As more investors shun 60/40 the role of advisors becomes more essential, study reveals

While the decline of the 60/40 portfolio mix has been talked about for some time, most investors now no longer believe that a traditional mix of stocks and bonds is sufficient for long-term success, according to a new report.

Two-thirds of respondents to Charles Schwab’s 2025 Modern Wealth Survey said that “successful investing today requires looking beyond stocks and bonds,” and 42% agreed that “the classic 60/40 portfolio is outdated.”

The findings show that investors are increasingly open to expanding their portfolios with new asset classes and strategies with more than half of investors (52%) saying that investing today demands more short-term risk than in the past, although 63% acknowledge a greater need for long-term discipline.

Nearly seven in ten (68%) say they now have more patience for investments to grow than when they first started.

Trading activity continues to rise with 89% of investors making at least one trade per year and nearly half trading monthly or quarterly. The most common reasons include easier access to trading platforms, greater confidence and experience, and increased available funds.

Investor interest in nontraditional assets continues to expand with 41% of respondents now viewing cryptocurrency as a good investment including nearly a quarter saying they “have always thought it was a good investment.” Among current crypto investors, 65% expect to increase their allocation over the next two decades.

Other alternatives are drawing similar attention with 45% expressing interest in private equity, hedge funds, or venture capital, and one third intrigued by event contracts.

Only 39% of investors keep all assets in a single portfolio. Nearly half maintain one main portfolio and additional smaller ones tied to specific goals. Among those using multiple portfolios, 54% say it’s to achieve different objectives, 38% to test new strategies, and 30% to try new investment products.

This evolution points to a growing interest in goal-based investing, where portfolio design aligns directly with personal milestones rather than a single universal allocation.

“According to our survey - and based on what we see with our own clients - investors are more engaged than ever, actively trading and exploring new strategies in pursuit of their broader financial goals,” says Jonathan Craig, Head of Retail Investing at Charles Schwab. “New asset types are adding to this momentum by drawing a new generation of investors and creating more ways to diversify, a principle that has always been central to long-term investing success.”

Advice is essential for most

As investors diversify into new asset classes and multiple portfolios, more are turning to professional guidance. Overall, 57% of respondents agree that today’s portfolios require more expert advice including 54% of Gen Z, 57% of Millennials, 55% of Gen X, and 59% of Boomers.

“Given how portfolios are further diversifying and often adding some layers of complexity, it’s natural for today’s investors to seek more professional guidance,” says Rob Williams, Head of Wealth Management Research at the Schwab Center for Financial Research. “With more choices and strategies than ever - from crypto to alternatives to more frequent trading - advice can help investors navigate the range of possibilities, make informed decisions and shape portfolios that reflect their goals and appetite for risk.”