Using Safe Investments For Retirement

It’s true the word “safe” and “investments” don’t often go together. But for those who are saving for retirement, or for anyone who’s nearing retirement age, this lofty idea becomes increasingly more top of mind. 

Is there such a thing as safe investments? What about safe investments with high returns? Let’s dive in, as we explore the idea of safe investments for seniors that retirees or those thinking about this critical time in life may not already be in tune with. Because keeping that nest egg safe (and growing!) can be the difference between enjoying your hard-earned retirement, or not...

What Are Safe Investments?

First, let’s state the obvious. No investment comes without some form of risk. But there are safer strategies you can use so your money will be better protected. Safe investments allow you to continue earning on your principal, though we do want to point out: less risk often means less return.

When you’re committed to a safer investment strategy, you should understand the types of risk that’ll still be involved. You may lose principle (meaning your initial investment), you might lose purchase power (as a result of inflation, your money may not work as hard for you), and finally, you might lose the benefit of liquidity (some safe investments with good returns either tie up your money for a long time, or they have surrender charges you’d be subject to if you pull your money out early).

Examples of Safe Investments for Seniors

Fortunately, you have a number of options if you’re looking for safe investments for retirement income that’ll allow you to earn money, without risking it all. Some of the safest investments are simply parking your money in tried and true, FDIC-insured bank accounts. But those offer incredibly low returns, so you’ve got a few other opportunities, too.

Certificates of Deposit (CD)

Certificates of Deposit (CDs) are vehicles offered by a credit union or bank that essentially are just another type of savings account. You’ll earn a fixed interest rate, over a fixed length of time, and the rate is generally a bit higher than a typical savings account. Your money will be locked up for a term, usually anywhere between three months to five years.

Savings Accounts 

Savings accounts offer you the most liquidity - meaning you can access your funds at any time - but they earn a very low-interest rate. This might be a good place to keep your emergency fund money (three to six months of expenses is recommended). You won’t earn a lot, but your money will be safe and accessible in case you need it.

Money Market Funds 

It’s important to understand that a Money Market Fund (also referred to as a money market mutual fund) is not the same thing as a money market account you’d hold at a credit union or bank. Money Market Funds are relatively low-risk investments that are short-term debt instruments, paying out income in what’s known as dividends.


Annuities are insurance company products that you invest in over the long term. They might be a good option if you’re worried about living longer than your current income would provide for. In short, you invest a lump sum into an annuity, and then can gain back consistent payments from your money, starting immediately, or whenever you need the income.

Treasury Inflation-Protected Securities

Treasury Inflation-Protected Securities (TIPS) are bonds (Treasury securities that are issued by the government) that can give you security against inflation. Because TIPS are indexed to inflation, they can protect you from losing your purchase power. Anytime inflation rises, your investment will adjust in price automatically so it maintains its value.

Safe Investments With High Returns

Not all safe investments offer low yield returns. There are actually several out there that can offer you more on your money. Keep in mind, inflation always needs to be accounted for. So if you’re going for the absolute minimum risk, but only earning one to two percent, and inflation is at four percent,…well, you can see the problem there.

High Dividend Stocks

High Dividends Stocks are generally considered safe, and their rate of return is almost guaranteed. Of course, when you’re counting on earning dividends, there’s still the risk of losing some of your principle. But for some, that risk is largely offset by the possibility of substantial growth if stock prices rise.

Peer to Peer Lending

Peer to Peer Lending (P2P) is just what it sounds like. You lend money to a borrower and can count on recouping the loan plus interest. The caveat with P2P Lending is that the lending platform you use to broker the deal could always default. Loans are not secured when you go this route, an important point to note.

Crowdfunding Real Estate

Crowdfunding Real Estate is appealing to many retirement-age investors because it allows an opportunity to invest in large real estate opportunities without needing the typical capital that might be required if you were to invest on your own. It works by bringing together a larger group of investors who put their money together and invest in real estate development opportunities.

Investing With Connect Invest

Connect Invest can offer investments for retirees or for those approaching retirement age, where risk is rightly a concern. We offer low minimum investments with fixed income interest payments and fixed time frames. A huge perk to using Connect Invest is you see zero overhead - no account fees and 100 percent of the interest gained goes directly in your pocket. Check out some of our listings available right now.


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