Retirement Portfolio Calculator: Will Your Money Last?
Your retirement portfolio must support savings through the accumulation years and provide assets for spending once withdrawals begin.
- Market performance
- Investment costs
- Timing of withdrawals can all affect how long retirement savings last.
So, you need to carefully construct your portfolio, as it is super important and plays a central role in managing both growth and retirement income.
Retirement Portfolio Calculator
Project your portfolio’s growth to retirement, see your asset allocation broken down by class, and check your estimated retirement income against your goal — using current institutional return forecasts.
How Much Should You Have In Your 401(k) At 65?
See average and median 401(k) balances around age 65, compare your savings with age-based benchmarks and estimate how long your retirement money could last.
Check Your 401(k) Benchmark
How to Use the Retirement Portfolio Calculator
Asset Allocation & Age-Based Portfolios
Asset allocation is the mix of stocks, bonds, and other investments in your portfolio.
| Age | Typical Mix | Main Goal | Simple Portfolio Examples | Account / Tax Focus |
|---|---|---|---|---|
| 20s–30s | 80–90% stocks 10–20% bonds |
Long-term growth |
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| 40s–50s | 60–80% stocks 20–40% bonds |
Growth + lower risk |
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| 60s | 50–60% stocks 30–40% bonds 5–10% cash |
Growth + stability |
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| 70s+ | 30–50% stocks 40–60% bonds 5–10% cash |
Income + stability |
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| Key idea | More stocks = more growth potential + more volatility | More bonds/cash = more stability |
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Use a mix of taxable, traditional and Roth accounts |
In general, portfolios tend to shift from more stocks toward bonds and cash as retirement approaches, but what’s right for you depends on the mix of your
- Time horizon
- Financial goals, and
- Risk tolerance, not age alone.
What Investments to Hold in a Retirement Portfolio
These are the concrete investments within asset classes.
- Stocks (Equities): Shares in companies. They offer high growth potential and dividends.
- Bonds: Debt issued by governments/corporations. Typical bond funds pay fixed interest. A mix of intermediate-term bonds is common; short-term bond laddering provides safety.
- TIPS: Government bonds that adjust principal with CPI inflation. I would recommend you use TIPS as part of the bond sleeve to protect purchasing power.
- Real Estate (REITs): Real Estate Investment Trusts track property markets. A small REIT allocation can diversify stock risk.
- Cash/Cash Equivalents: Money-market funds, high-yield savings. Maintain a cash buffer of at least 1 year of expenses plus immediate access to cover short-term needs without selling risk assets.
- Target-Date Funds: Give you access to thousands of U.S. and international stocks and bonds and automatically shift toward bonds as you age.
- ETFs and Index Funds: Low-cost, broadly diversified funds for all asset classes.
- Annuities: Insurance products that convert principal into an income stream.
Tax-Advantaged Accounts & Tax Planning
U.S. retirement accounts offer tax benefits.
Major types:
Always contribute at least enough to your 401(k) to get the full employer match, essentially free money. Maximize your annual contributions where possible to build more retirement savings.
- Roth vs. Traditional: If you expect higher tax rates in retirement or want tax-free withdrawals, favor Roth contributions.
- Asset Location: In tax-deferred accounts, it’s often best to hold high-yield or interest-paying assets because all distributions will be taxed as ordinary income anyway.
- Saver’s Credit: Lower-income savers may qualify for a tax credit on retirement contributions.
Retirement Withdrawal Strategies
| Strategy | How It Works | Example | Main Trade-Off |
|---|---|---|---|
| 4% Rule | Start with about 4% of your portfolio, then adjust the dollar amount for inflation. | $1M → $40,000 in Year 1 | Simple, but spending stays relatively rigid |
| Conservative Rate | Start with a lower withdrawal rate, such as 3%–3.5%. | $1M → $30,000–$35,000 | More safety margin, but less income |
| Fixed Percentage | Withdraw the same percentage of your current balance each year. | 4% of $1M = $40K; 4% of $800K = $32K | Portfolio lasts longer, but income varies |
| Guardrails | Increase spending after strong returns and reduce it after major declines. | Spend less after a large market drop | More flexibility, but requires monitoring |
| RMD-Based | Base withdrawals on your portfolio balance and remaining life expectancy. | Withdrawal amount changes as your balance changes | Simple formula, but income can fluctuate |
| Dynamic Spending | Adjust withdrawals based on market results and portfolio value. | Spend more in strong years, less in weak years | Can support higher spending, but income is less predictable |
As you can see, fixed withdrawals are easier to budget, while flexible strategies can adjust spending when markets or portfolio values change.
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