Hypothetical Portfolio

[augam]

How bad, how ugly?

50/50 AA with a 3% draw down.

 

[pb4uski]

Not readable.

 

[atmsmshr]

Can't even tell what the question is all about or response solicited.

 

[pb4uski]

+1 not sure what it all means

 

[OldShooter]

+1 not sure what it all means

It doesn't mean anything. Drawdowns don't matter. Total return is what matters.

 

[augam]

+1 not sure what it all means

Not readable.

Can't even tell what the question is all about or response solicited.

It doesn't mean anything. Drawdowns don't matter. Total return is what matters.

Scenario is 1.7mil 200k cash and 50/50 AA FBNDX/VTSMX 500k in each back tested with a 3% draw down annually.

In the chart shown I am wondering if this a typical scenario.

Thanks,

oh and sorry for confusion.

 

[OldShooter]

...I am wondering if this a typical scenario. ...

Yes. It is typical for the market to go down sometimes.

Edit: It is also typical for the market to go up sometimes.

 

[Animorph]

I assume my 75/25 would look worse. I'm fine with that.

But this is such a short time, during a mostly bull market, that I don't think any general conclusions should be drawn.

 

[Out-to-Lunch]

Scenario is 1.7mil 200k cash and 50/50 AA FBNDX/VTSMX 500k in each back tested with a 3% draw down annually.

In the chart shown I am wondering if this a typical scenario.

Thanks,

oh and sorry for confusion.

I still don't understand the portfolio yet: If you have 500k each in FBNDX & VTSMX and 200k in cash, and 1.7M total, where is the other 500k?

 

[augam]

I still don't understand the portfolio yet: If you have 500k each in FBNDX & VTSMX and 200k in cash, and 1.7M total, where is the other 500k?

My bad. I placed some side bets in various equities.

 

[LOL!]

Scenario is 1.7mil 200k cash and 50/50 AA FBNDX/VTSMX 500k in each back tested with a 3% draw down annually.

This is an odd mix of 2 funds because

(a) they are from two different firms

(b) VTSMX is no longer available for purchase I think since it has been replaced with VTSAX

(c) FBNDX is an actively-managed bond fund though many people confuse it with a total US bond index fund.

So one could have picked just about any 50/50 US stock / US bond mix I suppose and gotten similar results.

 

[augam]

This is an odd mix of 2 funds because

(a) they are from two different firms

(b) VTSMX is no longer available for purchase I think since it has been replaced with VTSAX

(c) FBNDX is an actively-managed bond fund though many people confuse it with a total US bond index fund.

So one could have picked just about any 50/50 US stock / US bond mix I suppose and gotten similar results.

I needed to back test an equity holding that had some history. Hence hypothetical.

 

[SecondCor521]

OP, are you familiar with firecalc? (http://www.firecalc.com - notice there are tabs across the top for multiple sections of input)

 

[kevink]

If you’re interested in worst case scenarios have a look at a more detailed review:

http://https://portfoliocharts.com/2019/08/20/the-top-4-portfolios-to-recession-proof-your-investments/

 

[Out-to-Lunch]

If you’re interested in worst case scenarios have a look at a more detailed review:

http://https://portfoliocharts.com/2019/08/20/the-top-4-portfolios-to-recession-proof-your-investments/

Somehow, a colon was missing from your URL. I think this is the link you meant:
https://portfoliocharts.com/2019/08/20/the-top-4-portfolios-to-recession-proof-your-investments/