Is 70 30 portfolio too risky?
As stated earlier, given that large-cap stocks have bigger returns than bond investments, younger investors could have enough time to boost their portfolios and recover from potential losses due to market volatility. It's important to note that both the 60/40 and 70/30 asset allocations are considered moderately risky.
Is 70 30 a good asset allocation?
A 70/30 portfolio generally entails more risk than a 60/40 split as there's a larger allocation to stocks. However, still have a decent amount of bonds and other fixed-income investments to balance out market volatility.
What is the average return on a 70 30 portfolio?
Over the very long-term period of 1926 to 2019, a 70/30 portfolio has an average return of 9.21 percent. For a long-term investor, that's a healthy appreciation. Out of the 94 years, only 23 years had a loss in that allocation, with the worst being over 31 percent in 1931.
Is an 80 20 portfolio good?
For example, an 80/20 portfolio is considered aggressive—which means it is focused on growth rather than stable income. According to Vanguard Advisors, the historical average return for an 80/20 portfolio from 1926 to 2019 is 9.61 percent.