Classic 60-40

The Classic 60-40 portfolio is the ubiquitous asset allocation that serves as the benchmark in most portfolio discussions.  Popularized by Jack Bogle — the founder of Vanguard who pioneered index investing — the Classic 60-40 portfolio has long been a staple of passive investors.  Other versions vary percentages by age and slice and dice the assets different ways, but this is a great place to start.

 

classic-60-40

Asset Allocation

Stocks

Domestic

  • 60% Total Stock Market

Bonds

  • 40% Intermediate Term Bonds