5 Investment Options for Retirees (High-Return, Low-Risk)
You’ve worked hard, and now it’s time to enjoy the fruits of your labor. But for many individuals entering retirement, it creates new concerns—sustaining a lifestyle while living off the savings you’ve accumulated over time. Retirement marks a significant shift, one that exposes many challenges that, unless you’ve prepared for them, may come as a shock.
However, retirement doesn’t need to look that bleak. Retirees can minimize the likelihood of drastically changing their lifestyle or running out of money by managing and growing their post-retirement income through traditional options or alternative options like automated trading and crypto staking.
With every new phase of life comes challenges; however, having multiple sources of income will reduce or eliminate them. Let’s look at some of the most common investment options to reduce risk and grow your savings.
- Longer life expectancies mean retirees will need to have retirement savings that last over 20 years
- Investing in a diverse portfolio can help secure and grow your savings
- Create an investment strategy with a mix of low-risk and growth-oriented investments
- Automated trading tools like the BOTS app can provide retirees a hassle-free investment process
- Dividend stocks, annuities, crypto staking, certificates of deposit, and bonds are lower-risk investment options
Five investment options for retirees
With retirement potentially lasting for 30 years, individuals need to find a balance between creating a diverse portfolio of investments that are low and high-risk.
Finding that balance will ensure that retirees generate enough growth to withstand retirement while avoiding drastic drawdowns that will impact their quality of life. Here are five investment options for retirees to consider.
1. Try Automated Trading with BOTS
The BOTS app makes automated trading accessible to everyone - allowing you to grow your income without having to do the heavy lifting. There is a lot you can do with the BOTS app based on how much you’d like to invest and what is the risk profile you’re looking to adhere to. For example: You can invest in one of the staking bots you can find in the ‘Earn tab’ of our app.
Very briefly, crypto staking is the process of holding funds in a cryptocurrency wallet while you earn interest on your digital assets. The more you stake, the more you can earn. Staking your cryptocurrency requires you to lock them in your wallet for a specific period of time, earning interest on your investment.
Retirees have full access to their investments when using the BOTS app; it’s easy to use, and the app offers support to help with any financial or technical questions users may have. You can also opt for one of our premium services - and become a BOTS GOLD member. As a BOTS GOLD member, you will get a personalized approach and other exclusive perks. Curious about how this works? Check out the benefits of BOTS GOLD!
Naturally, there are always risks when it comes to investing; however, creating a diverse portfolio of assets can definitely help you reduce these, as you avoid putting all your eggs into one basket.
Recommended: What is diversification and why is it important?
Other investment options retirees can consider:
1. Dividend stocks
Your investment portfolio must offer a source of growth. High-quality dividend stocks can provide you with growth to beat inflation. However, not all dividend stocks are created equally. It’s crucial to invest in high-quality, mature companies that are well-positioned in their industries and have reasonable valuations. Do your research and focus on companies that have a history of paying consistently—it’s a must.
2. Certificates of deposit (CD)
A certificate of deposit (CD) is a type of savings account where you lock up your money for a specific period of time in exchange for a fixed interest return. When your savings are released, the bank gives back your original deposit plus the interest you’ve earned.
It’s a very low-risk investment option and can be a great option due to its low risk and stability. However, usually, the interest rates offered are low and don’t beat inflation. Retirees should have CDs in their portfolio but paired with a growth option. Remember, diversity is key!
Annuities haven’t had the best reputation due to the fine print and fees. However, they can provide a source of income for retirees, which should not be ignored. To look past their reputation, retirees should decide on the type of annuity that will meet their needs. While they can boost your portfolio, they should not make up your entire strategy.
Bonds are a popular option for retirement portfolios due to their low risk and reliable income. Bonds issued by high-quality companies can provide retirees with consistent income at low risk. Choosing bonds of varying maturities can help create a long-term investment strategy.
Final thoughts on investment options for retirees
Retiring should be an exciting time in life, a time where you can kick back and relax. But for that to happen, you need to have a strategy in place that will support you throughout your golden years.
Create a diverse investment portfolio of investment options like bonds, crypto staking, annuities, certificates of deposit, and dividend stocks to produce the income you need to live the life you want.
This blog is for educational purposes only. The information we offer does not constitute investment advice. Please always do your own research before investing. Any views expressed in this blog and by BOTS do not constitute a recommendation that any particular cryptocurrency (or cryptocurrency token/asset/index), portfolio of cryptocurrencies, transaction, or investment strategy is suitable for any specific person.