Conservative or aggressive portfolio?
Two mixes, two assumed returns, and thirty years of compounding between them — on screen the gap can look decisive. It is worth remembering what produced it: a number you chose. The useful question is not which mix wins, but how much of the plan rests on that assumption being right.
What drives the gap
- The return you assign to each mix, which is an assumption rather than a forecast.
- The horizon you are investing over, since compounding needs years to separate the two.
- How much of the money you might need early, before the horizon is anywhere near done.
- The contributions you make, their size and the month they start.
- The reserve held outside the portfolio, which is what lets you leave it alone.
Only the assumption should differ
Keep contributions, the time horizon, and the reserve identical in both copies, and change only the assumed return. Any other change will also affect the difference between the plans. With just one variable changed, the result clearly shows the long-term effect of that assumption.
Then run the pessimistic case. Lower the higher mix by two points and see whether the conclusion survives; if it does not, the plan was resting on the assumption rather than on the strategy. A plan is more useful when it still works at a disappointing return than when it looks impressive at a hopeful one.
Questions worth testing
- Does the conclusion still hold if the higher assumption turns out two points lower?
- How much of this money might you need before the horizon is over?
- What is the reserve outside the portfolio, and would it stop you selling early?
- How large is the gap after ten years compared with after thirty?
How to read the result
The returns are assumptions, not forecasts, and the plan follows a single smooth path. It does not show volatility, prolonged downturns, or drawdowns—the conditions in which portfolio mixes differ most. Worthifi does not assess your tolerance for risk or suggest that either mix is suitable for you. This is a planning illustration, not investment advice.
How it works in the app
Give different buckets different expected returns, then re-weight how new contributions split between them. See the blended return and each bucket's balance shift as you change the mix.
- Open Investments → Edit portfolio.
- Add or edit a bucket's expected return, or plan a “Change a bucket's return” / “Change allocation” for later.
- Check the blended return and per-bucket balances.
Model this yourself