I’m 76 years old and have $73,000 in my investment account, which hasn’t increased once in two years. Should we give up the 50/50 strategy?

My investments are split 50% stocks and 50% bonds. Stocks seem to have made money, but bonds have lost money. Despite investing $100 a month, my investments have stayed at about $73,000 for the past two years.

At this age, is the old adage still true that it’s best to split your investments 50/50 between stocks and bonds? I think I would have made more money over the years if I had held more stocks. Is there a better way to diversify your investments in today’s market conditions?

see: I want to retire at age 55 in a country with free health care. My spouse is scheduled to receive Social Security benefits and I have $160,000. Are we crazy?

Do you have any questions about your super? Please email us at HelpMeRetire@marketwatch.com.

Dear readers,

In fact, at your age, the old adage probably goes something like this: more I invest in bonds rather than stocks because the former tend to be more conservative. That said, this isn’t the right move for everyone and your investments should be allocated to best fit your interests and goals.

You’re not alone, as many people are upset with the way their investment portfolios have performed over the past few years. However, it is best not to act based on past performance, especially when investing in the short term. So, don’t change your portfolio just for that reason.

However, it is a good idea to check your asset allocation. Learn more about stocks and bonds. What exactly are you investing in? Then get back to financial planning. If you don’t have one yet, start right away.

Consider your assets and liabilities, review how much you spend (or need to spend) each year and whether that amount is appropriate for your income. Consider how these costs may change in the future for both short-term and long-term purposes.

Try to figure out how much money you need for the rest of your life. This is a difficult task and not a number you can pinpoint, but try the following rule of thumb: Multiply your estimated monthly expenses by 12, then multiply that number by 25. This is a very broad calculation. Keep in mind that there are many factors that affect that number, including inflation, interest rates, emergencies, medical expenses, and more.

Risk Tolerance and Risk Capacity

Even if you choose the riskier option, you may not be able to do so. and Achieve your goals realistically or reasonably. The two terms you need to know here are risk tolerance and risk acceptance. The former is how much risk you can take, like emotionally dealing with a declining retirement account balance after a bad year. The latter refers to how much risk your finances can take without straying from your financial needs and goals.

Being able to save a portion of your income is fantastic. If you don’t want to shake up your current investment portfolio, open a separate investment account to which you contribute a portion of your excess income each month and opt for a higher allocation to stocks.

Make sure that this account, or any other endeavor you are considering, does not interfere with your plans to keep you financially solvent and comfortable in your golden years. Your retirement assets are not something you want to gamble with.

Consult with a qualified and trusted financial planner who can guide you through specific investment options and create a more customized asset allocation. Maybe a 50/50 strategy is right for you, but the sooner you decide on it, the better it is for your future and your finances.

See also: I am 62 years old, single, have a mountain of debt, and want to start a business. Am I in a position to take financial risks?

Reader: Do you have any suggestions for this reader? Add it in the comments below.

Do you have any questions about your super? Please send an email to: HelpMeRetire@marketwatch.com