Asset Allocation Model Software with 93 Mutual Fund Picks).

Below are the actual returns for the same model portfolios assuming your total annual investment management fees and trading expenses are 0.5%, which is considered low. This is not the mutual fund/life insurance company management fee, it's the fees an actual person that actively manages the money would charge.

The financial tool that figures the amount of quarterly or annual investment management fees due to the advisor, is on the financial tools module. It's a good example of what's "average" when investment advisors use a multiple-tiered approach to fees.

Investment management fees are assumed to be deducted from the cash account on the first trading day of every new quarter. For example, if the total annual fee (total fee plus total trading costs) is 1.00%, then 0.25% of the account's balance on the last trading day of the previous quarter, is deducted from cash. There is no cash in the Aggressive Investment Model, so some of the bond fund is sold to pay fees.

These returns are not "hypothetical" as they are shown in the "demo." These are the actual returns from inception (January 1999) showing the returns as if you invested in January 1999, then made no more deposits or withdrawals, reinvested all capital gains and dividends, rebalanced on the first trading day of every new quarter and when allocation weights changed, and switched all of the funds on the first trading day of the month after the switch was announced.

You'll receive the spreadsheet showing all fund switches and return data (so you can audit them yourself) when you purchase the Asset Allocation Model. These three Excel spreadsheets are called Linked Model Returns.xls. Input your assumed annual investment management fees, and assumed annual trading costs, into the far left sheet of the Fee-Based Model, and all of the returns are automatically adjusted.

The most Real World thing to do is compare the Moderate Model with the S&P 500. The longer the time frame, the more pronounced the benefits of asset allocation.

Click here to see the table of returns assuming no annual management fees

Click here to see the table of returns assuming 1.0% annual management fee (average)

Click here to see the table of returns assuming 1.5% annual management fee (high)

Click here to see the table of returns for the No-Load mutual fund Model (for investors mostly)

Click here to see the table of returns for the Load Model (for pros working on a commission basis)

See another table of asset class returns that show how the negative correlation coefficients of asset allocation work so well

Time Frames	Conservative Model	Moderately Conservative Model	Moderate Model	Moderately Aggressive Model	Aggressive Model	DJIA	S&P 500	NASDAQ	Russell 2000	MSCI EAFE	Lehman Brothers Agg Bond
1999	25.83%	37.21%	48.69%	64.62%	85.37%	25.22%	19.53%	85.59%	21.26%	27.30%	-0.83%
2000	4.50%	-1.04%	-6.10%	-7.53%	-9.80%	-6.18%	-10.14%	-39.29%	-3.02%	-13.96%	11.63%
2001	3.66%	2.62%	2.97%	1.91%	1.42%	-7.10%	-13.04%	-21.05%	2.49%	-21.21%	8.42%
2002	-3.03%	-11.04%	-19.80%	-26.75%	-32.01%	-16.76%	-23.37%	-31.53%	-21.58%	-17.52%	10.27%
2003	21.88%	30.24%	35.80%	39.56%	40.41%	28.28%	28.68%	29.28%	47.25%	17.41%	4.11%
2004	11.71%	13.79%	14.95%	15.88%	15.21%	5.32%	10.87%	8.59%	18.33%	10.18%	4.34%
2005	9.84%	11.63%	13.10%	14.21%	13.86%	1.72%	4.91%	1.37%	4.55%	25.96%	2.43%
2006	11.69%	13.66%	15.59%	16.56%	16.60%	19.05%	15.79%	9.52%	18.37%	13.81%	4.33%
2007	15.45%	20.26%	21.88%	22.72%	22.24%	8.89%	5.49%	9.81%	-1.57%	11.17%	6.97%
The Month of March '08	-0.80%	-0.97%	-1.52%	-1.90%	-2.22%	0.12%	-0.43%	0.34%	0.42%	-1.05%	0.34%
2008 YTD (31 Dec '07 to 31 March '08)	-2.40%	-5.01%	-7.18%	-9.33%	-10.81%	-7.01%	-9.45%	-14.07%	-9.90%	-8.91%	2.17%
Last 12 Months	8.45%	8.60%	7.13%	5.47%	3.79%	1.59%	-5.08%	-5.89%	-13.00%	-2.70%	7.67%
Last 3 Years Annualized Average	10.69%	12.88%	14.04%	14.40%	13.81%	7.78%	5.85%	4.46%	5.06%	45.50%	5.48%
Last 5 Years Annualized Average	12.31%	15.22%	16.92%	17.72%	17.32%	11.45%	11.32%	11.19%	6.77%	21.40%	4.58%
Annual Average Since Inception (31 Dec '98 - Monthly compounding)	9.40%	10.16%	10.21%	10.48%	10.40%	5.29%	2.45%	0.42%	14.90%	6.19%	5.76%
Last 3 Years Cumulative	35.63%	43.83%	48.30%	49.73%	47.43%	25.20%	18.60%	14.00%	15.95%	13.32%	17.35%
Last 5 Years Cumulative	84.51%	113.06%	131.63%	140.96%	136.42%	71.91	70.98%	69.93%	100.25%	163.73%	25.12%
Cumulative Since Inception (31 Dec '98 - Monthly compounding)	137.75%	154.91%	156.01%	162.61%	160.64%	61.14%	25.05%	3.94%	83.28%	74.30%	67.92%
	Conservative Model	Moderately Conservative Model	Moderate Model	Moderately Aggressive Model	Aggressive Model	DJIA	S&P 500	NASDAQ	Russell 2000	MSCI EAFE	Lehman Brothers Agg Bond