Disclosure: Clicking on links may earn me commission from Joining Augusta Precious Metals, at no additional cost to you. Thanks for reading!

Explore typical investment portfolios across different age groups to gain insight into common financial strategies.

What's the Average Investment Portfolio by Age?

Disclaimer: This website and its content are for informational purposes only and is not financial advice.

Investment Portfolio in Your 20s and 30s

For those in their 20s and 30s, time is a significant advantage. Retirement may seem far off, but this long time horizon allows for a more aggressive approach to your average investment portfolio. With many years to recover from potential market downturns, younger investors can typically afford to take on more risk in pursuit of higher long-term returns.

A common approach for this age group is to have a substantial allocation to stocks, sometimes as high as 80% to 100% of the investment portfolio. The remaining portion might be in bonds or cash. This strategy aims to maximize the power of compound interest, where your earnings reinvest and generate even more earnings over time.

Establishing consistent saving habits early on is crucial, and utilizing employer-sponsored retirement plans like a 401(k) or an Individual Retirement Account (IRA) can be a smart move.

The average investment portfolio for someone in their 20s might see a higher percentage of cash than other working-age groups, but the emphasis should still be on growth-oriented assets for the long run.

Investment Portfolio in Your 40s and 50s

As investors move into their 40s and 50s, their financial landscape often becomes more complex. There might be mortgages, children's education expenses, and a closer eye on retirement goals.

While growth remains important, a shift towards a more balanced average investment portfolio typically begins to take place. The time horizon is still significant, but there's less time to recover from major market losses compared to earlier decades.

In these mid-career years, a common asset allocation might see stocks ranging from 60% to 70% of the investment portfolio, with the bond allocation increasing to 30% to 40%. This adjustment aims to maintain growth while introducing more stability.

It's a period where maximizing contributions to retirement accounts becomes even more vital, especially as income may be at its peak. Reevaluating and adjusting the investment portfolio regularly to align with evolving financial goals and risk tolerance is a wise practice during this stage.

Investment Portfolio in Your 60s and Beyond

Approaching and entering retirement, the focus of the average investment portfolio shifts considerably. The primary goals typically become capital preservation and generating a reliable income stream to support living expenses. With a shorter time horizon for investing and a greater need for stability, the investment portfolio generally becomes more conservative.

For individuals in their 60s and beyond, a typical allocation might involve a higher proportion of bonds, perhaps 50% to 60%, with stocks making up 40% to 50%. Some might even lean more heavily into bonds or cash, especially if they have a low risk tolerance or are relying heavily on their investment portfolio for daily expenses.

Income-generating investments, such as dividend-paying stocks and various types of bonds, become more prominent. Understanding required minimum distributions (RMDs) from retirement accounts and strategizing withdrawals to minimize taxes are also key considerations during this phase of managing your average investment portfolio

Updated May 24th, 2025

Share this:

Key Takeaways

While age provides a helpful guideline for understanding the average investment portfolio, it's crucial to remember that these are just general frameworks.

Your individual circumstances, including your personal risk tolerance, specific financial goals, and other sources of income, play an equally important role in shaping your ideal investment portfolio.

Some individuals may be comfortable with more risk at any age, while others might prefer a more conservative approach regardless of their years until retirement.

Factors like having a pension, significant real estate holdings, or specific legacy goals can also influence how you structure your investment portfolio. The most effective strategy is one that is tailored to your unique situation, allowing you to feel confident and secure in your financial future.

Regularly reviewing your investment portfolio with a professional financial advisor can help ensure it remains aligned with your changing needs and aspirations throughout your life.

Subscribe to Newsletter

Get updates on new Gold IRA posts, market news, and more.

By Jordan McCaleb, Investment Researcher