The safest places to put retirement money include high-yield savings accounts, CDs, US Treasury securities, and fixed annuities. These are low-risk options that prioritize capital preservation over high returns.
But no single option is completely risk-free. As retirees face shorter time horizons, protecting your savings from market crashes becomes just as important as steady income.
That’s why understanding your safe-money options and how to protect them in a downturn is essential for long-term peace of mind.
In this article, we’ll answer key questions and explore:
- Where is the best place to invest your retirement money?
- How do you protect your money if the stock market crashes?
- What is a good portfolio for a 65 year old?
- What are the factors to be considered while constructing a portfolio?
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (hello@adamfayed.com) or WhatsApp (+44-7393-450-837).
This includes if you are looking for a free expat portfolio review service to optimize your investments and identify growth prospects.
Some facts might change from the time of writing. Nothing written here is financial, legal, tax, or any kind of individual advice, nor is it a solicitation to invest or a recommendation of any specific product or service.
Where Is the Safest Place to Put Retirement Funds?
When it comes to preserving your nest egg, the safest place for retirement money typically involves low-risk, stable options that prioritize capital protection over high returns.
These are especially appealing to retirees who cannot afford to recover from large losses.
Here are seven of the most secure places to consider:
- High-Yield Savings Accounts
These accounts offer greater interest than traditional savings accounts while still being FDIC-insured. They’re ideal for emergency reserves and short-term needs. - Certificates of Deposit (CDs)
CDs provide a fixed interest rate over a set term and are FDIC-insured. They offer more return than savings accounts but require locking in your money for the duration. - US Treasury Securities
Backed by the federal government, these are among the most secure investments. They include options like Treasury bills, notes, and bonds. - Dividend-Paying Stocks
While they carry some market risk, established companies with a strong dividend history can offer a blend of income and moderate growth. - Treasury Inflation-Protected Securities (TIPS)
These government-issued bonds adjust for inflation, helping retirees maintain purchasing power over time. - Fixed Annuities
Sold by insurance companies, fixed annuities provide guaranteed payouts over a set period. They’re less liquid but ideal for predictable retirement income. - Stable Value Funds
Often found in 401(k) plans, these funds invest in low-volatility, short-term fixed-income securities. They aim to protect principal while offering modest returns.
These tools are popular among conservative investors focused on preserving capital, generating modest income, and ensuring peace of mind in retirement.
Where to Invest Retirement Money for Monthly Income
The ideal setup blends stability with consistent cash flow, helping you cover expenses without eroding your capital too quickly.
This depends on your risk tolerance, liquidity needs, and how long you expect your retirement to last.
Here are popular income-generating options:
- Immediate Annuities
These provide guaranteed monthly payments for life or a set period. While they offer stability, you give up access to the principal in exchange for predictable income. - Dividend-Paying Stocks
Companies with a strong dividend history can offer regular payouts and potential for moderate capital growth. However, stock market volatility makes this a higher-risk option. - Bond Ladders
Building a laddered portfolio of bonds with staggered maturities ensures regular interest payments and rolling principal returns, balancing income and capital preservation. - REITs and Rental Income
Real estate investment trusts (REITs) distribute rental income to shareholders, while direct property investment offers hands-on control. Both options can produce solid income, but they come with varying degrees of risk, liquidity issues, and management responsibility.
Choosing the right mix depends on how much income you need each month, how much flexibility you want, and your comfort with market fluctuations.
A well-structured income portfolio can reduce stress and keep your finances stable throughout retirement.
How Can I Protect My Retirement from the Stock Market Crash?
You can protect your retirement from a stock market crash by balancing your portfolio with lower-risk assets, diversifying across asset classes, and using strategies that reduce the need to sell during downturns.
Here are key strategies to consider:
- Asset Allocation and Diversification
Spreading your investments across asset classes (stocks, bonds, real estate, cash equivalents) reduces reliance on any single market. A diversified portfolio can soften the blow when equities fall. - Stop-Loss Triggers
Setting predetermined thresholds to sell risky assets can help minimize losses during sharp downturns. This tactic is more common among active investors but can be automated with modern portfolio tools. - Safe Withdrawal Strategies
Approaches like the 4% rule or bucket strategies can help retirees avoid drawing from depreciated assets in a downturn. This involves pulling income from cash reserves or stable assets while allowing growth-oriented assets time to recover. - Non-Correlated Assets
Assets Treasury Inflation-Protected Securities (TIPS) and short-duration bonds often behave differently from stocks during market stress. Including them can stabilize your portfolio during turbulent periods.
Best Retirement Portfolio for 65-Year-Olds
While there’s no one-size-fits-all approach, a thoughtful mix of investments can balance these needs.
Sample Asset Allocations
- 60/40 portfolio (60% stocks, 40% bonds): A classic conservative mix offering steady income with limited exposure to stock market volatility.
- 70/30 equities-fixed income split: Ideal for risk-averse retirees focused on preserving wealth while generating reliable income.
- Bucket strategy: Divide investments into short-term (cash, short-term bonds), medium-term (intermediate bonds, balanced funds), and long-term (equities, growth assets) buckets.
Factors That Affect Portfolio Allocation
- Life Expectancy: A longer retirement horizon requires a portion of growth assets to outpace inflation.
- Income Needs: Monthly cash flow requirements determine the allocation to income-generating assets like bonds or annuities.
- Risk Tolerance: More conservative investors may tilt heavily toward fixed income, while others may accept some equity exposure for long-term growth.
Importance of Rebalancing and Liquidity
Regularly rebalancing your portfolio ensures it stays aligned with your goals and risk profile.
Liquidity matters too. You’ll want easy access to funds without having to sell assets at a loss during downturns.
A diversified, carefully managed portfolio can help 65-year-olds maintain financial independence throughout retirement.
Conclusion
True retirement security isn’t just about choosing low-risk investments. It’s about structuring your finances to stay resilient over time.
That means designing a plan that adapts to evolving priorities, unexpected expenses, and longer life expectancies.
What’s often overlooked is how small adjustments like optimizing withdrawal strategies, coordinating tax efficiency, or timing annuity purchases, can make a lasting impact on your overall financial stability.
Professional advice can also be invaluable, not just to help avoid mistakes, but to uncover strategies you might overlook.
With a well-tailored approach, you can retire with confidence, clarity, and control.
Pained by financial indecision?
Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
