Portfolio model comparison

Compare reference allocations under one transparent set of hypothetical shocks, spending and fee assumptions.

Family Office Models15 October 2026Educational reference

Reference allocation

Hypothetical scenario

Starting portfolio (USD)

Annual spending (USD)

Annual fee (%)

Allocation and scenario inputs

Asset category	Weight %	Shock %
Public equities	Public equities weight percent	Public equities shock percent
Bonds	Bonds weight percent	Bonds shock percent
Cash	Cash weight percent	Cash shock percent
Illiquid assets	Illiquid assets weight percent	Illiquid assets shock percent

Total allocation100.0%

All amounts and shocks are assumed. Cash earns 0% unless its shock is changed. The fee is charged against starting value. Spending occurs after the shock.

Same assumptions, different references.

Each row uses the shocks, portfolio amount, spending and fee above.

Reference	Asset shock	After spending & fee	Starting cash runway

The arithmetic

Weighted shock = sum of each allocation weight multiplied by its asset shock. Ending value = shocked portfolio minus annual spending minus the fee on starting value, floored at zero. A zero residual does not represent solvency or an available funding facility.

The decision

The reference with the smallest loss in a chosen scenario is not necessarily the best portfolio. Examine multiple scenarios, liquidity needs, outside exposures and the limitations of the model.

Read the stress-testing guide

Starting cash reserve	$1,000,000
Starting illiquid assets	$1,000,000
One-year fee assumption	$50,000