Retirees need a portfolio balancing income, growth, and capital preservation based on time horizons: cash equivalents for under 1 year, bonds for 1–5 years, and diversified stocks for 5+ years. A 60/40 stock-to-bond mix offers strong returns but should match risk tolerance. Fixed annuities provide guaranteed income, while CDs and Treasury bills offer short-term safety. Maintaining 20–30% stocks helps preserve purchasing power against inflation.