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Investing Specialists

A Conservative Retirement Portfolio in 3 Buckets

Geared toward retirees with shorter time horizons, this portfolio includes a heavy stake in bonds and cash.

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Many retired investors are comfortable embracing a healthy equity stake in their portfolios. That's a sensible tack for retirees with longer time horizons, those with generous income streams from nonportfolio sources like pensions, and those who know that they want to leave money behind for their children, other loved ones, or charity.

This Conservative Bucket Portfolio has a more modest goal: preserving purchasing power and delivering living expenses for the retiree who has an approximately 15-year time horizon (that is, life expectancy). This portfolio does stake more than 30% in equities, but it also holds more than 50% of its assets in bonds and another 12% in cash. 

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Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.