the 20 year results as of today are:
Portfolio 1: 6.14% Compound Annual Growth Rate (CAGR)
Portfolio 2: 6.58%
Portfolio 3: 6.66%
These three portfolios were all actually at a tie at 2016 just three years ago.
- Portfolio 1 has some international exposure
- The last 20 years is an arbitrary interval
- We have not had this asset allocation for 20 years. I ran the simple test to see if we are “missing the boat) by owning 45% bonds.
Still, the result was surprising and I thought worth sharing:
https://www.portfoliovisualizer.com...cation6_2=20&total1=100&total2=100&total3=100
In case it won’t open for you, the 20 year results as of today are:
Portfolio 1: 6.14% Compound Annual Growth Rate (CAGR)
Portfolio 2: 6.58%
Portfolio 3: 6.66%
These three portfolios were all actually at a tie at 2016 just three years ago.