Advisors Weigh in on the 60/40 Portfolio Strategy for Seniors
Financial Situation Overview
The couple, aged 73 and 70, has significant savings and investments:
- $235,000 in a savings account
- $250,000 in Roth IRAs each
- $1.675 million in a brokerage account
- $1.55 million in a 401(k)
Investment Concerns
Currently, almost all of their investments—excluding the two Roth IRAs—are solely in stocks. This heavy exposure to stock market volatility raises concerns about potential risks as they age.
Strategies for Retirement
Financial advisors recommend considering a shift to a 60/40 portfolio to balance growth and risk. The 60/40 strategy generally consists of 60% stocks and 40% bonds, allowing for some growth potential while providing a safety net through bond investments.
Conclusion
- Assess current financial stability
- Consider personal risk tolerance
- Consult with a financial advisor to tailor a strategy
Overall, navigating investments in your 70s requires careful planning and adjustments tailored to personal financial goals.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.