It doesn't mean anything. Drawdowns don't matter. Total return is what matters.+1 not sure what it all means
+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.
Yes. It is typical for the market to go down sometimes....I am wondering if this a typical scenario. ...
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?
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.
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/