My daughter is a millionaire

[DcifrThs]

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Cat, isn't the real issue here that annual variance is essentially meaningless when viewed over a 65 year timeframe?

In other words, If it can be demonstrated that avg annual returns over the very long term for an equity index only port will beat avg annual returns for a mixed port, doesn't annual risk become meaningless? (simply because max risk does not create a RoR situation, even to a black swan event)

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Yes, trying to make the argument that you have zero risk of loss over 20 years is overstating the case, it doesn't matter if the odds are zero or just tiny. Clearly you can never rule out hyperinflation, gross taxation changes, war, etc, all of which can also wreak havoc on bond returns.

The real argument is that beta is not very important over long periods (20 years +), maximizing your return is.

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traditionally, maxing return = investing in riskiest asset.

see my other post above and then ask me again if it still isn't clear that maxing return doesn't mean putting all your money in the highest returning asset you can find.

Barron