Thu May 29 2025, by Tyler Gardner

How I Would Invest a Million Bucks in Retirement

I'm Tyler, a former financial advisor and portfolio manager. If any of this is helpful, check out this week's episode of my podcast, Your Money Guide on the Side, as I'll go over this strategy in far greater detail.

1. $300,000 in Intermediate Bonds and Municipal Bonds

I'd allocate $300,000 in a mix of intermediate bond ETFs and high-quality municipal bonds. Why? Because you still want income and stability, but with a little more yield than ultra-safe short-term ladders.

2. $250,000 in Dividend-Paying Stocks

I would invest $250,000 in a globally diverse mix of dividend-paying stocks, including U.S. blue chips, international developed markets, and perhaps some utilities. This provides growing income and some inflation protection.

3. $200,000 in Total Market and S&P Funds

This amount would go into $200,000 in total market and S&P funds, serving as your long-term growth engine. You’ll ride the ups and downs, but over time, it compounds beautifully.

4. $100,000 in Sector ETFs

Next, I would put $100,000 into sector ETFs, such as healthcare and infrastructure. These sectors have low correlation to tech, stable long-term demand, and add a layer of diversification without being speculative.

5. $100,000 in Cash or Cash Equivalents

Having $100,000 in cash or cash equivalents provides a one-year buffer, which is always key. It allows you to breathe during pullbacks and cover life surprises.

6. $50,000 in TIPS

Finally, I would invest $50,000 in TIPS (Treasury Inflation-Protected Securities). While not the star of the show, they serve as a great inflation hedge and stability anchor.

Conclusion

This portfolio's goal is to grow your wealth while also generating around 3% income per year. If any of this is helpful, check out this week's episode of the podcast by clicking the link in my bio, and I'll go over this in even greater detail.

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