Portfolio for Seniors: Build a Safe, Income‑Focused Investment Plan

If you’re over 60 and thinking about how to keep your money working for you, you probably want a portfolio that feels safe and keeps the cash flowing. The good news is you don’t need a fancy degree to pull it off – just a clear plan and a few simple rules.

Start with a Realistic Risk Profile

Most seniors can’t afford big swings in market value, so the first step is to figure out how much risk you can actually handle. A quick way to gauge this is to ask yourself: If the stock market dropped 20% tomorrow, would I still be able to cover my essential bills?

If the answer is “no,” aim for a higher proportion of stable assets like government bonds, high‑quality corporate bonds, and dividend‑paying stocks. A common rule of thumb is the "100 minus age" guideline – at 65, that would suggest about 35% in equities and 65% in bonds or cash equivalents. Adjust up or down based on your health, other income sources, and how comfortable you feel with market ups and downs.

Pick Income‑Generating Investments

Cash flow is king when you’re retired. Look for investments that pay regular dividends or interest. Good options include:

• High‑yield dividend ETFs that focus on blue‑chip companies with a track record of paying.
• Investment‑grade bond funds that provide monthly or quarterly interest.
• Real‑estate investment trusts (REITs) that distribute rental income.

These vehicles can give you a steady paycheck without having to sell assets during a market dip.

Watch the Fees

Even small fees can eat into your returns over time. Choose low‑cost index funds or ETFs whenever possible. A fund with a 0.10% expense ratio will leave you more money than one charging 1% – that difference adds up to thousands over a decade.

Also, be wary of “turn‑over” charges. If you’re constantly buying and selling, you’ll pay transaction costs that drag your portfolio down.

Make Tax‑Efficient Choices

Senior investors often have a mix of taxable and tax‑advantaged accounts. Pull the higher‑yield, taxable investments into an ISA or a pension wrapper where possible. This shields the income from income tax and keeps more of your money working.

Don’t forget to claim any available tax relief on pension contributions or capital gains exemptions. A quick check with a tax adviser can reveal hidden savings.

Build a Safety Net

Keep at least 6‑12 months of living expenses in an easily accessible cash account. This buffer stops you from needing to sell investments at a bad time if an emergency pops up.

Consider a short‑term bond fund for that cash – it earns a little more than a regular savings account but still stays liquid.

Regularly Review and Rebalance

Markets move, and so should your portfolio. Once a year, check whether your asset mix still matches your risk profile. If stocks have risen and now make up 45% of your holdings, you might sell a slice and buy more bonds to get back to your target allocation.

Rebalancing isn’t about chasing returns – it’s about keeping the plan you set for yourself intact.

Take Advantage of Expert Content

Our hub has articles that dive deeper into specific topics you’ll need: how pension risk works in 2025, ways to lower loan costs, and what to watch for with crypto scams. Reading those pieces can help you avoid common pitfalls and spot opportunities that match your goals.

In short, a senior portfolio should be simple, income‑focused, low‑cost, and tax‑smart. Stick to these basics, review annually, and you’ll give your money a solid chance to support the lifestyle you want in retirement.