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choose your own adventure

Think about the different types of investment asset classes or funds as the activities you decide to include in your next trip. Do you want a conservative adventure with no surprises along the way that leaves you calm? Or an aggressive adventure that’s more uncertain but could potentially provide more trip highlights?

Whether you decide to mix in a relaxing day of laying on the beach, or you’re more up for surfing the rocky waves in the ocean - it’s all about choosing the asset allocation that fits your taste for risk and return expectations.

What do you want to make of your trip? To decide, let’s take a look at what potentially could have happened over the past 20 years for five different investors based on which adventure they decided to take with $10,000 compared to the stock market (S&P 500).

A calm ride that only provides investment highs with zero lows is everyone’s ideal trip. As you can see, however, most journeys have a risk and reward relationship. If you want the opportunity to see those trip highlights, you likely will have to get off the calm beach and ride the aggressive waves.

Source: Morningstar. Performance calculated by Zephyr StyleADVISOR based on weighted averages of hypothetical portfolios. The above chart is hypothetical based upon $10,000 initial portfolio investment and is used for illustrative purposes only. Past performance does not guarantee or indicate future results. It is not possible to invest directly in an index. The above are examples of investment strategies ranging from conservative (low equity exposure) to aggressive (high equity exposure). These hypothetical portfolios are constructed as examples of asset allocation strategies using representative uninvestable indices for educational purposes, only, and should not be construed as investment advice. Other asset allocation strategies may have similar risk and return characteristics; please consult your personal investment advisor for such strategies. Performance results assume the reinvestment of capital gains and income dividends and quarterly rebalancing. Performance of the hypothetical portfolios does not reflect any other fees or expenses that may be charged against your account. The asset allocation of each hypothetical portfolio is as follows: Conservative Portfolio: 35% FTSE 3mo T-Bill, 45% Bloomberg Barclays U.S. Aggregate Bond Index, 12% S&P500, 2% Russell Midcap Index, 0% Russell 2000 Index, 6% MSCI World Ex. US Index; Moderately Conservative Portfolio: 20% FTSE 3mo T-Bill, 40% Bloomberg Barclays U.S. Aggregate Bond Index, 20% S&P500, 4% Russell Midcap Index, 3% Russell 2000 Index, 13% MSCI World Ex. US Index; Moderate Portfolio: 13% FTSE 3mo T-Bill, 27% Bloomberg Barclays U.S. Aggregate Bond Index, 26% S&P500, 6% Russell Midcap Index, 6% Russell 2000 Index, 22% MSCI World Ex. US Index; Moderately Aggressive Portfolio: 8% FTSE 3mo T-Bill, 17% Bloomberg Barclays U.S. Aggregate Bond Index, 35% S&P500, 8% Russell Midcap Index, 7% Russell 2000 Index, 25% MSCI World Ex. US Index; Aggressive Portfolio: 0% FTSE 3mo T-Bill, 10% Bloomberg Barclays U.S. Aggregate Bond Index, 39% S&P500, 10% Russell Midcap Index, 9% Russell 2000 Index, 32% MSCI World Ex. US Index.

Investment advisory services offered through intellicents investment solutions, inc., a federal covered investment adviser.


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