As investors enter retirement they often become more conservative in their investment portfolios.

These investors feel comfortable with their amount of savings but would like to earn more than the S&P on these funds.

The best conservative version of Stars is referred to as the 10/40 version. Usually the TQQQ percent is rebalanced to 10%. In correction years when TQQQ is down 40% from the previous year close, TQQQ is rebalanced to 40%. The percentage TQQQ is increased because the two years after a market correction are the best performing years.

The return over the past 14 years is 25% which is 9 percentage points per year greater than the S&P. If the market correction occurs in one year the drawdown is only about 6 percentage points greater than the S&P.

If you replace your worst 10% of your portfolio you will also add another 3 percentage points to your portfolio performance because the worst performer is usually about 30% below the S&P.