As you begin to rely on your investments for income, you may feel most comfortable investing heavily in income-generating bonds and cash. But to stay ahead of inflation over the decades ahead, we suggest that you keep a portion of your savings in growth stocks as well.
Allocate no more than 60% of your money to stocks—and potentially less, depending on your circumstances and comfort with risk.
|Age||Recommended asset allocation||Stocks vs. bonds/cash|
|60–69||Moderate||60% stocks, 40% bonds/cash|
|70–79||Moderately conservative||40% stocks, 60% bonds/cash|
|80+||Conservative||20% stocks, 80% bonds/cash|
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