Building a Resilient Retirement Portfolio in 2025

Building
a Resilient Retirement Portfolio in 2025

Retirees and
those nearing retirement face a familiar dilemma: how to generate dependable
income without missing out when markets rally. After years of near-zero yields,
fixed-income returns have finally climbed to levels worth considering—and cash
isn’t quite as unproductive as it once was. Meanwhile, dividend stocks still
play a role, albeit in a landscape where yields can vary significantly.

Why
Today’s Environment Feels Different
In the past, parking savings in short-term Treasuries meant sacrificing yield;
now, even two-year notes and money-market funds offer returns that can offset
inflation more effectively. At the same time, 10-year Treasuries sit at levels
that make them attractive anchors in a retirement plan. This shift opens the
door to a more balanced approach—one that blends income, growth potential and
liquidity.

A
Flexible, Range-Based Framework
Rather than fixating on precise percentages, consider broad “guardrails” that
let you adjust with market swings and personal comfort:

• Stocks (40–60%)
  A core blend of broad-market funds and select dividend growers can offer
  growth plus modest income.
• Bonds & Inflation-Protected
  Notes (30–50%)
  Laddered maturities—short to intermediate—lock in today’s higher yields
  while preserving principal.
• Cash & Short-Duration Funds
  (10–15%)
  Keep a cushion for unexpected expenses and to seize opportunities when
  markets pull back.

These ranges
aren’t set in stone; they simply help you tilt toward stability when you need
it or lean into growth and income when you’re comfortable with a bit more
volatility.

Making
Income Work Without Overreaching
Dividend yields across the S&P 500 remain below their long-term average, so
it may pay to look beyond headline large-cap names. Specialized income funds
can boost yield, but they carry added risks—credit, liquidity or sector
concentration—that deserve close scrutiny. Meanwhile, inflation-protected
securities can hedge against rising prices without the same degree of
stock-market exposure.

The Role
of Your Cash “Dry Powder”
Holding a modest cash bucket isn’t just about safety; it’s also about agility.
Having 6–12 months of expenses in liquid funds means you won’t be forced to
sell in a downturn—plus, you’ll have the flexibility to add to positions when
valuations look attractive.

When to
Seek Help
Designing a portfolio that weathers volatility while delivering the income you
need is part art, part science. If you’re unsure where to fall within these
ranges—or how to balance competing priorities like income vs. growth—it can
help to talk through the trade-offs with a professional.

Before
making any shifts, consider:

1. Your personal timeline: How many years until you begin
   taking distributions?
2. Your income needs: Do you require steady cash
   flow, or can you tolerate occasional fluctuations?
3. Your comfort with market swings: Would you sleep better knowing
   more is in fixed income, or are you willing to ride out dips for higher
   long-term gains?

If you’d
like a second opinion on your current allocation—or help tailoring these
guardrails to your unique situation—give our office a call. We’re always happy
to review your numbers, discuss market conditions and help you build a
retirement plan that’s both resilient and aligned with your goals.

Kent Pendleton, AAMS®

Financial Advisor, RJFS

Pendle Hill Advisors LLC

14375 Liberty St, Ste 109 | Montgomery, TX 77356

T 936-297-8267

Kent.Pendleton@raymondjames.com | www.raymondjames.com/pendlehilladvisors

Securities offered through
Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services
are offered through Raymond James Financial Services Advisors, Inc. Pendle Hill
Advisors is not registered broker dealers and is independent of Raymond James
Financial Services.

Opinions expressed in the attached article are those of the
author/speaker and are not necessarily those of Raymond James. All opinions are
as of this date and are subject to change without notice. Investing involves
risk and you may incur a profit or loss regardless of strategy selected,
including diversification and asset allocation. Prior to making an investment
decision, please consult with your financial advisor about your individual
situation. Every investor’s situation is unique and you should consider your
investment goals, risk tolerance and time horizon before making any investment.
The forgoing is not a recommendation to buy or sell any individual security or
any combination of securities. The information contained in this report does
not purport to be a complete description of the securities, markets, or
developments referred to in this material.