Investing Pathways - Your Guide to a Sound Financial Future  
Log InSite Map
 
Classroom Portfolio Observer Investing Basics Personal Finance Stocks and Funds Investing Basics E-Book
 
 Home
 Register
 FAQs
 Glossary
 About
 Visit AAII.com
American Association of Individual Investors Web site

How AAII members feel about current market conditions as of 8/24/2016:
Bullish 29.42%
Neutral 40.94%
Bearish 29.64%


Portfolio Observer

Popular Investment Benchmarks   (Data as of 12/31/2015)
Stocks Standard Deviation 1 yr 5 yrs 10 yrs
Large-Cap Stocks 11.11% 5.46% 13.21% 7.62%
Mid-Cap Stocks 12.2% 5.08% 11.76% 8.86%
Small-Cap Stocks 13.43% 2.21% 11.68% 8.51%
International Stocks 12.77% -7.44% 3.02% 2.01%
Emerging Markets Stocks 16.97% -1.48% -2.65% 3.74%
Fixed Income
Intermediate Bonds 3.47% 5.13% 2.96% 5.16%
Short-Term Bonds 1.0% 1.46% 0.83% 2.63%
Overall market
Vanguard Total Stock Market Index (VTSMX) 11.27% 4.34% 12.84% 7.86%

AAII Asset Allocation Models

What is your investor profile? Follow one of our recommended allocations and check back frequently for monthly return data.

Investor Profile Standard Deviation 1 yr 5 yrs 10 yrs
Aggressive Investor
  • Age 18-35
  • 30+ Years Investment Horizon
10.5% 1.4% 8.0% 6.3%
Moderate Investor
  • Age 35-55
  • 20+ Years Investment Horizon
7.9% 2.7% 7.4% 6.2%
Conservative Investor
  • Age 55+
  • 10+ Years Investment Horizon
5.4% 3.9% 7.1% 6.1%
 Suggested Allocation Breakdowns
Aggressive


   20% Large-Cap Stocks
   20% Mid-Cap Stocks
   20% Small-Cap Stocks
   20% International Stocks
   10% Emerging Markets Stocks
   10% Intermediate Bonds
   0% Short-Term Bonds
Moderate


   20% Large-Cap Stocks
   20% Mid-Cap Stocks
   10% Small-Cap Stocks
   15% International Stocks
   5% Emerging Markets Stocks
   30% Intermediate Bonds
   0% Short-Term Bonds
Conservative


   25% Large-Cap Stocks
   10% Mid-Cap Stocks
   10% Small-Cap Stocks
   5% International Stocks
   0% Emerging Markets Stocks
   40% Intermediate Bonds
   10% Short-Term Bonds
Aggressive Portfolio Return
YTD: 8.0%
1 yr: 1.4%
5 yrs: 8.0%
10 yrs: 6.3%
Moderate Portfolio Return
YTD: 7.3%
1 yr: 2.7%
5 yrs: 7.4%
10 yrs: 6.2%
Conservative Portfolio Return
YTD: 6.5%
1 yr: 3.9%
5 yrs: 7.1%
10 yrs: 6.1%

Broad Allocation Scenarios
Aggressive Investor

Allocations

Aggressive Portfolio Return
1 yr: 1.4%
5 yrs: 8.0%
10 yrs: 6.3%

Characteristics
Growth: Substantial
Income: Very Low
Risk: Substantial Year-to-Year Volatility of Portfolio Value
10% Average Annual Growth in Value
-30% Bad Year

Time Horizon
Age: often 18-35
30+Years: Long Investment Horizon
For investors who are very risk tolerant
Transition: 80% Diversified Stock
20% Fixed Income
Investors, as they age, usually transition their portfolios toward less risky and less aggressive asset allocations.

Back to Top

Moderate Investor

Allocations

Moderate Portfolio Return
1 yr: 2.7%
5 yrs: 7.4%
10 yrs: 6.2%

Characteristics
Growth: Moderate
Income: Low
Risk: Moderate Year-to-Year Volatility of Portfolio Value
8% Average Annual Growth in Value
-20% Bad Year

Time Horizon
Age: often 35-55
20+Years: Mid-Term Investment Horizon
 
For investors who can tolerate some risk
Transition: 60% Diversified Stock
40% Fixed Income
Investors, as they get closer to retirement, usually transition their portfolios toward lower risk and more conservative allocations.

Back to Top

Conservative Investor

Allocations
Conservative Portfolio Return
1 yr: 3.9%
5 yrs: 7.1%
10 yrs: 6.1%

Characteristics
Growth: Low
Income: Moderate
Risk: Low Year-to-Year Volatility of Portfolio Value
6% Average Annual Growth in Value
-15% Bad Year

Time Horizon
Age: often 55+
10+Years: Short-Term Investment Horizon
 
For investors who are not risk tolerant

Back to Top


Register for free with Investing Pathways and receive:
AAII Investor Update E-Newsletter
Educational investment articles
Portfolio Observer
Investor Classroom "mini-courses"
and much more!

Investing Basics... and Beyond is an E-book you may think is only for beginning investors... but it's filled with so much sound advice that every reader can benefit from.
 GO