How much should you really have in stocks vs. bonds — and what happens when the market turns south with a vengence?
In Boot Camp #4, we break down the fine-tuning asset allocation tables that show exactly how different combinations of equities and bonds have performed from 1970 through 2025. This episode goes beyond average returns and dives into what investing actually feels like during the worst 3-month, 12-month, and 60-month market declines.
You’ll learn:
- Why equities have historically dominated bonds for long-term retirement investing
- How the S&P 500 compares to diversified strategies like the Four-Fund portfolio
- The real impact of worst-case drawdowns (including 50%+ bear markets)
- What happens to a 100% stock portfolio during retirement withdrawals
- How 50/50, 60/40, and other stock-bond allocations reduce volatility
- Why median returns matter — and why averages can mislead
- How to control risk through asset allocation, low costs, tax efficiency, and index investing
We explore real historical data — including the 1973-74 bear market, the 2000-2002 tech crash, and the 2008 financial crisis — to help you understand both accumulation and retirement distribution phases.
Whether you're in your 20s building wealth, in your 50s preparing for retirement, or already retired and managing withdrawals, this episode helps you align your portfolio with your risk tolerance, return needs, and long-term financial goals.
If you want to be a confident do-it-yourself investor — without paying a 1% management fee — this episode gives you the framework to make informed decisions about stocks, bonds, diversification, and risk control.