Here Is How Portfolio Einstein Helps You

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  • Bring down expense in your family office 

Low-Risk Portfolios

This page displays low-risk portfolios available on portfolioeinstein.com.

Some words on risk

Risk comes in many shapes and forms. In academia and in much of the investing industry, risk in investing is measured by standard deviation (a measure of how much the price of an asset bounces around).

Now, a standard deviation is, well – academic. This is because, for you and me, the risk is the pain we go through when we lose money.  That pain is called draw-down. The draw-down of a portfolio is the amount of money the portfolio will lose in a  given year. So, for example, a portfolio with a draw-down of -20% has at some point lost 20% of its value. That’s a good indication of what could happen in the future.

Now, that’s pretty actionable information that we can plan around and relate to.

A rough rule of thumb is that for each 20% of stocks a portfolio has it has a draw-down of -10%. So a 100% stock portfolio has potentially a draw-down of -50%. A 60% stock portfolio has a potential draw-down of -30%.

There are other forms of risk however but the draw-down is what we will focus on when dividing the portfolios into the various risk levels. You should also look at standard deviation as well as the stock to bond ratio.

How the risk levels are determined

We have given the portfolios a risk level from 1-5.

1 is the least risky but also offers the least reward.

5 is the riskiest but offers the most rewards.

The portfolios have been divided into quintiles. In the first quintile, the first 20% represent the portfolios that have the lowest draw-downs. The last 20% are the ones with the highest draw-downs.

You can find the other 4 risk portfolios here:

Very High-Risk Portfolios

High-Risk Portfolios

Medium-Risk Portfolios

Very Low-Risk Portfolios

This page is displaying the low-risk portfolios. They are suited for short term savings and even then you may be better off with a CD (certificate of deposit) or a standard savings account.

Low-risk portfolios

Portfolio nameAsset AllocationAsset class count1 year return (2019)Year to date10 year returnCAGR since 1989STDEVSharpeDrawdownYield
60/40 Portfolio221.97%2.61%9.68%9.09%11.05%0.61-20.13%1.91%
Bill Schultheis' "Coffeehouse" Portfolio719.27%1.01%8.50%8.69%10.07%0.6-20.14%2.23%
Index Fund Advisors, Portfolio 501615.04%0.15%6.34%7.60%8.91%0.55-17.64%2.07%
The Marc Faber Portfolio620.71%2.06%7.41%8.04%9.35%0.56-16.81%1.96%
Scott Burns Couch Potato219.48%1.75%8.56%8.73%9.86%0.63-19.88%0.91%
Scott Burns Four Square417.09%1.16%6.75%7.34%9.42%0.5-19.56%1.34%
Larry Swedroe, Eliminate Fat Tails Portfolio (value tilt)410.75%-0.21%4.05%6.97%8.24%0.53-13.55%1.17%
Larry Swedroe Big Rocks Portfolio1116.34%0.17%6.94%7.92%9.88%0.54-20.56%2.11%
William Bernstein's Cowards Portfolio916.90%0.51%7.18%8.10%9.82%0.57-19.94%1.98%
William Bernstein's Four Pillars Medium Portfolio617.56%0.91%7.58%7.96%9.63%0.56-19.66%1.93%
William Bernstein's Four Pillars Low Risk Portfolio416.14%1.45%6.57%7.30%8.29%0.57-15.91%1.83%
Rob Arnott's Portfolio816.42%0.94%5.76%7.40%7.38%0.64-14.71%1.83%
The Global Market Portfolio, (GMP) CREDIT SUISSE818.62%2.16%7.60%8.36%8.82%0.64-15.60%2.11%
Robo Advisor Betterment 401114.75%0.91%6.08%7.62%7.93%0.62-13.47%2.02%
Harry Markowitz's Father of Modern Portfolio Theory Portfolio219.76%2.41%8.71%8.66%9.51%0.65-15.92%1.95%
Rick Ferri Transitional Moderate Basic Portfolio518.14%1.79%7.38%7.86%8.82%0.59-17.05%2.20%
Rick Ferri Mature Retired Saver Moderate Multi Asset Portfolio1014.93%1.12%6.29%7.54%7.22%0.67-12.57%1.84%
Balanced Portfolio 50/50219.76%2.41%8.71%8.66%9.51%0.65-15.92%1.95%
Index Fund Advisors, Portfolio 401613.32%0.31%5.45%6.92%7.15%0.58-13.07%2.00%
The Jack Bogle Portfolio221.97%2.61%9.68%9.09%11.05%0.61-20.13%1.91%
Paul Merriman's Best-in-Class ETFs Portfolio (Moderate)1516.44%0.05%6.88%8.18%10.03%0.55-19.51%2.22%
Paul Merriman's Target Date Portfolio (65 year old)1415.04%0.14%6.81%8.11%8.50%0.63-14.21%1.84%
iShares Lifepath Fund616.32%1.51%6.64%7.55%7.73%0.63-13.50%1.97%
BlackRock Model Portfolio 55% Stocks417.97%1.69%7.28%7.64%9.30%0.54-17.68%1.91%
BlackRock Model Portfolio 51% Stocks418.72%1.70%7.48%7.73%9.92%0.52-19.53%2.02%
BlackRock Model Portfolio 40% Stocks417.97%1.69%7.28%7.64%9.30%0.54-17.68%1.91%
BlackRock Model Portfolio 36% Stocks416.25%1.78%6.88%7.53%7.67%0.63-12.45%1.79%
TD Ameritrade Core Portfolio Moderate516.04%1.64%6.52%7.39%7.64%0.62-12.77%2.07%
TD Ameritrade Core Portfolio Moderate Growth517.89%1.69%7.17%7.65%9.13%0.55-17.28%2.10%
Morningstar Conservative Retirement Saver Portfolio718.17%1.39%7.58%8.29%9.57%0.6-18.42%1.87%
Merrill Lynch Edge Select Portfolio, Moderately Conservative1216.27%1.73%6.81%7.90%7.90%0.67-12.84%2.08%
Rick Ferri's Core 4 fund Portfolio (40/60)416.36%1.73%6.71%7.60%7.47%0.66-12.56%2.20%
Vanguard LifeStrategy Conservative Growth (40/60)415.93%1.62%6.54%7.33%7.65%0.6-12.81%1.90%
Tim Maurer Simple Money Portfolio716.20%0.24%6.91%7.84%10.10%0.52-18.84%2.33%
T. Rowe Price ActivePlus Portfolio, Model 40416.41%1.56%6.79%7.59%7.78%0.63-13.57%1.78%
T. Rowe Price ActivePlus Portfolio, Model 50418.30%1.69%7.47%7.92%9.25%0.58-17.94%1.89%
Schwab Managed Portfolio, Balanced1115.69%0.68%5.63%7.16%8.08%0.56-17.18%2.06%
Meb Faber's GAA1018.57%1.66%6.86%7.95%8.39%0.63-15.76%1.97%
Morningstar Lifetime Allocation Index Aggressive, Income1817.40%0.97%6.97%8.10%8.89%0.62-18.40%1.73%
Morningstar Lifetime Allocation Index Moderate, Income1815.07%0.87%6.04%7.61%7.37%0.67-13.65%1.63%
Morningstar Lifetime Allocation Index Conservative, 20301817.22%1.01%6.83%8.12%8.85%0.63-17.47%2.06%
7-Twelve Portfolio Age Based 50-60 by Craig Israelsen1215.27%0.17%5.06%7.03%8.34%0.53-18.09%1.60%
7-Twelve Portfolio Age Based 60-70 by Craig Israelsen1211.99%0.17%3.96%6.07%6.37%0.53-13.04%1.55%
Dan Solin The Smartest ETF Portfolio, Medium-Low Risk212.83%0.80%4.48%5.99%6.98%0.47-12.98%1.80%
Dan Solin The Smartest Index Portfolio, Medium-Low Risk316.43%1.76%6.77%7.59%7.71%0.64-12.56%2.14%
TIAA-CREF Lifecycle Index Retirement Income615.90%1.49%6.52%7.65%7.83%0.64-13.27%1.86%
William Bernstein Taxable Ted 60/40519.17%1.62%8.33%8.15%10.14%0.55-21.73%2.19%
William Bernstein Taxable Ted 50/50517.05%1.58%7.55%7.77%8.67%0.58-17.70%2.18%
William Bernstein Sheltered Sam 40/601214.35%0.56%6.19%7.55%7.85%0.62-17.12%1.72%
William Bernstein Sheltered Sam 30/701212.45%0.53%5.41%7.08%6.75%0.65-13.81%1.60%
William Bernstein Young Yvonne Portfolio1118.91%0.98%8.00%8.66%9.96%0.61-20.11%2.32%
William Bernstein Charlie Cringe Portfolio416.19%1.47%6.64%7.28%8.24%0.57-15.62%1.83%
William Bernstein Between Charlie and Wendy Portfolio617.62%0.93%7.64%7.94%9.59%0.56-19.38%1.93%
Goldman Sachs Target Date 2025 Portfolio1318.18%1.62%7.31%7.97%9.23%0.58-19.19%2.13%
Robo Advisor Betterment 501017.46%0.92%7.12%8.47%10.39%0.57-20.24%2.09%
Rick Ferri Total Economy Core-4 Portfolio Conservative415.71%1.19%6.37%7.47%7.31%0.64-12.81%2.17%
Rick Ferri Inflation Fighter Core-4 Portfolio Conservative417.45%1.30%6.66%7.51%8.73%0.55-19.65%1.78%
Rick Ferri Income Seeker Core-4 Portfolio Low-Risk415.92%1.62%6.94%7.58%8.21%0.59-16.15%2.88%
Rick Ferri Income Seeker Core-4 Portfolio Conservative417.37%1.16%7.81%7.99%9.45%0.57-21.07%3.08%
Rick Ferri Socially Conscious ESG Core-4 Portfolio Conservative417.35%1.99%7.36%7.89%8.06%0.65-13.01%2.13%
3 Fund Portfolio 40/60316.50%1.79%6.84%7.56%7.65%0.64-12.22%2.13%
FPL Capital Management Portfolio 40914.96%0.67%6.86%8.22%7.49%0.73-12.67%2.43%
FPL Capital Management Portfolio 50916.52%0.48%7.62%8.70%8.88%0.68-17.12%2.50%
Assetbuilder.com Portfolio 81415.54%0.37%6.72%8.34%9.44%0.6-17.59%2.04%
Robo Advisor WiseBanyan 40% stocks916.89%1.46%6.99%7.86%8.46%0.61-16.69%2.12%
Robo Advisor WiseBanyan 30% stocks915.03%1.40%6.31%7.53%7.24%0.66-12.64%2.02%

Disclaimer: There are many factors that go into choosing your right portfolio, though not as many as you would think. Therefore, the information here presented are not specific recommendations but instead for information purposes only.

Now it’s your turn!

Which portfolio are you leaning towards and why?

Why do you think a low-risk portfolio is right for you?

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