For do-it-yourself investors, here are the two funds you might consider using to create your well diversified portfolio at Vanguard:

Equity portion: Vanguard Total World Stock Index Fund - VTWSX

Fixed income portion: Vanguard Total Bond Market Index Fund - VBMFX

Here are approximate worst 12-month declines (total annual return) for a portfolio that is:

100% fixed income: about -5% in 12 months

20% equity/80% fixed income: -10%

30% equity/70% fixed income: -20%

50% equity/50% fixed income: -30%

70% equity/30% fixed income: -40%

100% equity: over 50% loss in 12 months

Of course, these numbers are based on past performance of hypothetical portfolios. There is NO way to know what kind of loss the future can bring. We just want you to invest "risk-first."

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