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Stock / bond allocation

The most important investing decision you'll make.

Studies suggest your asset allocation explains roughly 90% of your portfolio's behavior. Try a few mixes — see how the expected return, volatility, and outcome range shift.

$
60/40
60% stocks40% bonds
Quick presets
Pessimistic (5th percentile)
$90,660
Median outcome
$182,919
Optimistic (95th percentile)
$402,192
Expected return
6.70%/yr
Stocks 8.5% · Bonds 4.0% (illustrative)
Expected volatility
10.1%/yr
Higher % = larger swings up and down each year

More stocks usually mean a higher expected return — and bigger drops along the way. The right mix depends on your time horizon and how much volatility you can sit through without selling.

Educational only. These are simplified long-run assumptions, not predictions or recommendations. Real returns are not guaranteed and will be reduced by taxes, fees, and inflation.

How to read this

The "pessimistic" and "optimistic" numbers are a 90% range — meaning historically, roughly 9 in 10 outcomes would land between them. They aren't worst-case or best-case, just educational guideposts. Real markets occasionally do worse than the pessimistic case (1929, 2008) and occasionally better than the optimistic case.

More on this in the asset allocation lesson.