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Your 60s are when retirement actually starts for most people. The portfolio you spent decades building is now meant to support you for 25-35 years. The job changes from "grow this" to "make this last."
| Asset class | Recommended % | Notes |
|---|---|---|
| US stocks | 30-45% | Long-term inflation hedge |
| International stocks | 5-15% | Global diversification |
| Bonds | 35-45% | Income + stability |
| Cash | 5-10% | 2 years of withdrawals |
| Alternatives | 0-5% | Optional |
Total stock allocation: 40-55%. Bonds: 35-45%. Cash: 5-10%. The shift from your 50s is gradual but real. By age 65, most retirees are around 50/50 stocks and bonds, with a cash buffer for the next 1-2 years of expenses.
Enter your holdings and see your portfolio as a pie chart.
Open Portfolio Visualizer →The instinct in retirement is to flee to safety — bonds, CDs, cash. But "safe" assets struggle with inflation. Over 30 years of retirement, even modest 3% inflation cuts purchasing power by 60%.
Stocks are the only asset class that has reliably beaten inflation over multi-decade periods. A retiree at 100% bonds is "safe" from short-term swings but slowly losing purchasing power year after year.
| $1 today | Worth in 30 years at... | ...3% inflation | ...5% inflation |
|---|---|---|---|
| $1.00 | 30 years | $0.41 | $0.23 |
| 25 years | $0.48 | $0.30 | |
| 20 years | $0.55 | $0.38 | |
| 15 years | $0.64 | $0.48 | |
| 10 years | $0.74 | $0.61 |
If you are 65 and might live to 95, that is 30 years. A 100% bond portfolio quietly loses you 60% of your purchasing power over that period. You need some stock exposure to keep up.
Retirees often build their allocation around predictable income, not just growth:
| Income source | Vehicle | Yield | Risk |
|---|---|---|---|
| Treasury bonds | BND, VGIT | 3-5% | Low |
| Corporate bonds | LQD, VCIT | 4-6% | Low-Medium |
| Dividend stocks | SCHD, VYM | 3-4% | Medium |
| Real estate | VNQ | 3-5% | Medium |
| Cash | HYSA | 4-5% | None |
A retiree with $1M in a balanced income-focused portfolio could realistically generate $30K-$50K of dividends and interest per year, plus capital appreciation over time. Combined with Social Security ($25K-$40K average), that supports a $60K-$90K annual lifestyle.
Enter your holdings and see your portfolio as a pie chart.
Open Portfolio Visualizer →Sample $1,000,000 portfolio for a 65-year-old who just retired:
| Holding | Ticker | Amount | % |
|---|---|---|---|
| Total US Stock Market | VTI | $350,000 | 35% |
| Total International Stock | VXUS | $100,000 | 10% |
| Dividend stocks | SCHD | $100,000 | 10% |
| Total US Bond Market | BND | $250,000 | 25% |
| Short-Term Treasuries | VGSH | $80,000 | 8% |
| REITs | VNQ | $50,000 | 5% |
| Cash (HYSA) | — | $70,000 | 7% |
55% stocks (including REITs), 33% bonds, 7% cash, 5% other. The cash and short-term treasuries cover 2-3 years of withdrawals so the retiree never has to sell stocks during a downturn.
The Trinity Study and follow-up research suggest a 60/40 stock/bond portfolio can support a 4% annual withdrawal (adjusted for inflation) for 30 years with high probability. That is the famous "4% rule." It assumes you do not panic during downturns and stick to the 4% withdrawal pace.
A more conservative 50/50 portfolio supports closer to 3.5% withdrawals over 30 years. A more aggressive 70/30 supports 4.5% but with more volatility along the way. The asset allocation drives the safe withdrawal rate.
See the 4% rule guide for detail.
Use the portfolio visualizer to chart your current holdings. Compare against the income-first allocation above. Most retirees do best with 40-60% stocks (including REITs and dividend stocks), 30-45% bonds, and a 1-2 year cash buffer.
The goal is enough growth to outpace inflation, enough bonds to weather downturns, and enough cash to never have to sell stocks at the wrong time.