It is widely acknowledged that it generally becomes more difficult to invest once you are in retirement, because your life goals and risk appetite typically change. 

Whereas earlier in life you may be inclined to pursue growth in order to build your capital, retirement often entails a preference for capital preservation, steady cash flow, and modest growth to offset inflation. What more, fees typically become a bigger focal point as their compounding effect can eat into returns and affect one retirement lifestyle.

All this underscores the point of careful investment selection throughout the various stages of your life, including regularly assessing your portfolio and whether it still meets your needs. With that in mind, below We'll set out to cover three asset groups that may form a part of your portfolio over your investment journey.

Funding Retirement

According to the Association of Superannuation Funds Australia (ASFA), as of 2022, a single person needs an annual income of $47,383 per annum to enjoy a comfortable retirement'. This number is only set to increase given elevated inflation and its impact on cost of living expenses.

Furthermore, the group argues that the lump sum needed at retirement to support a comfortable lifestyle is $545,000 for a single person, or $640,000 for a couple, assuming they already own their own home outright, and are eligible for a partial Aged Pension.

Many investors may feel as though these hurdles are particularly high, or even out of reach. 

However, given the challenging conditions in the market, and the broader macroeconomic issues that have unfolded of late, investors may wish to consider what assets they have exposure to in their portfolio, ensuring these match your needs and circumstances.  

You can read more here about portfolio diversification.

1. Growth and Income Stocks

While investors may tend to narrow their focus in the stock market on either growth or income, the market offers an abundance of opportunities that may cater to each objective, and there are also many opportunities that provide exposure to both themes.Learn more about share investing for growth and dividend income.

The important thing is that investors are aware of the risks associated with their investments, including whether a particular stock might be appropriate given your investment horizon and time until retirement. 

For example, a younger investor may have greater risk tolerance in pursuit of higher returns, knowing they have time on their side. They may be inclined to invest in more speculative stocks, or companies with high growth prospects that could take years for their shares to follow suit. 

In contrast, these types of investments are likely to be in conflict with the needs of an investor in retirement. Instead, retirees may prefer stocks with robust cash flow and earnings, offering high yield at a fair' valuation.

However, for retirees, this leads to another consideration. It is crucial that investors assess whether a company yield is sustainable. In some cases, it could be evidence of a value trap', where fundamental changes to a business, or that are working against a business, have artificially inflated its yield. 

A more simple and cost-effective option might be ETFs that focus on yield, like the Vanguard Australian Shares High Yield ETF (ASX: VHY), or the S&P 500 High Yield Low Volatility ETF (ASX: ZYUS).See how to identify shares paying sustainable dividends.

It is worth noting that certain industries may also align with investment strategies. Take, for example, the banks. This cohort has historically paid higher dividends owing to their stable business operations. 

Similarly, infrastructure operators spanning telecoms, utilities, and industrials also share some characteristics as high-yield stocks since they tend to be less susceptible to economic cycles. Exposure to international assets in these industries, through ETFs, may offer further diversification.

2. Fixed Income

With interest rates now on the rise, a number of investors are looking at more stable options to generate steady and secure cash flow. 

While this category tends to favour retirees seeking regular cash flow to fund their retirement, younger investors have also realised the benefits of a balanced portfolio that provides exposure to fixed income assets.

Exchange-traded bonds are one option with which investors can gain access to Treasury Bonds, which pay fixed coupons across the life of the investment.

Learn about exchange-traded bonds.

The most notable of fixed income assets is that they provide investors with some sense of stability in terms of returns, which generally means they are more predictable during the economic cycle. 

Furthermore, income from these assets may also function in a counterweight' role when there is a downturn across the stock market, offsetting losses incurred by more risk-sensitive assets.

Study the ins and outs of investing in fixed income here.

3. Alternative Investments

There are a growing number of investments that align with different strategies, beliefs, and objectives. Thanks to what is typically their less-than-stable nature, these investments tend to be geared towards investors with a high risk tolerance, as opposed to those already with retirement portfolios.

One example of this is cryptocurrency.

However, there are some alternative investments that seek to provide more defensive qualities, including lower volatility and diversification, making them more appealing to investors approaching, or already in retirement. Precious metals like gold have often been put in this category, owing to their safe haven' status.

Over the long term, gold has performed through a range of market conditions, and it generally shares a low correlation with the performance of other assets. 

In addition, the tangible' nature of this asset is one that often finds support among investors who appreciate that gold has a broad appeal as both an investment, and from a consumer perspective.

Fortunately, diversifying into gold is easy for investors, with a range of ETFs available on the ASX and US markets, including those that are physically backed by gold, like the ETFS Physical Gold ETF (ASX: GOLD).Find out more about how to invest in gold here.