Equity Model Portfolio
100% stocks for maximum long-run compounding.
25+ years
~50%+
Young investors with a 25+ year horizon who are comfortable with 50% drawdowns and can continue contributing through them.
Why This Allocation
Stocks are the only major asset class that has reliably grown purchasing power over long horizons, and a 100% equity portfolio maximizes that exposure. The 60/40 US-to-international split approximates global market-cap weight, eliminating single-country concentration. The catch is behavioral, not mathematical: an all-equity portfolio lost roughly half its value in 2008, and every investor who sold then locked in those losses permanently. This allocation only works if you never sell — which is a bigger ask than it sounds.
Best for
- Investors in their 20s and 30s
- A taxable account you won't touch for decades
- Those who have proven they won't panic-sell
Things to Consider
- Expect one or more 50% drawdowns over a lifetime
- No dry powder for rebalancing
- Must be paired with a separate cash buffer
Related Reading
Model portfolios are educational reference examples of common allocation strategies. They are not personalized investment advice. Your optimal mix depends on your individual age, income, goals, tax situation, and tolerance for risk.
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