3 Steps to Avoid Running Out of Money in Retirement

2. Continue Investing in Stocks

Even in retirement, the potential return from stocks over time is more likely to outpace inflation when compared to the long-term returns from cash or bonds, according to the Wells Fargo report.

Some experts say you should have 40 percent or more of your portfolio in stocks during retirement.

“My personal goal is to have enough in retirement savings that I can sustain my standard of living on a 3 percent sustainable withdrawal rate for a 30- to 40-year period,” said financial advisor Manisha Thakor, director of strategies for women at The BAM Alliance. She plans to do so by investing 60 percent of her portfolio in stock funds and 40 percent in individual bonds at the start of retirement and moving to a 50-50 split in later years.

“That’s a pretty lofty goal, but that’s what I’m aiming for,” she said.

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