For decades, a 60% large-cap U.S. stocks and 40% U.S. bonds portfolio has been the conventional way to provide moderate-risk, long-term growth in a retirement portfolio.
For now, we won’t mess with the 60% stock portion, but how about the 40% component?
Candidates for the 40% Portfolio
This chart below lists many of the contenders to replace the 40% bonds asset.
For now, we won’t mess with the 60% stock portion, but how about the 40% component?
Candidates for the 40% Portfolio
This chart below lists many of the contenders to replace the 40% bonds asset.
Performance of the New 60/40 Portfolio
If you pick one of the above assets to replace bonds, what will the new 60/40 portfolio perform? The following table gives the answer:
If you pick one of the above assets to replace bonds, what will the new 60/40 portfolio perform? The following table gives the answer:
You can read the article that produces the above tables here.
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