Income

An income-oriented investor seeks current income with minimal risk to principal, is comfortable with only modest long-term growth of principal, and has a short- to mid-range investment time horizon.

100% bonds

Historical Risk/Return (1926–2018) Average annual return 5.3% Best year (1982) 32.6% Worst year (1969) –8.1% Years with a loss 14 of 93

20% stocks/ 80% bonds

Historical Risk/Return (1926–2018) Average annual return 6.6% Best year (1982) 29.8% Worst year (1931) –10.1% Years with a loss 13 of 93

30% stocks/ 70% bonds

Historical Risk/Return (1926–2018) Average annual return 7.1% Best year (1982) 28.4% Worst year (1931) –14.2% Years with a loss 15 of 93

Balanced

A balanced-oriented investor seeks to reduce potential volatility by including income-generating investments in his or her portfolio and accepting moderate growth of principal, is willing to tolerate short-term price fluctuations, and has a mid- to long-range investment time horizon.

40% stocks / 60% bonds

Historical Risk/Return (1926–2018) Average annual return 7.7% Best year (1933) 27.9% Worst year (1931) –18.4% Years with a loss 17 of 93

50% stocks / 50% bonds

Historical Risk/Return (1926–2018) Average annual return 8.2% Best year (1933) 32.3% Worst year (1931) –22.5% Years with a loss 18 of 93

60% stocks / 40% bonds

Historical Risk/Return (1926–2018) Average annual return 8.6% Best year (1933) 36.7% Worst year (1931) –26.6% Years with a loss 22 of 93

Growth

A growth-oriented investor seeks to maximize the long-term potential for growth of principal, is willing to tolerate potentially large short-term price fluctuations, and has a long-term investment time horizon. Generating current income is not a primary goal.

70% stocks / 30% bonds

Historical Risk/Return (1926–2018) Average annual return 9.1% Best year (1933) 41.1% Worst year (1931) –30.7% Years with a loss 23 of 93

80% stocks / 20% bonds

Historical Risk/Return (1926–2018) Average annual return 9.4% Best year (1933) 45.4% Worst year (1931) –34.9% Years with a loss 24 of 93

100% stocks

Historical Risk/Return (1926–2018) Average annual return 10.1% Best year (1933) 54.2% Worst year (1931) –43.1% Years with a loss 26 of 93

When determining which index to use and for what period, we selected the index that we deemed to be a fair representation of the characteristics of the referenced market, given the information currently available.

For U.S. stock market returns, we use the Standard & Poor’s 90 from 1926 – 3/3/1957, the Standard & Poor’s 500 Index from 3/4/1957 through 1974, the Wilshire 5000 Index from 1975 through April 22, 2005, the MSCI US Broad Market Index through June 2, 2013, and the CRSP US Total Market Index thereafter.

For U.S. bond market returns, we use the Standard & Poor’s High Grade Corporate Index from 1926 to 1968, the Citigroup High Grade Index from 1969 to 1972, the Lehman Brothers U.S. Long Credit AA Index 1973 to 1975 the Barclays Capital U.S. Aggregate Bond Index from 1976 to 2009 and the Barclays U.S. Aggregate Float Adjusted Bond Index thereafter.

For U.S. cash reserve returns, we used the Ibbotson 1-Month Treasury Bill Index from 1926 through 1977, and the Citigroup 3-Month Treasury Bill Index thereafter.











