Do 70/30 Portfolios Make Sense for Retirees?
January 6, 2021 by Ginger Szala
As clients age, the decumulation of retirement savings takes center stage. This process begs the question: How can advisors adjust current portfolios, even slightly, to best help older clients?
Christine Benz, Morningstar’s director of personal finance recently reviewed the portfolio of a married couple in their 70s, who mainly live off his Social Security and her teacher pension, as well as a sizable investment portfolio of $1.4 million. They bought their home in the early 1970s for $43,000, and it’s valued at $1.3 million today.