Por$olio Endurance!
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2,)$22!('!7#/%10%1!+/)>$,2!/%&!2-$%&0%1!.$;$.25!"#$!)$28.*%1!+(&$.2!$2*+/,$!-()?(.0(!28);0;/.!
0%!,$)+2!('!2,/*2*7/.!-)(:/:0.0*$25
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')/+$5!J$),/0%!/2-$7,2!('!,#$2$!'/7,()2!/)$!40,#0%!/%!0%;$2,()32!7(%,)(.!4#0.$!(,#$)2!/)$!%(,5!
K$,32!:)0$A@!7(%20&$)!,#$+5!
Asset Mix
622$,!+0E!&$27)0:$2!,#$!)/*(!('!2,(7>2!,(!:(%&2!0%!/!-()?(.0(5!"#02!&$,$)+0%$2!)02>!$E-(28)$!/%&!
$E-$7,$&!-$)'()+/%7$H!/%&!02!(%$!('!,#$!+(2,!0+-(),/%,!&$7020(%2!0%;$2,()2!('!/..!/1$2!7/%!
+/>$5!L02,()07/..@H!2,(7>2!#/;$!(8,-$)'()+$&!:(%&2!/%&!(8,-/7$&!0%A/*(%!(;$)!*+$5!"#02!
)$,8)%!-)$+08+!)$A$7,2!,#$!#01#$)!)02>!('!(4%0%1!2,(7>25
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O$$-!0%!+0%&!,#/,!)02>!/%&!)$,8)%!1(!,(1$,#$)5!6!#01#$)!/..(7/*(%!,(!$N80*$2!0%7)$/2$2!,#$!)02>!
('!$E-$)0$%70%1!-$)0(&2!('!-(()!)$,8)%2!&8)0%1!)$*)$+$%,5!P8,!0'!@(8!7/%!#/%&.$!,#$!)02>H!#/;0%1!
+()$!$N80,@!$E-(28)$!0%!/!-()?(.0(!$%#/%7$2!0,2!)$,8)%!-(,$%*/.5!Q)(4,#!7/%!:)0%1!#01#$)!7/2#!
A(4H!0%A/*(%!-)(,$7*(%H!/%&!-()?(.0(!$%&8)/%7$!(;$)!*+$5!"#02!02!4#@!+(2,!/&;02()2!:$.0$;$!
,#/,!+(2,!0%;$2,()2!2#(8.&!#/;$!/%!$N80,@!7(+-(%$%,!0%!,#$0)!-()?(.0(2H!40,#!/7,8/.!4$01#*%1!
&$-$%&0%1!(%!(%$32!*+$!')/+$H!)02>!,(.$)/%7$H!/%&!2-$%&0%1!A$E0:0.0,@5!!!
Spending Level
R()?(.0(!40,#&)/4/.!02!,@-07/..@!&$27)0:$&!0%!,$)+2!('!/!2-$70S$&!&(../)!/+(8%,!T$515H!UVWHWWW!
-$)!@$/)X!()!/!-$)7$%,!('!/%%8/.!-()?(.0(!;/.8$!T$515H!VY!('!/22$,2!$/7#!@$/)X5!Z$0,#$)!+$,#(&!02!
0&$/.H!#(4$;$)B/%&!'()!&0C$)$%,!)$/2(%25!P)0$A@!7(%20&$)!$/7#!(%$I!
!"#$%&#'(')**+,(+-)./01!!40,#&)/40%1!/!SE$&!/+(8%,!$/7#!@$/)!/%&!/&=82*%1!0,!'()!
0%A/*(%!7/%!-)(;0&$!/!2,/:.$!0%7(+$!2,)$/+!/%&!-)$2$);$!@(8)!.0;0%1!2,/%&/)&!(;$)!*+$5!
P8,!,#$!-()?(.0(!+/@!28);0;$!(%.@!0'!'8,8)$!40,#&)/4/.2!)$-)$2$%,!/!2+/..!-)(-()*(%!('!,#$!
-()?(.0(32!;/.8$5!<%$!/7/&$+07!2,8&@!N8/%*S$&!,#02!/+(8%,5![,!'(8%&!,#/,!/!)$*)$$!40,#!/,!
.$/2,!/!\WY!2,(7>!/..(7/*(%!7/%!40,#&)/4!8-!,(!]Y!('!%/%2+*!-()?(.0(!;/.8$!T/&=82,$&!'()!
0%A/*(%!$/7#!@$/)XH!/%&!$%=(@!/!#01#!-)(:/:0.0,@!('!%$;$)!)8%%0%1!(8,!('!4$/.,#5
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/!#01#$)!40,#&)/4/.!/+(8%,!02!%(,!.0>$.@!,(!:$!282,/0%/:.$H!$2-$70/..@!0'!,#$!-()?(.0(!'/7$2!
/%!$E,$%&$&!-$)0(&!('!%$1/*;$!)$,8)%25!
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+//.+*!/22$,!;/.8$!+/>$2!0,!8%.0>$.@!,#/,!@(8!40..!&$-.$,$!)$*)$+$%,!/22$,2!:$7/82$!/!
28&&$%!&)(-!0%!+/)>$,!;/.8$!4(8.&!:$!/77(+-/%0$&!:@!/!-)(-()*(%/.!&$7.0%$!0%!2-$%&0%15!
P8,!,#02!+$,#(&!7/%!-)(&87$!40&$!240%12!0%!@(8)!.0;0%1!2,/%&/)&!4#$%!0%;$2,+$%,!)$,8)%2!
/)$!;(./*.$5!
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<%$!4/@!02!,(!40,#&)/4!7/2#!A(4!/77()&0%1!,(!/!)8.$!,#/,!7(+:0%$2!-/2,!2-$%&0%1!T$515H!/%!
/;$)/1$!('!,#$!-/2,!,#0),@`20E!+(%,#2!('!7/2#!A(4X!40,#!/!-/@(8,!)/,$!/--.0$&!,(!78))$%,!
-()?(.0(!;/.8$5!a(8!7/%!4$01#,!,#$2$!'/7,()2!,(!'/;()!@(8)!-)$'$)$%7$!'()!$0,#$)!+()$!2,/:.$!
7/2#!A(4!()!/!1)$/,$)!7#/%7$!('!-()?(.0(!28);0;/.5![%!$C$7,H!@(8!/)$!782,(+0b0%1!@(8)!
40,#&)/4/.2!,(!2+((,#!(8,!7(%28+-*(%!4#0.$!)$2-(%&0%1!,(!/7,8/.!0%;$2,+$%,!-$)'()+/%7$5!
Investment Time Frame
[%;$2,+$%,!*+$!#()0b(%!+/@!:$!,#$!#/)&$2,!,(!$2*+/,$H!$2-$70/..@!0'!0,!02!,#$!2/+$!/2!@(8)!
.0'$2-/%5![%!,#02!7/2$H!@(8!7/%!(%.@!18$22!#(4!.(%1!@(8)!-()?(.0(!+82,!28--(),!2-$%&0%15!['!@(8!
-./%!,(!:$N8$/,#!/22$,2H!@(8)!0%;$2,+$%,!*+$!')/+$!+/@!$E,$%&!:$@(%&!@(8)!.0'$*+$5!"#02!
+/@!0%A8$%7$!@(8)!)02>!/%&!2-$%&0%1!&$7020(%2!/2!4$..5!
"0+$!')/+$!'()7$2!/!,)/&$(C!:$,4$$%!,#$!2#(),!/%&!.(%1!,$)+5!_$*)$$2!40,#!/!.(%1$)!
0%;$2,+$%,!*+$!#()0b(%!+01#,!7#((2$!/!#01#$)!$E-(28)$!,(!$N80*$25!P8,!,#$@!+/@!#/;$!,(!
(C2$,!,#02!)02>!:@!:$0%1!+()$!A$E0:.$!/:(8,!2-$%&0%1!(;$)!*+$5!D.&$).@!)$*)$$2!/%&!(,#$)2!40,#!
/!2#(),!*+$!#()0b(%!+/@!7#((2$!/!.$22!)02>@!/..(7/*(%!()!/!#01#$)!-/@(8,!)/,$H!/.,#(81#!,#$@!
7/%!$E-$)0$%7$!)020%1!2-$%&0%1!.$;$.2H!,((5![%!/%@!7/2$H!)$*)$$2!2#(8.&!,#0%>!7/)$'8..@!/:(8,!
$N80,@!$E-(28)$!/%&!/;(0&!,/>0%1!+()$!)02>!,#/%!,#$@!7/%!/C()&5!
Considera>ons
R./%%0%1!0%;(.;$2!/228+-*(%2!/:(8,!,#$!'8,8)$B/228+-*(%2!,#/,!+/@!%(,!-/%!(8,5!6.,#(81#!
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@(8)!.0'$2,@.$!+01#,!7#/%1$!0'!'8,8)$!$7(%(+07!/%&!S%/%70/.!7(%&0*(%2!/)$!+87#!&0C$)$%,!,#/%!
-)(=$7,$&5!c()!0%2,/%7$H!@(8!+/@!/228+$!/%!/;$)/1$!)$,8)%!:/2$&!(%!#02,()07/.!-$)'()+/%7$5!
P8,!,#$)$!02!%(!7$),/0%,@!,#/,!'8,8)$!-()?(.0(!)$,8)%2!40..!)$2$+:.$!,#$!-/2,H!)$1/)&.$22!('!*+$!
')/+$5!d()$(;$)H!2#(),`,$)+!)$28.,2!+/@!;/)@!&)/2*7/..@H!4#07#!7(8.&!'()7$!#/)&!S%/%70/.!
7#(07$25![%;$2,()2!2#(8.&!,#0%>!0%!,$)+2!('!-)(:/:0.0,@H!%(,!#02,()@5!
d/%/10%1!/22$,!+0EH!-/@(8,H!/%&!*+$!#()0b(%!0%$;0,/:.@!0%;(.;$2!,)/&$(C25!DE#0:0,!F!:$.(4!
0..82,)/,$2!,#$!&@%/+0725!c()!$E/+-.$H!/!:(%&`&(+0%/,$&!-()?(.0(!40,#!/!.(4$)!$E-$7,$&!)$,8)%!
+/@!280,!0%;$2,()2!40,#!/!2#(),$)!*+$!#()0b(%H!()!)$N80)$!,#$+!,(!/77$-,!/!.(4$)!-/@(8,!)/,$!,(!
0%7)$/2$!,#$!(&&2!('!-()?(.0(!28);0;/.5!6!-()?(.0(!40,#!/!#01#$)!/..(7/*(%!,(!$N80*$2!+/@!:$!
/--)(-)0/,$!'()!2(+$(%$!40,#!/!.(%1!*+$!#()0b(%!()!/!2,)(%1!&$20)$!'()!/!#01#!-/@(8,!)/,$H!:8,!
/!#01#$)!/228+-*(%!('!)02>!/.2(!)$28.,2!0%!1)$/,$)!8%7$),/0%,@!/:(8,!'8,8)$!4$/.,#5!_$*)$$2!4#(!
,/>$!,#02!)(8,$!+82,!:$!/:.$!,(!#/%&.$!,#$!)02>!$+(*(%/..@H!/%&!,#$@!2#(8.&!:$!)$/&@!,(!/&=82,!
,#$0)!.0'$2,@.$!0%!)$2-(%2$!,(!+/)>$,!&(4%,8)%25![%!'/7,H!0%;$2,()!A$E0:0.0,@!-./@2!/!)(.$!0%!/..!('!
,#$!,)/&$(C25!
Exhibit 1: Basic Tradeoffs in Por$olio Survival
e !
c0%/..@H!/.,#(81#!@(8!7/%%(,!'8..@!7(%,)(.!,#$2$!/%&!(,#$)!'/7,()2!0%;(.;$&!0%!-()?(.0(!
$%&8)/%7$!0%!)$*)$+$%,H!#/;0%1!+()$!4$/.,#!7/%!0+-)(;$!,#$!(&&2!('!#/;0%1!/!.$22!2,)$22'8.!
S%/%70/.!.0'$5!6!+()$!28:2,/%*/.!%$2,!$11!+01#,!$%/:.$!@(8!,(!,/>$!'$4$)!)02>2H!$%=(@!/!#01#$)!
282,/0%/:.$!2-$%&0%1!)/,$H!()!$E,$%&!,#$!-)(&87*;$!.0'$!('!@(8)!-()?(.0(5!
Endnotes
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!J((.$@H!R#0.0-!K5H!J/).!d5!L8::/)&H!/%&!f/%0$.!"5!G/.b5!Fggh5!i_$*)$+$%,!j/;0%12I!J#((20%1!/!G0,#&)/4/.!_/,$!
"#/,![2!j82,/0%/:.$Hk!7788(9).,/+*!MWI!F\lMF5!6.2(!2$$I!P$%1$%H!G0..0/+!R5!!Fgg]5!if$,$)+0%0%1!G0,#&)/4/.!_/,$2!
m20%1!L02,()07/.!f/,/Hk!9).,/+*()4(:%/+/$%+*(3*+//%/;!nI!FnF5!
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1(;$)%+$%,!:(%&2!/%&!^5WY!0%A/*(%5!j(8)7$2I!j,/%&/)&!o!R(()32![%&$E!j$);07$2!Q)(8-!'()!joR!VWW![%&$Ep!.(%1`
,$)+!1(;$)%+$%,!:(%&2!/%&!0%A/*(%!-)(;0&$&!:@!!0)$<=>(?)/'=>(?%**>(+/'(8/@+2)/(A#+,B))<CH![::(,2(%!622(70/,$25!!!
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:),(-),#(+,2$*#=>(6%=%0().,(D#B=%0#(DDDE)"#/$%,$*#D#+*0FE$)-(
7**(#G",#==%)/=()4()"%/%)/(+,#(=.BH#$0(0)($F+/;#(D%0F).0(/)2$#(%/(,#+$2)/(0)(=F%I%/;(-+,<#0(
$)/'%2)/=E(JF%=(%/4),-+2)/(%=(4),(#'.$+2)/+*(".,")=#=()/*K(+/'(=F).*'(/)0(B#($)/=%'#,#'(
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M"#/N%,$*#(O#+*0F(3+,0/#,=(%=(+/(%/6#=0-#/0(+'6%=),(,#;%=0#,#'(D%0F(0F#(!0+0#()4(N)//#$2$.0E(