By JLP | April 18, 2012
I have been tracking a retirement portfolio for several years here at AFM. It’s split 30/20/50 between domestic stocks, international stocks, and fixed income, respectively. The domestic stock portion is invested evenly in the 10 sector exchange-traded funds that make up the Dow Jones Total Market Index. The international stock portion was invested in the iShares MSCI EAFE Index Fund from 2004 through 2009 when it was replaced with the iShares MSCI All World (excluding the U.S.) Fund (ACWX). The fixed income portion was represented by the iShares Lehman Aggregate Bond Index Fund (AGG) and iShares Goldman Sachs Investop Corporate Bond Index Fund (LQD) from 2004 – 2008 when the iShares S&P/CitiGroup International Treasure Index Fund (IGOV) was added.
So, here is how the portfolio performed over the years:
As you can see, 2008 was a tough year. The entire portfolio was down 16.75% that year. The domestic equity portion lost 36.99%, the international equity portion was down 40.50%, and the fixed income portion was up 4.89%.
I’ll provide a PDF of the year-by-year portfolios in a follow-up.