Balanced Portfolio
The classic 50/50-ish split. Equity for growth, bonds for ballast, alternatives for diversification.
3 – 7 years · Moderate risk
Try a different mix
Updating…Why this allocation
A 3-7 year horizon and moderate risk tolerance call for a balanced split between growth and stability. A classic 50/35/10/5 split — enough equity to grow meaningfully, with bonds and alternatives smoothing the ride through market cycles.
Balanced is the textbook middle. Half the money in stocks gives the portfolio a real engine of return; a third in bonds smooths the ride; a small alternatives sleeve hedges against the regime where stocks and bonds fall together. Over the past 30 years, a 50/35/10/5 mix has returned roughly 6% to 7% annualized with a worst-year loss in the high teens. It's the allocation most retail investors should default to if they don't have a strong reason to lean elsewhere, because it's diversified enough to hold through cycles and growth-oriented enough to do useful work.
Who it's for
- You have a 5 to 15 year horizon.
- You want one allocation that works whether the next decade is a bull market or a long sideways grind.
- You don't have a strong view on stocks vs bonds and prefer the diversified default.
- You've decided to invest passively and want a no-tinker setup.
The honest drawback
Balanced is everyone's second-best portfolio. In a long bull run it underperforms a heavy-equity allocation by several points a year; in a brutal bear market it underperforms a pure-bond portfolio. The trade-off is real: the balanced reward for picking the wrong side is mediocre returns. The reward for not knowing which side will win is a portfolio that still compounds at a respectable rate either way.
When to revisit
Move up to Growth or Dynamic if the horizon extends past 10 years and the appetite for volatility is genuine. Move down to Defensive if a 20% drawdown would force a rethink. Stay here if neither move fits. Balanced exists for exactly that case.
Your ETFs
Gold as a hedge against uncertainty and inflation
US large-cap exposure — the world's deepest equity market
Developed markets outside the US for geographic diversification
Emerging market growth potential at low cost
Core bond holding — true world if available, US Aggregate otherwise
Inflation protection with government-backed real returns
Ultra-safe cash equivalent for capital preservation
How this portfolio behaves
Fees over 20 years
~$25,901 less in fees
At 0.06% a year, vs 1.00% with a robo-advisor. On $50,000.
Defensive
Bond-heavy, but with enough equity to keep growing. The middle ground between Conservative and Balanced.
→ More riskGrowth
Equity-led, with bonds and alternatives keeping drawdowns survivable. The classic long-horizon mix.
This is not investment advice. The information provided is for educational purposes only. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.