How to Build a Retirement Portfolio That Keeps Paying You

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Retirement Retirement Planning Share Share Close Mail Page URL https://money.com/recession-proof-retirement-portfolio/ Link copied! How to Build a Retirement Portfolio That Keeps Paying You By: Marc Guberti Marc Guberti Marc Guberti is a personal finance writer who hosts Breakthrough Success, a podcast where he teaches listeners how to grow their businesses and achieve personal transformations. Has also written: Could You Live on $100 a Week in Retirement? Here’s How to Try Your 2026 Social Security Playbook: 5 Moves to Make Before Filing Why Most Retirees Struggle Without This Simple Bucket Secret Your Retirement Plan May Be Missing One Crucial Ingredient Why the Biggest Risk to Your Retirement Isn't the Stock Market See full bio Published: Apr 3, 2026 5 min read Getty Images The stock market is unpredictable, but how investors choose to respond and adjust their portfolios in the face of market ups and downs can make a big difference for their long-term financial goals. Buying certain investments can help reduce volatility and minimize your losses. While younger investors should generally allocate their capital across growth-oriented investments like stocks to take advantage of the potential for high returns, that changes as you get older. People who are approaching retirement are usually recommended to prioritize at least some lower-risk assets, which — if diversified well — can help recession-proof your portfolio. Must ReadExperts are Bullish on Gold — Here's How to Get InWarren Buffett on Market Volatility — and 3 Ways You Can Take Advantage Strengthen your diversification A well-diversified portfolio consists of a variety of assets (such as stocks, bonds and cash) that offer you exposure to different aspects of the market, like technology, health care and industrials. This strategy helps ensure that a single stock doesn't dictate your entire net worth. Defensive funds like the Schwab U.S. Dividend Equity ETF and the Consumer Staples Select Sector SPDR Fund tend to hold relatively firm during market downturns, since they offer exposure to companies that provide essential goods and services. Putting some money into bonds can further diversify your portfolio while generating a stable cash flow. Bonds let you lock in an interest rate for an extended period of time. You can also store money in a high-yield savings account so you can access it right away. Vet bills can cost thousands — see what pet insurance might cost you Add layers of stability Many retirees have to sell stocks each year to fund their lifestyles and stay afloat, but you don’t want to have to sell stocks when the market is down. Investing in stocks and funds that pay dividends and interest can give you more stability and minimize how many shares you have to sell to keep up with your expenses. Dividend stocks, bonds and annuities all offer extra cash without having to sell any of your assets. But don’t forget that you’ll have to pay taxes on the interest from bonds and annuities, as well as dividend payouts. Still Paying for Subscriptions You Don’t Use?

See What You Could Cancel Keep cash on hand While young investors tend to take on risk in exchange for the potential of high returns, the older you get, the more cautious of an investing approach you may want to implement. That includes having a significant cash position in your portfolio that can cover multiple months of living expenses. Financial advisors tend to recommend everyone has at least enough money to cover six months of living expenses saved up in a liquid account, like a savings account. But as you near retirement, you may want to bump that figure up to give you a better financial cushion. Storing the money in a high-yield savings account allows your money to continue growing, though not as much as it would if it were invested in the stock market.

Grow Your Investing Confidence With Expert-Selected Stock Picks Stay the course Building a large portfolio and making it recession-proof takes many years. Many people with multimillion-dollar portfolios got there with consistent investing habits and financial discipline. It’s extremely rare to reach your retirement goals within one year of starting, but it becomes more feasible if you stretch your time horizon to 10 years or more. Investors who filter out the noise of stock market corrections, speculative investments and mainstream panic will have a better chance of constructing a portfolio that is built to last. If you stick to your financial plan, you’re more likely to end up with a portfolio that funds a comfortable retirement. Must ReadExperts are Bullish on Gold — Here's How to Get InWarren Buffett on Market Volatility — and 3 Ways You Can Take Advantage