How Much Should Retirees Keep in Stocks, Bonds and Cash?

What: Retirees should allocate **60%** of their portfolio to low-cost index funds or ETFs, **30%** to bonds, and **10%** to cash.
Why: This allocation helps balance risk and returns, ensuring a steady income stream in retirement.
Signal: A recent study suggests that retirees who follow this allocation tend to outperform those who stick to traditional 40% stocks and 60% bonds.
Target: Experts recommend reviewing and adjusting this allocation every **3-5 years** to ensure it remains aligned with changing market conditions and personal financial goals.
Risk: Retirees who hold too much cash may miss out on potential long-term growth, while those who hold too much in stocks may face significant losses during market downturns.