Real-world examples of balanced retirement portfolio strategies

Starter examples of balanced retirement portfolio examples

Let’s start with concrete portfolios you can imagine holding in a 401(k) or IRA. These examples of balanced retirement portfolio examples are not prescriptions, but they show how different mixes can serve different retirement goals.

Picture a 55-year-old professional in the U.S. earning a solid income, with retirement roughly 10–12 years away. They want growth but can’t afford to get wrecked by a deep bear market right before retirement.

A very common example of a balanced retirement portfolio for this person might look like this:

• About 55–60% in diversified stock funds (U.S. and international)
• About 35–40% in high-quality bonds (U.S. Treasuries, investment-grade corporate bonds)
• About 5% in cash or cash-like holdings (money market fund, short-term Treasury bills)

That’s your classic “60/40” style structure, adapted slightly for pre-retirement. In 2024–2025, with interest rates still meaningfully higher than they were in the 2010s, that bond slice isn’t just a safety blanket—it also throws off more income than it used to. According to the Federal Reserve’s data on Treasury yields, intermediate-term government bonds have been offering yields well above the sub-2% world we got used to after the financial crisis (federalreserve.gov).

From here, we can branch into several other real examples of balanced retirement portfolio examples, each tuned to a different situation.

Classic 60/40: The benchmark example of a balanced retirement portfolio

When people talk about balanced retirement portfolio examples, the 60/40 mix—60% stocks, 40% bonds—is usually the reference point. It’s not perfect, but it’s a proven starting place.

A realistic 60/40 example might look like this in a U.S.-based IRA or 401(k):

• 40% U.S. total stock market index fund
• 20% international stock index fund
• 25% U.S. total bond market index fund
• 10% intermediate-term Treasury bond fund
• 5% cash or money market fund

This example of a balanced retirement portfolio tries to balance three things:

• Growth from stocks to outpace inflation over a 20–30 year retirement
• Stability and income from bonds, especially now that yields are higher
• Liquidity from cash for short-term needs and to avoid selling stocks in a downturn

Historically, a 60/40 portfolio has delivered lower volatility than an all-stock portfolio while still capturing a large share of long-term equity returns. Vanguard’s long-term research on balanced portfolios has often used 60/40 as a reference mix when modeling retirement outcomes and withdrawal strategies (vanguard.com).

Is 60/40 perfect for everyone in 2025? No. But as one of the best examples of a balanced retirement portfolio that’s widely studied, it’s a useful benchmark to compare other examples against.

Income-focused 40/50/10: A balanced portfolio for new retirees

Now imagine someone who just retired at 67. Markets feel unpredictable, inflation is still a concern, and they want steady income without abandoning growth.

Here’s a realistic example of a balanced retirement portfolio for this stage:

• 40% stocks
  • 25% broad U.S. equity index fund
  • 10% international equity index fund
  • 5% U.S. dividend-focused equity fund
• 50% bonds
  • 30% U.S. investment-grade bond fund
  • 10% Treasury Inflation-Protected Securities (TIPS)
  • 10% short-term bond fund
• 10% cash or ultra-short-term instruments

This structure reflects several 2024–2025 realities:

• Higher bond yields mean the bond slice can shoulder more of the income burden than in the ultra-low-rate decade.
• TIPS provide some protection if inflation stays sticky, which matters for anyone expecting a 25–30 year retirement horizon. The U.S. Treasury explains how TIPS adjust with inflation on its site (treasurydirect.gov).
• A modest dividend tilt on the equity side can help with cash flow without turning the portfolio into a narrow high-yield gamble.

Among examples of balanced retirement portfolio examples, this one leans toward income and stability but still keeps enough stock exposure to help the portfolio last as life expectancy continues to rise. The Social Security Administration’s life tables show that many people retiring in their mid-60s can expect to live well into their 80s or beyond (ssa.gov).

Growth-tilted 70/25/5: For late starters or early retirees

Some people hit their 50s or even early 60s and realize they’re behind on savings. Others plan to retire early in their 50s and need their money to last 35–40 years. For them, a more growth-tilted mix can be appropriate—if they can stomach the volatility.

A growth-tilted example of a balanced retirement portfolio might look like this:

• 70% stocks
  • 45% U.S. total market
  • 20% international developed markets
  • 5% emerging markets
• 25% bonds
  • 15% core U.S. bond fund
  • 10% short-term bonds
• 5% cash

This is still a balanced retirement portfolio in the sense that it blends growth assets with stabilizers, but it clearly leans more aggressive.

Where does this fit among examples of balanced retirement portfolio examples? It’s a fit for:

• Someone in their early-to-mid 50s still working, with 10–15 years until retirement
• A confident investor with stable employment who can keep contributing during downturns
• A healthy early retiree with flexibility to adjust spending when markets are rough

The big trade-off: deeper drawdowns in bad markets in exchange for higher expected returns over decades. Historically, more stock-heavy portfolios have outperformed over long horizons, but with more volatility along the way—a pattern documented in long-run capital market studies from sources like the CFA Institute and major asset managers.

Ultra-simple 50/50: A balanced portfolio for investors who hate complexity

Not everyone wants five funds and rebalancing rules. Some people just want something they can understand at a glance.

A very clean example of a balanced retirement portfolio:

• 50% total U.S. stock market index fund
• 50% total U.S. bond market index fund

That’s it. No international, no tilts, no satellite funds.

Among all the examples of balanced retirement portfolio examples, this one scores highest on behavioral practicality. You can explain it on a napkin, monitor it once or twice a year, and rebalance when either side drifts more than, say, 5–10 percentage points.

Will you miss out on some diversification benefits by skipping international stocks? Possibly. But for many investors, the simplicity and clarity of this example outweigh the theoretical optimization of a more complex mix. Behavioral finance research often shows that portfolios people can stick with beat portfolios they abandon at the first sign of trouble.

Target-date fund as a one-fund balanced retirement portfolio

Another modern example of a balanced retirement portfolio is the target-date fund, which automatically shifts from aggressive to conservative as you approach a target year (for example, 2035 or 2045).

In a 401(k), a typical target-date fund near retirement (say, a 2030 or 2035 fund in 2025) might hold:

• Around 45–55% stocks
• Around 40–50% bonds
• A small allocation to cash or short-term instruments

Within that, the fund might own dozens of underlying index funds or ETFs, providing global diversification with one ticker symbol.

This is one of the best examples of balanced retirement portfolio examples for people who:

• Want a professionally managed glide path
• Don’t want to manually rebalance
• Prefer a single-fund solution in their employer plan

The Department of Labor has a detailed guide for plan sponsors on evaluating target-date funds, which also helps investors understand how these funds work (dol.gov).

The catch: not all target-date funds are built the same. Some stay more aggressive into retirement, others shift more conservatively. If you use this example of a balanced retirement portfolio, read the fund’s “glide path” and underlying allocation so you know what you’re actually holding.

Inflation-aware 50/35/10/5: Balancing growth, safety, and real purchasing power

Inflation has been a bigger worry in the 2020s than it was in the 2010s, and retirees feel it directly—especially in healthcare costs. The Bureau of Labor Statistics has shown that some key retirement spending categories, like medical care, can rise faster than headline inflation (bls.gov).

Here’s an inflation-aware example of a balanced retirement portfolio:

• 50% stocks
  • 30% U.S. total market
  • 15% international developed markets
  • 5% real estate investment trust (REIT) fund
• 35% bonds
  • 20% core U.S. bond fund
  • 15% TIPS fund
• 10% short-term bonds or cash equivalents
• 5% commodities or commodity-linked strategy (for investors comfortable with that risk)

Among examples of balanced retirement portfolio examples, this one stands out for explicitly trying to protect purchasing power:

• TIPS adjust principal with inflation
• REITs and equities provide potential long-term growth
• A small commodities slice can help during inflation spikes, though it adds volatility

This style might appeal to a retiree in their early 60s who’s particularly sensitive to inflation risk and expects high healthcare expenses later. Institutions and endowments often think in terms of real (after-inflation) returns, and this example borrows a bit from that mindset.

Cash-heavy 30/50/20: For very risk-averse retirees

Some retirees simply cannot sleep if 60% of their money is in stocks, no matter what the math says. For them, a cash- and bond-heavy mix can still be considered a balanced retirement portfolio, even if long-term growth is more modest.

Here’s a conservative example of a balanced retirement portfolio for someone in their 70s:

• 30% stocks
  • 20% U.S. equity index fund
  • 10% international equity index fund
• 50% bonds
  • 30% short- to intermediate-term U.S. bond fund
  • 20% laddered individual Treasuries or CDs
• 20% cash, money market funds, or high-yield savings

This is one of the more conservative examples of balanced retirement portfolio examples, but it has advantages:

• A multi-year cash and short-term bucket can cover spending during stock bear markets
• Bond and CD ladders can be aligned with expected withdrawal needs
• Stocks still provide some growth and inflation offset, even if they’re not the main driver

The trade-off is that if inflation runs higher than expected for a long period, this portfolio may struggle to maintain purchasing power. That’s where Social Security cost-of-living adjustments and other income sources can matter a lot; the Social Security Administration explains those adjustments on its site (ssa.gov).

How to choose among these examples of balanced retirement portfolio examples

Looking across these real examples, a few patterns emerge:

• Higher stock allocations (like the 70/25/5 example) are better suited for longer horizons, late starters, and early retirees who can tolerate bigger swings.
• Mid-range mixes (50/50 or 60/40 style) tend to work well for people in their 50s and 60s who want a middle ground between growth and stability.
• Income- and safety-tilted portfolios (40/50/10 or 30/50/20) make more sense for retirees who already have enough and mostly want to preserve lifestyle.
• Target-date funds offer a one-stop example of a balanced retirement portfolio, but you still need to check that their glide path fits your comfort level.
• Inflation-aware portfolios add TIPS, REITs, or even a small commodity slice to defend purchasing power over decades.

The best examples of balanced retirement portfolio examples are the ones you can actually stick with when markets get ugly. That means:

• You understand what you own and why
• You know roughly how much your portfolio might drop in a bear market
• You have a plan for withdrawals that doesn’t force you to sell stocks at the worst time

For many people, working with a fiduciary financial planner or using reputable educational resources from organizations like FINRA (finra.org) or the SEC’s Investor.gov (investor.gov) can help tailor these examples to their specific situation.

FAQ: examples of balanced retirement portfolio examples

What is a simple example of a balanced retirement portfolio for someone in their 60s?
A straightforward example of a balanced retirement portfolio for a 60-something might be 50% in a total U.S. stock market index fund and 50% in a total U.S. bond market index fund. It’s not fancy, but it balances growth and stability and is easy to manage.

What are some of the best examples of balanced retirement portfolio examples for new retirees?
Many new retirees gravitate toward mixes like 40% stocks, 50% bonds, and 10% cash, or a 45/45/10 variation. These examples include enough stock exposure to keep up with inflation, a heavy bond allocation for income and stability, and a cash buffer for near-term spending.

Can a target-date fund be an example of a balanced retirement portfolio?
Yes. A target-date fund is a ready-made example of a balanced retirement portfolio that automatically shifts from aggressive to conservative as you approach its target year. Near retirement, many target-date funds hold a blend around half stocks and half bonds, with a small cash allocation.

Are international stocks necessary in a balanced retirement portfolio?
They’re not mandatory, but many examples of balanced retirement portfolio examples include at least some international exposure. The idea is to spread risk across global markets. That said, some investors prefer ultra-simple U.S.-only mixes and accept the trade-off.

How often should a balanced retirement portfolio be rebalanced?
Many investors rebalance once or twice a year, or when allocations drift more than 5–10 percentage points from their targets. The goal is to keep your chosen example of a balanced retirement portfolio aligned with your risk tolerance and spending needs, not to trade constantly.

Can a very conservative portfolio still be considered balanced?
Yes. A portfolio like 30% stocks, 50% bonds, and 20% cash is still a balanced retirement portfolio because it blends growth, income, and safety. It just sits on the conservative end of the spectrum among the many real examples of balanced retirement portfolio examples you can build.