02 Oct Should I change my portfolio’s allocation?

Q. I was honestly expecting my portfolio to turn lower after Trump’s election, and I’m honestly surprised it’s done well. I’m 60 and with an 80/20 breakdown, mostly in mutual funds and ETFs. I’m not sure when I will retire, but I hope sooner rather than later. Does it make sense to change my allocation because of my age — or is there more money to be made?
— Investor

A. There are many factors that go into how you should allocate your portfolio.

Let’s get into it.

People often allow their political opinions to shape their expectations for stock market performance, said Deva Panambur, a fee-only planner with Sarsi, LLC in West New York.

But, he said, historically — no matter which party got the reins to the White House — stocks have appreciated over time.

“While the performance of stocks is better under certain administrations, missing out the gains earned when the White House and/or the Congress were controlled by a specific party led to lower overall gains over time,” he said. “It is best not to let politics influence your investment decisions and stay invested through all administrations.”

Portfolio allocations should be based on your ability and willingness to tolerate volatility — risk — which together comprise your “risk profile,” he said.

Ability to take risk is based on factors such as income, assets, liabilities, dependents and time horizon. And, Panambur said, willingness to take risk is a personality trait that differs for each person.

Specific to your question, it is possible for markets to continue grinding higher but prudent risk management would dictate that you manage your asset allocation based on the above-mentioned factors, he said.

“You don’t have to change your allocation based only on age if, for example, you don’t expect to withdraw from the portfolio anytime soon because you have other sources of retirement income such as a pension and you are comfortable with portfolio volatility,” Panambur said. “If you are planning to retire soon and withdraw from the portfolio then you will want to adjust the allocation accordingly.”

“You will also want to ensure that your portfolio is diversified and resilient so that it can perform well over the long term,” he said.

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This story was originally published in October 2025.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.