60/40 Classic Portfolio

The traditional balanced portfolio split between stocks and bonds.

Allocation Breakdown

2 Assets

US Stocks

US Bonds

Target Allocation

Asset Class	Weight	Example Ticker
US Stocks	60%	SPY
US Bonds	40%	AGG

Risk Level

Moderate

Rebalance Frequency

Semi-annually

Advantages

Time-tested allocation
Lower volatility than 100% stocks
Regular income from bonds
Simple to implement

Disadvantages

May underperform in low-rate environments
Bond allocation may not keep pace with inflation
Less suitable for young investors with long time horizons

About This Portfolio

The 60/40 portfolio is the classic institutional allocation that balances growth and stability. With 60% in equities for capital appreciation and 40% in bonds for income and downside protection, it has been the default recommendation for moderate-risk investors for decades.

Historical Context

The 60/40 portfolio has been a staple of institutional investing since the 1950s. While some have declared it "dead" in the post-2020 rate environment, it continues to provide a reasonable risk-return tradeoff for conservative investors.

Who It's For

Moderate-risk investors approaching or in retirement who want growth with meaningful downside protection.

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