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I don't see how this would outperform 100% stocks over 10 years. Or in other words, show me the numbers.
by koonsolo 6y ago
I don't see how this would outperform 100% stocks over 10 years.
Or in other words, show me the numbers.
- Erwin 6y agoYou can use a site like this to compare: https://portfoliocharts.com/portfolio/total-stock-market/ https://portfoliocharts.com/portfolio/total-stock-market/ versus https://portfoliocharts.com/portfolio/classic-60-40/ https://portfoliocharts.com/portfolio/classic-60-40/ Mixing bonds gives you a slightly higher safe withdrawal rate but you do lose 2 percentage points average yearly returns.
- koonsolo 6y agoYeah, that's what I thought. So I don't get how it can "outperform" it
- lultimouomo 6y agoAre you asking if it can outperform total stock (it's pretty clear it can) or if it did? According to https://www.justetf.com/en/etf-strategy-builder.html https://www.justetf.com/en/etf-strategy-builder.html (click on "show simulation" and it will show the historical analysis) a 80/20 allocation slightly outperforms total stock over the last 20 years, while having lower volatility at the same time. I did not run the numbers myself. Considering only the last 10 years seems pretty limited, as you are ignoring both the dot-com bust and the 2008 crisis.