Does Your Portfolio Really Fit Your Retirement Plan? Here’s How to Know

When I talk to people about retirement planning, one theme always comes up: most investors have no idea whether their portfolios actually fit their goals. They know the markets go up and down. They know they should be saving. But when it comes to understanding whether their investments truly support the future they want, there’s a huge gap and the data proves it. The average retirement account balance in the U.S. is around $112,000, but that number is wildly misleading because a quarter of people never check their portfolios at all. Only about 42% ever rebalance. If we want real retirement security, we have to start by asking a simple question: Does my portfolio fit my life, my goals, and my timeline?

I always begin with savings rates because they set the foundation for everything else. If you’re in your thirties, the goal is to have at least one times your income saved. By your forties, three times. By your sixties, eight times. And if those numbers feel impossible, you’re not alone. Even with auto-enrollment pushing people into plans, the average savings rate sits at 8.9%—better than before, but still not high enough for most households. The solution isn’t perfection; it’s progress. Increase your savings gradually, take full advantage of employer matches, and remind yourself that time in the market is your biggest ally.

From there, asset allocation becomes the driver of long-term growth. Younger investors should lean heavily toward stocks because they have decades to ride out volatility. In your twenties, it’s normal for your stock allocation to be 90% or more. In your thirties, staying high in equities still makes sense before gradually reducing exposure as retirement approaches. I often see people holding far too much cash—even tens of thousands of dollars sitting idle—which quietly destroys purchasing power. A globally diversified portfolio with something like 60% U.S. stocks and 40% international can provide balance while still driving growth.

Bonds play a more important role as you age. Think of them as the stabilizing force in your retirement plan. They provide income, reduce volatility, and protect you when markets get choppy. Yet I regularly see people in their sixties holding less than 10% bonds, which exposes them to more risk than they realize. Interest rates absolutely affect bond prices, but that doesn’t make bonds “bad.” It just means you need to understand how they work and why they’re still useful as part of a larger strategy.

For young investors, the advice is simple: just start. Even if you’re saving 1% or 2%, the habit matters more than the amount. Increase it every year, avoid hoarding cash, and educate yourself on how different asset classes work. A little knowledge now can add six figures, or more, to your portfolio later.

As the years go on, your planning needs evolve. Someone in their forties should aim for roughly three times their salary saved; in their fifties, five times; in their sixties, eight times; and by seventy, ten times. If you’re behind, don’t panic adjust. Increase contributions, especially once you’re eligible for catch-up limits. Diversify your tax strategy by looking at Roth options. Run a full portfolio checkup to see whether your investments match your income needs, life expectancy, and risk tolerance.

One mistake I see often is trying to time the market. It almost always leads to missed opportunities. Selling because the market is “too high” ignores the fact that the market can stay high for years. Instead, keep a portion of your portfolio in safe assets that can cover five to ten years of withdrawals in retirement. That buffer allows you to leave equity positions untouched during downturns, giving them time to recover.

The biggest takeaway? Retirement planning isn’t a one-time event. It’s an ongoing process of reassessing, adjusting, and staying aligned with your personal goals. Save early, save consistently, build a diversified portfolio, and rebalance regularly. When you treat retirement as a long-term journey rather than a distant finish line, it becomes much easier to make confident decisions that support the life you want now and decades from now.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.