Balanced Portfolio

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Balanced Portfolio

Finding the right balance between fixed income and growth within your retirement plan is a challenge but certainly one that can be managed.

Here is the challenge:

In retirement, we want our investments to generate income for us which means our investments are paying out money to us in the form of a ‘ retirement paycheck’. HOWEVER we are unsure how long we will live so we also need our investments to have some ‘growth’ component so our investment portfolio continues to generate income for us no matter how long we live.


Therein lies the rub as they say.

Adding to the challenge of not knowing how long we will live there are some other factors that add to the challenge such as:

  • Your risk tolerance
  • Your chosen standard of living in retirement
  • Market volatility
  • Unexpected life events

Even with so many factors to consider there are few tips that apply to most people who are just entering or in retirement:

  • Just as was recommended when you worked, having a portion of your portfolio in short-term liquid assets (those that can be converted to cash quickly) is still an important component of your retirement portfolio. We recommend maintaining this rainy day fund throughout your retirement years to help offset potential downturns in the market
  • Stock allocation within a financial portfolio should vary with age. For the ‘typical’ investor, the key point is that as someone progresses from early retirement to later retirement their stock allocation should decline.
  • Consider your entire portfolio and all income streams. If you receive Social Security or other guaranteed fixed payments (e.g. a pension) your exposure to the volatility of the stock market is less so you may be able to allocate more of your investment portfolio in stocks.

A retirement portfolio requires balancing income, stability, and growth. For most people, finding the proper balance between risk and return can be quite challenging. And unfortunately there is no ‘one size fits’ all answer that solves this challenge.

We can help you navigate through these waters so your retirement is spent doing the things you want to do with the confidence that your personalized plan is working for you. Please give us a call to set up a time to meet.

Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected.