Cash vs Bonds vs Index vs Aggressive: Which Method Wins
Results
Visualization
How It Works
Each method is modeled with a single assumed annual return: cash ~0.5%, bonds ~3%, a broad index ~7%, and aggressive growth ~10%. We apply the future-value of an annuity with your starting amount and monthly contributions over the years. The chart ranks the four methods so you can see both the return advantage and how the curves separate over time. The rates are illustrative assumptions, not forecasts.
What Should You Do?
Match the method to your timeline. Money needed within a few years belongs in cash or short bonds where volatility is low. Money for 15-plus years can lean into index or aggressive growth to capture compounding. A mix, such as index funds, captures most of the growth with less single-method risk than aggressive bets. Reassess as the goal date approaches and shift toward safer methods to protect what you have built.
Frequently Asked Questions
Are these returns realistic?
They are illustrative assumptions based on typical long-run ranges; actual results vary and can be negative for risky methods.
Which method is safest?
Cash at 0.5% shows the smallest balance but the smallest swings; it protects principal best.
Why not always pick aggressive?
Aggressive methods can lose heavily in downturns and may force selling low if you need the money soon.
What about inflation?
Cash and bonds can lose purchasing power after inflation; see the inflation simulator for the real-value effect.