Your Retirement Reality:
How Typical Portfolios
Stack Up
Based on market research, here’s a typical retirement portfolio mix of investors ages 55 and up:
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55% Stocks & Stock Indexes (Stock Data based on S&P 500)
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35% Bonds (BND)
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10% Cash/Liquid Asset Investments
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This is actual data based on this portfolio mix.
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We used $100,000 invested in 2020 to calculate the numbers.
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We track the $100K investment for five (5) years, plus 2025 YTD.
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It’s tied to the economy’s ups and downs and adjusted for inflation.
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NOTE: If this was a “Stock Only” portfolio, numbers would be much lower.
Actual Annual % Return After Inflation
5+ Yrs. Data on Typical 2020 $100K Investment
Running Totals of Portfolio Profits
Note:
Inflation cut profits by 23.7% from 2020–2024—Real growth was 18.8% or 4.6% actual annualized return..
Many personal portfolios rely on a “Buy, Hope & Hold” strategy:
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BUY - You pick the right stocks or investments.
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HOPE - The stock or investment rises more than inflation.
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HOLD - You sell your stock or investment at the right time.
For many with 401(k)s or retirement portfolios, it’s a fragile bet on continuous modest gains. Here’s why the traditional investing needs to change:
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Market Dependency: Gains need upward trends. In 2024, the S&P 500 rose 23.3%, but inflation (2.9%) cut real returns to 20.4%. A steep drop can slash profits fast. Even top years (2023’s 24.2%) yield ~20% real returns after inflation (3.4%). Portfolios lag with little defense from declines (e.g., 2022’s 19.4% precipitous drop).
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Vulnerability to News: Bad news, like economic dips or policy shocks—can tank traditional portfolios fast, erasing months of gains in a single day.
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Static Portfolios in Dynamic Markets: Brokers typically review your portfolio 1–3 times yearly, urging patience while markets shift daily. Stocks that should be sold, sit idle.
Disclaimer: All investments, including ProfitVest AI, carry risk. Past performance does not guarantee future results. Market conditions, volatility, and unforeseen events may lead to losses. Consult a financial advisor before investing.