| Conservative | Moderately conservative | Moderate | Moderately aggressive | Aggressive | |
|---|---|---|---|---|---|
| Time frame | 3–5 years | 5–7 years | 7–10 years | 10–15 years | 15 or more years |
| Goals | Appropriate for investors who want current income, investment stability, and capital preservation. | Appropriate for investors who want current income and investment stability, but also some opportunity to grow their investments. | Appropriate for investors who want current income, solid growth, and relative stability, and who can tolerate low levels of portfolio volatility. | Appropriate for investors who are most concerned about growing their investments and who can tolerate moderate levels of portfolio volatility. | Appropriate for investors who are most concerned about growing their investments and who can tolerate high levels of portfolio volatility. |
| Asset allocation |
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| Average annual return | +7% | +8% | +9% | +10% | +10% |
| Best year | +23% (1982) | +27% (1985) | +31% (1985) | +34% (1975) | +40% (1975) |
| Worst year | –10% (2022) | –13% (2022) | –21% (2008) | –30% (2008) | –36% (2008) |
Schwab Center for Financial Research. Data from 01/01/1970 through 12/31/2024. The historical returns for the five asset allocations are weighted averages of the performances of the indexes used to represent each asset class, include the reinvestment of dividends and interest, and are rebalanced annually. The indexes representing each class are: S&P 500® Index for U.S. large-cap stocks; Russell 2000 Index for U.S. small-cap stocks (1970–1978: CRSP 6-8 US Total Return Index); MSCI EAFE Net of Taxes for international stocks; Bloomberg U.S. Aggregate Bond Index for fixed income (1970–1975: Ibbotson U.S. Intermediate Term Government Bonds Total Return Index); and Citigroup 3-Month T-Bill for cash or equivalent (1970–1977: Ibbotson U.S. 30-Day T-Bill Total Return Index). Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please see schwab.com/indexdefinitions. Past performance is no guarantee of future results.