The Unbeatable 60%/40% US Stocks and Bonds Portfolio?
A user has posted the following questions and would like us to address them in our newsletter:
Based upon what I see, it doesn’t matter whether you were using TAA, SAA Opt, or SAA equal, for the last 1, 3 and 5 years, Vanguard Balanced has out performed all the Moderate plans. Only the crash within the 10 year horizon caused the Moderate plans to perform better and only slightly better at that. Your thoughts and observations on this finding would be appreciated. Why do you think this is so? What do you think will happen in the future? Why should one not follow any of the Moderate plans and just use Vanguard Balanced instead? What if your time horizon is, say, 10-15 years? (College funds) How about longer?
These are the great questions that many users might have. Before we answer these questions, we would like to remind readers that we have addressed similar topics in our newsletters several times. We would like again to recommend anyone who is new to browse the newsletter collections. In terms of performance comparison, many portfolios mentioned below were discussed in
Please login or register an account to view the newsletter