How to Build a Portfolio for a Long Retirement

April 22, 2024

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Investing for a long retirement presents unique challenges, including longer life expectancies and the impact of inflation, which can increase the risk of outliving retirement savings.

With individuals often experiencing retirements that extend 25 years or more, planning becomes an important part of ensuring financial security.

The blog will show you how to prepare for a financially stable retirement, looking at stocks and alternative assets as potential solutions.

Why should I be thinking about investing for retirement now?

In the past, many Americans have aimed to save $1 million to comfortably retire.

As life expectancies grow, statistics show that for a couple both aged 65, the likelihood of at least one partner living to 80 is over 90%, with a 50% chance one will reach 90.

Interior, a smiling elderly woman sits in bed whilst sipping tea, for “How to Build a Portfolio for a Long Retirement”

Because of growing life expectancy, a study by GoBankingRates reveals that $1 million may no longer suffice for 25 years of retirement, underlining the difficulty in relying solely on cash savings amidst rising inflation.

A potential solution is to incorporate stocks and alternative assets, like small business finance notes, into your portfolio.

Click here to discover different ways to guard against inflation.

Why should I consider stocks in my retirement planning?

  1. Rowe Price’s analysis shows that for long retirement planning, stocks can be useful because they offer returns that can exceed the growing cost of living.

Accredited investors and family offices can also use the adaptability of stocks to develop investment strategies that align more closely with their clients specific risk tolerances and retirement goals.

Apple Inc exemplifies the potential impact of stock investments. An initial investment of $10,000 in Apple 20 years ago would now be worth over $2,000,000, assuming dividends were reinvested.
This growth illustrates why stocks can be useful, as they can provide an attractive opportunity to enhance the value of a retirement portfolio over time.

How can alternative assets help retirement investing?

Alternative assets can complement stocks by offering both long-term returns and portfolio diversification, which can reduce vulnerability to market shifts. This is because alternative assets don’t follow the same ups and downs as traditional markets.

Alternative assets can also bring investors higher returns, as they expose investors to unique growth opportunities.

This access to a wider range of investments can lead to higher returns due to their potential for significant appreciation outside of conventional market trends.

Supervest’s SBF notes exemplify how alternative investments can support long-term retirement goals. These notes have met 100% of their target returns, offering a potential solution for those looking to enhance their retirement portfolio with alternatives.

To gain a deeper understanding of alternative assets, click here.

What can I do now?

Diversifying your retirement portfolio with stocks and alternative assets can help you to effectively plan for a long retirement.

You can get personalized advice by signing up for a free, no-obligation investment account today.

Click here to receive professional insights that help you to invest for long retirement.

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