How to build a retirement plan with ETFs
Create a retirement plan focused on long-term growth, risk control, and low fees. ETFs offer a simple way to own a diversified portfolio without needing to pick individual stocks.
Step 1: Set your retirement target
Start with how much annual retirement income you want and when you want to stop working. Work backward to estimate the portfolio size needed to support that cash flow.
Step 2: Choose a durable asset mix
Most long-term retirement portfolios combine broad global stocks with high-quality bonds. The exact split depends on your age, risk tolerance, and time horizon.
- Growth core: Global stock ETFs provide exposure to thousands of companies and capture long-term economic growth.
- Stability cushion: Government or high-grade bond ETFs help limit volatility and support withdrawals.
- Income options: A small allocation to dividend or real estate ETFs can smooth distributions without chasing yield.
Step 3: Keep contributions consistent
Use the free savings and compound tools to see what monthly contributions are required. A steady savings plan is more powerful than trying to time the market.
Step 4: Review your plan regularly
Check your portfolio and progress at least once a year. Rebalance back to your target mix and update your assumptions if your retirement goals change.