5 Age-Based Portfolio Moves Financial Advisors Swear By
Written by
Chris Adam
Edited by
Jenna Klaverweiden
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Financial advisors often talk to people of many ages about their investment goals and options. Depending on the clients’ stage in life, the portfolio tips advisors give can vary significantly.
Here are some expert-backed portfolio moves that financial advisors told GOBankingRates may work well for people of different ages.
20s and 30s: Embrace Growth With Discipline
Those in their 20s and 30s have a lot of time to grow their money. “When I talk with people in their 20s and 30s, what I tend to see work best is simply staying invested and giving their money time to do its thing,” said Taylor Kovar, CFP, CEO of 11 Financial.
“Focus on aggressive long-term growth while keeping risk manageable,” said Christopher Stroup, founder and president of Silicon Beach Financial. “Maximize contributions to retirement accounts and take full advantage of employer matches. Diversify early, and start building an emergency fund. Avoid lifestyle inflation, but use this decade to experiment with tax-advantaged investments and learn how your portfolio reacts to market cycles.”
30s and 40s: Balance Growth With Stability
According to Stroup, this is a prime time for scaling wealth.
“Continue equity exposure but increase allocation to bonds or other lower-volatility assets gradually,” he said. “Prioritize paying down high-interest debt and funding education or business goals. Regularly revisit asset allocation, tax strategy and retirement projections to stay aligned with evolving income and responsibilities.”
40s and 50s: Protect Assets, Reduce Volatility
This is a time to focus on risk management and portfolio resilience, Stroup said.
“Gradually shift from aggressive growth to a mix that preserves capital while maintaining upside,” he added. “Maximize tax-advantaged contributions, optimize diversification across asset classes and plan for liquidity needs tied to potential business exits, family obligations or home investments.”
50s and 60s: Strategically Prepare for Retirement
According to Stroup, this is a time to prioritize generating sustainable retirement income and minimizing sequence-of-returns risk. Investors will also want to ensure portfolios balance growth with capital preservation.
In addition, consider annuities, bonds or dividend-focused strategies to provide cash flow, Stroup said. Finally, review estate and tax strategies and consolidate accounts where it reduces complexity and cost while maintaining flexibility for retirement transitions, per Stroup.
60-Plus: Focus On Income, Flexibility and Legacy
“Emphasize income stability, tax efficiency and capital protection,” Stroup said. “Fine-tune withdrawal strategies, manage Social Security timing and reduce exposure to high-volatility investments.”
Stroup said to ensure portfolios support lifestyle goals and leave room for legacy planning, while keeping emergency and healthcare funds accessible. Consider working with advisors to coordinate cash flow and tax-efficient withdrawals, Stroup added.
Melanie Musson, a finance expert with Quote.com, said that reducing risk as people age is critical to financial wellness. “By the time you’re 65, your retirement portfolio does not have the time to recover from a market crash,” she said.
Editor’s note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
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