A comfortable home and a healthy nest egg are crucial for ensuring financial security in retirement. With $143,000 in cash, it's important to avoid letting it sit idle, as inflation and missed opportunities could erode its value.
What should you do with that money? As a retiree, caution is vital for your investments. However, being too conservative could hinder growth since $143,000 isn’t an extensive amount to sustain you long-term. Luckily, owning a home ensures that you have an asset to fall back on if needed.
Is it Time to Start Investing?
The U.S. faces leadership shifts and rising international tensions, leading to market volatility. This uncertain environment makes investing seem risky. However, avoiding investments entirely presents its own dangers — your money could lose value over time.
A balanced approach combines higher-return equities with safer assets like bonds. A common guideline suggests subtracting your age from 110 to find your equity allocation. At 66 years old, this means you could explore investing around 44% in stocks and 56% in bonds. This strategy aims to minimize losses during downturns, especially considering you might have some cash reserves. Preserving income is critical for retirees.
Explore Gold as a Safe Investment
For those looking to preserve wealth and fund retirement, investing in gold may be worth considering. Historically, gold has been a reliable hedge against inflation and market volatility. Many investors gravitate toward “safe haven” assets during economic or geopolitical instability to safeguard their wealth. Recently, the price of gold reached an impressive peak of $3,500 as of April 2025.
Opening a Gold IRA could be a practical addition to your long-term strategy. This option combines the tax advantages of an IRA with the recession-resistant qualities of gold. Companies like Thor Metals assist in this process. A Gold IRA enables you to diversify with a time-tested asset known for maintaining or increasing its value during market downturns. Unlike stocks or bonds, gold is not tied to any government or economy, making it a strong hedge against inflation, currency devaluation, and global instability. A Gold IRA could be a smart long-term addition to your investment portfolio.
Investing Smartly Through ETFs
Once you have your ideal asset allocation figured out, decide what specific investments to make. A solid starting point is an exchange-traded fund (ETF) that tracks the S&P 500. These funds provide extensive coverage across 500 of the largest U.S. companies and have historically averaged around 10% annual returns. These ETFs are low-cost, passive, and offer instant diversification, making them ideal for new investors.
Consider starting with a smaller amount and gradually increasing your investment. A helpful tool available is the Acorns app, which automates investment. By rounding up your everyday purchases to the nearest dollar, it invests the surplus into a diversified portfolio of ETFs. With Acorns, every little transaction — from your morning coffee to your grocery shopping — contributes to building your retirement savings.
Ensure Financial Security with High-Yield Savings Accounts
Maintaining a financial cushion is essential. Setting aside a few months’ living expenses in a high-yield savings account allows you to grow your cash reserves and provides quick access to funds when necessary.
High-yield savings accounts often offer interest rates significantly higher — 10 to 12 times more — than the national average for traditional savings accounts, which is about 0.41%. Shockingly, over 82% of Americans miss out on these higher rates, according to CNBC Select. Thus, shopping around and comparing rates is crucial.
Investigate options available, like the Moneywise list of the Best High-Yield Savings Accounts of 2025. This resource directs you to top accounts that can earn you significantly more than traditional offerings.
Consider Certificates of Deposit for Safe Growth
Certificates of Deposit (CDs) present another reliable method for growing your savings, as they generally offer fixed interest rates for specific periods. These low-risk savings options can yield over ten times the return you would obtain from a standard savings account.
Utilize SavingsAccounts.com to compare and find top certificate of deposit rates from various banks across the nation. Their comprehensive database regularly updates rates, providing personalized recommendations aligned with your risk preferences and investment goals.
Remember, your investment strategy should align with your long-term financial goals while carefully balancing risk and return. Retirement is a significant phase of life that requires thoughtful planning and execution to thrive financially.