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8 Proven Investment Options to Safeguard and Grow Your Retirement Money

Retirement Investment Options

The current inflation issues, rising interest rates, and geopolitical volatility have a significant impact on the global economy. It’s prudent to refine your options for investments plans, safeguard your money and ensure financial freedom for retirement.

Your retirement investment options should consider your probable time horizon and risk appetite. Typically, understanding your financial standing and available options can help you welcome your retirement years with confidence.

Solid Investment Options for Your Retirement

Here are some tested retirement investment options to protect and multiply your money.

Real Estate

Real estate is among the typical long-term investment options that can impact retirement. Getting into real estate investment requires significant funds, and profits come after holding on to the asset for several years. However, investing in real estate can be a great strategy since you can use credit to cover investment costs and pay the money back before retirement.

While real estate is traditionally considered a passive investment, it may require a little active management when renting out. The potential risks associated with these investments can be quite high, but the returns are attractive. When you choose a great property, you can recover your investment many times over if you hold the property longer.

Government Bonds

Government bonds are loans from individuals to the government, allowing you to earn interest over an agreed period. Since bonds have steady payments, they’re considered a fixed-income security. Typically, government bonds are risk-free investments due to the low probability of default.

As a tradeoff for investment safety, you don’t get high returns as you would with riskier investments. However, government bond investments are best for conservative investors with a low-risk tolerance. When considered with other investments in a portfolio, they create balance since they often arise when stocks fall. This helps you stick to your investment strategy and resist panic selling.

Most importantly, the low volatility and stable income make government bonds common with investors entering retirement in a few years. This is because the investors don’t have a long investment horizon to withstand extreme market declines.

Regardless of your financial muscle, bonds are an efficient investment vehicle. For instance, if you don’t have sufficient funds to purchase independent bonds (which often cost about $1,000), some bond ETFs are available for $100 or lower.

Roth IRA

Roth IRAs are among the best retirement investment options you can have. It allows you to save and grow your money tax-free. In addition, your heirs can inherit the money tax-free, making it a great alternative to conventional IRAs. A Roth IRA is an effective investment vehicle for income earners to accumulate tax-free assets.

If you have a lower risk appetite, and you prefer a guaranteed income with minimal chances of loss, you can consider an IRA CD, which is basically a CD investment in an IRA. Ideally, it provides almost zero risks of losing your principal and payout after maturity. Regardless, inflation can affect your long-term income, so it’s essential to consider economic fluctuations.

Target Date Funds

Target-date funds are an excellent investment option for passive investors who don’t want to manage a portfolio actively. By design, the fund becomes conservative with time to protect your portfolio as your retirement date approaches. Ideally, your investment moves away from aggressive investment options like stocks to low-risk options as you approach the target date.

Mostly, target-date funds are available within 401(k) plans, but you can get them independently. Once you select a retirement year, the fund grows your money on autopilot. Target-date funds have similar risks to stocks and bonds since it’s a hybrid plan. When your target date is two or three decades away, your investment will have more stocks making it volatile at this stage. Eventually, the investments lean towards bonds and other less volatile investments to avoid fluctuations.

If the thought of outliving your retirement money alarms you, consider a target-date fund maturing about ten years into your retirement date. This means you’ll have more time to accumulate extra growth from high-yield investments.

Small-Cap Stocks

Small-cap stocks are essentially stocks from relatively small companies. The interest in these stocks is due to the high growth potential over time. In addition, they offer the opportunity to tap into emerging markets and create wealth. For instance, giant corporations like Amazon started as small-cap-stocks, allowing patient investors to reap massive returns.

While investing in stocks requires serious analysis, small-caps can be the perfect strategy to identify valuable stocks that most traditional investors miss. However, smaller companies are more volatile than established organizations, so you need to be risk-tolerant.

The entry point for small-cap stocks is relatively higher, especially if the company has a high potential to become an industry leader in the future. Consequently, the high price tag means the value may fall drastically during a slow economy.

Besides the dramatic price movements, small-cap firms are less established than huge conglomerates so financial hardship is eminent. This makes the investment more risky than medium and large companies.

Regardless, the ultimate reward for a successful small-cap is attractive since you can earn phenomenal annual returns for decades if you identify a valuable startup before other investors find it.

Growth Stocks

In the stock investment landscape, growth stocks offer a quick way to grow your funds. These stocks are characterized by higher investment growth and returns. While most growth stocks are linked to tech companies, other emerging markets with untapped demand can future growth stocks.

These companies often plough their profits into the business, meaning they rarely issue dividends until their growth curves slows. Buying lucrative growth stocks requires a thorough analysis and long-term monitoring. Investors ought to be risk-tolerant and willing to hold the assets for about five years.

Since you’ll pay more for the stock, you can lose significant value during a bear market or recession. Nevertheless, most growth stocks exhibit a stellar long-term performance. The biggest global companies like Amazon and Alphabet were once high-growth firms at some point. The rewards are limitless if you can buy and hold onto the right stocks.

Alternative Assets

Investments in this category have shown tremendous growth over the last few years. This has provided better opportunities for investors at all levels. Generally, alternative assets take long-term investments to levels beyond fixed-income assets. These assets may include private equity, precious metals, sine art, and cryptocurrencies. For instance, you can buy BTC and wait for better prices.

Even when you have invested in conventional options, it’s prudent to diversify your portfolio with alternative assets. Typically, alternative investments in assets within emerging markets can be lucrative in the long run. However, you may need a keen eye for silent trends with promising prospects in a couple of years.

Most alternative assets are perfect for investors looking for a way to diversify a portfolio. A diverse investment portfolio that moves away from traditional instruments is often immune to market downturns.

While online brokers facilitate access to specific alternative investments, some options are only available in private wealth management firms. Nevertheless, some EFTs keep tabs on assets like gold and oil, as well as mining companies.

Fixed Index Annuities

Fixed index annuities are a low-risk strategy to generate predictable cash flow in a highly volatile economy. Once you lock your funds at prevailing rates in an investment vehicle, the insurer is obligated to pay the agreed income regardless of how industry rates fluctuate.

Most importantly, FIAs protect investors against potential market losses. This helps maintain your principal and offers a guarantee of a consistent income throughout your retirement years. You can forecast the potential value of your annuity account based on historical data as a yardstick for possible growth trajectory. Nevertheless, this won’t give you a lifetime guarantee on the exact amount you can earn per month over the years.

Notably, fixed annuities in the current market are at a unique point with artificially high rates. This means the likelihood of insurance providers maintaining the high rates might be short-lived.

To elaborate, consider the period when mortgage rates experienced an artificial deflation during the global pandemic. If you secured your mortgage rates at that time, you’d be feeling quite fortunate. The opposite effect in this scenario could happen with the high-interest rate fixed index annuity.

While this prospect may be frightening, the short-term market aberrations can leverage your investment in the long run. However, you must ensure your insurance provider has a robust market reputation and a stellar credit rating.


Retirement planning is one of the most vital steps towards financial freedom and security. Typically, it involves analyzing and planning your retirement investments to ensure consistent returns to replace your regular income after your prime years.

It’s important to carefully choose the perfect investment vehicles that can sustain your family and ensure a debt-free retirement lifestyle. Becoming a profitable investor doesn’t need high-level financial acumen. However, you must understand your financial standing, risk appetite, and the appropriate long-term investment tools. As long as you have robust strategies to maintain your retirement, you can welcome your retirement years with confidence.

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Managing Editor
Deanna Ritchie is a managing editor at Due. She has a degree in English Literature. She has written 2000+ articles on getting out of debt and mastering your finances. She has edited over 60,000 articles in her life. She has a passion for helping writers inspire others through their words. Deanna has also been an editor at Entrepreneur Magazine and ReadWrite.

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