Stock/Bond Allocation Analysis
Discover how different asset allocations (0%-100% stocks) affect portfolio success rates.
Understanding Asset Allocation
The Trade-Off: Stocks historically provide higher returns but with greater volatility. Bonds provide stability and income but lower long-term growth. The right mix depends on your risk tolerance and time horizon.
Why This Matters: Asset allocation is often more important than individual stock selection. A small change in allocation can significantly impact your retirement success rate.
Historical Evidence: Our analysis uses 93 years of actual monthly market data (1928-2021) to show how different allocations would have performed through all market conditions, including crashes and recoveries.
Key Allocation Concepts
Lower volatility, steadier returns, but may struggle with inflation and longevity risk.
Good compromise between growth and stability. The 60/40 split is a common baseline.
Higher long-term returns but much more volatility. Requires strong risk tolerance.
The analysis will help you find the allocation that maximizes success rate for your chosen withdrawal rate.
Asset Allocation Guide
100% Bonds: Lower volatility, lower returns
60/40 Mix: Traditional balanced approach
100% Stocks: Higher returns, higher volatility
Key Insight: Higher stock allocations increase both potential returns and sequence of returns risk.