This is where we should be, how we should be investing. Strategic III models combine asset allocation guidance from Morningstar/Ibbotson that is based on Nobel Prize-winning research, and each model is populated by mutual funds I have selected as top-of-category.
You may have read columns that tell you to skip the actively-managed mutual funds and just use low-cost index funds. If you don't know how to access the outperformers, and if you do know how to allocate your portfolio strategically, then you can save money by do-it-yourself investing. Otherwise, find an advisor that preaches and practices cost-justification and can explain their rationale/process. Me, for example.
So, here's how the models and some alternatives have been doing:
| US and Foreign Indexes | 3 mo | 1 yr | 2 yr | 3 yr | 5 yr | 10 yr | 2008 | |
| Stock Markets (72-21-7) | 1.8% | 7.1% | 2.2% | 3.5% | 9.5% | 2.1% | -41.0% | |
| S&P 500 | 3.3% | 9.5% | 4.3% | 6.6% | 12.2% | 4.7% | -38.5% | |
| Dow Jones Industrial Avg | 7.9% | 13.4% | 5.3% | 6.0% | 10.1% | 4.7% | -33.8% | |
| MSCI EAFE | -1.0% | -1.9% | -2.6% | -4.2% | 3.6% | -2.1% | -45.1% | |
| MSCI EM | -4.6% | 8.6% | -5.0% | -4.9% | -1.2% | -0.6% | -54.5% | |
| Barclays Agg Bond--US | -3.0% | 2.7% | 1.6% | 3.0% | 2.2% | 4.3% | 5.2% | |
| Citi WGBI nonUSD (foreign bonds) | -10.8% | 1.8% | -1.9% | -2.2% | -1.9% | 2.5% | 10.1% | |
| Aggressive (90% stocks-10% bonds) | 2.3% | 8.8% | 2.4% | 2.9% | 7.9% | 3.4% | -36.0% | |
| 95 Strategic III | 1.1% | 10.0% | 4.1% | 5.5% | 10.7% | 7.5% | -30.9% | |
| 95 Schwab index | 2.9% | 10.0% | 4.7% | 5.3% | 11.5% | 5.6% | -34.6% | |
| 95 Strategic USA II | 3.6% | 12.1% | 4.8% | 7.0% | 13.0% | 9.4% | -25.8% | |
| Confluence Value Opportunities | 3.4% | 15.4% | 8.7% | 15.8% | 21.4% | 11.2% | -22.3% | |
| Confluence Equity Income | 2.8% | 18.0% | 8.7% | 9.6% | 14.3% | 8.8% | -18.9% | |
| WealthFront 9 | 0.4% | 9.5% | 2.2% | 2.6% | 7.9% | 4.1% | -38.1% | |
| American Funds Port Ser Growth | 0.3% | 7.4% | 4.4% | 4.9% | 12.0% | 6.0% | -40.8% | |
| American Funds Port Ser Global Growth | -1.7% | 3.7% | 2.1% | 2.1% | 10.1% | 5.1% | -40.5% | |
| Moderately Aggressive (75-25) | 1.6% | 7.9% | 2.3% | 2.8% | 6.9% | 3.6% | -31.0% | |
| 80 Flex IV | -0.2% | 6.3% | 0.8% | 1.2% | 5.9% | |||
| 80 Flex V | -0.1% | 4.4% | 0.3% | 1.3% | 7.0% | -16.9% | ||
| 80 Strategic II | 3.0% | 10.2% | 3.5% | 3.9% | 10.1% | 6.7% | -31.1% | |
| 80 Strategic III | 0.6% | 9.4% | 3.9% | 5.3% | 10.0% | 7.4% | -27.7% | |
| 80 USA tilt | 3.9% | 10.5% | 3.7% | 4.3% | 10.0% | 6.5% | -28.5% | |
| 80 Schwab index | 1.7% | 8.0% | 4.2% | 5.2% | 10.3% | 5.5% | -30.6% | |
| Money 75 | 2.1% | 10.8% | 4.6% | 4.9% | 9.9% | 5.9% | -32.7% | |
| American Funds Port Ser Gr+Inc | -0.4% | 8.0% | 3.4% | 4.6% | 9.7% | 5.1% | -30.8% | |
| Moderate (60-40) | 1.0% | 7.1% | 2.2% | 2.7% | 5.9% | 3.7% | 25.6% | |
| 60 Flex V | 0.2% | 5.0% | 1.0% | 1.9% | 7.2% | 6.4% | -13.1% | |
| 60 Strategic III | 0.2% | 8.4% | 3.5% | 4.8% | 8.5% | 7.0% | -23.3% | |
| 60 Schwab index | 0.7% | 7.0% | 3.4% | 4.0% | 7.9% | 4.6% | -25.6% | |
| American Funds Port Ser Balanced | -0.5% | 5.9% | 3.2% | 4.1% | 8.6% | 5.1% | -28.3% | |
| Moderately Conservative (40-60) | 0.1% | 5.4% | 1.8% | 2.0% | 4.4% | 3.6% | -17.4% | |
| 40 Strategic III | -0.2% | 7.5% | 3.0% | 3.9% | 6.9% | 6.6% | -16.7% | |
| 40 Schwab Index | -0.7% | 4.3% | 2.9% | 4.4% | 6.8% | 4.7% | -19.7% | |
| Goldman Sachs Income Builder | 1.7% | 9.3% | 2.7% | 3.0% | 7.5% | 5.3% | -23.3% | |
| Conservative (20-80) | -0.9% | 4.2% | 1.4% | 1.6% | 2.6% | 3.4% | -8.4% | |
| 20 Strategic III | -0.7% | 6.7% | 2.8% | 3.3% | 4.3% | 4.8% | -9.2% | |
| 20 Schwab index | -1.6% | 2.5% | 2.3% | 4.2% | 5.3% | 4.2% | -13.9% | |
| NOTE 1: Past performance is no guarantee of specific future results. This data is presented by Potomac Wealth Strategies, LLC. This data is from Morningstar and should be accurate, but it has not been independently verified. | ||||||||
| NOTE 2: "Flex", "Strategic", and "Index" models are crafted/run by Potomac Wealth Strategies. They show history of better returns, lower volatility, or both--or, with the Index models, closer tracking--vs benchmarks and competitors. | ||||||||
| NOTE 3: "XX Schwab index" models are low-cost portfolios. They are comprised of index funds available free of transaction charges to my clients at Schwab. This is what many might recommend due to low-costs and portfolio efficiency. | ||||||||
| NOTE 4: Nothing on this blog post represents investment advice to any individual or organization. If the information hereon is of interest to you, please contact me at Garo.Partoyan@PotomacWealthStrategies.com for a consultation. | ||||||||
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