How to Build an Investment Portfolio at Age 75

SmartAsset Team

Sat, Mar 15, 2025, 9:43 AM 6 min read

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At 75, investors typically focus on preserving wealth, managing withdrawals and covering healthcare costs rather than seeking high-risk growth. Stability becomes a priority to help maintain a reliable income while minimizing exposure to market fluctuations. A financial advisor can help you build an investment portfolio at age 75 that balances stability and income for a comfortable retirement.

Retirees often shift their focus from growing wealth to preserving it and generating sustainable income. However, even with that as the primary focus, completely avoiding stocks and riskier assets may not be the best strategy, as longevity and inflation still needs to be accounted for. Instead, choosing an asset allocation that allows you to strike the right balance between risk and potential growth is key to creating a well-rounded portfolio.

Your risk profile can depend on personal financial circumstances, health status and investment goals. It is shaped by both your comfort level with risk and your financial ability to handle it. Risk tolerance reflects your willingness to take risks, while risk capacity measures how much risk you can realistically afford.

While younger investors typically have a higher risk tolerance and capacity due to their long investment horizon, a 75-year-old investor will likely want to adopt a more conservative but still diversified approach.

Here are examples of two possible approaches an investor at age 75 might take, depending on their level of risk:

• Investors who depend on their portfolio for living expenses will typically want to prioritize low-risk investments such as bonds, annuities and dividend-paying stocks.

• Those with additional income sources-such as Social Security, pensions or rental income-may have a higher risk capacity and might be able to afford moderate exposure to stocks and alternative investments.

Healthcare costs, long-term care needs and estate planning should also be factored into risk assessment and asset allocation strategies, which we'll dive into below.

A well-diversified portfolio at age 75 should include a mix of income-generating and conservative growth assets to help maintain financial security minimizing the impact of inflation. A sample asset allocation might include:

• 40% to 50% in bonds and fixed-income investments. Government and corporate bonds, Treasury Inflation-Protected Securities (TIPS) and bond funds can provide stability and predictable income.

• 30% to 40% in dividend-paying and blue-chip stocks. Large-cap, well-established companies that offer consistent dividends can provide both income and moderate capital appreciation.

• 10% to 20% in alternative investments and cash equivalents. Real estate investment trusts (REITs), annuities, money market funds and certificates of deposit (CDs) can help diversify risk and provide liquidity.