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  • Writer's pictureJacob Vernon

Safe Investments for Seniors

Updated: Jun 22, 2023

Safe Investments for seniors

How to Protect Your Capital When You Are Approaching Retirement or Already In Retirement

As you approach retirement or are already in retirement, protecting your capital becomes increasingly important. This is because you are relying on your savings to provide for your living expenses for the rest of your life and do not want your hard-earned savings to be eroded by market volatility or unforeseen events. Therefore, it is crucial to understand the options available to protect your money and make it last.

Types of Safe Investments for Seniors

Short-Term Bonds and CDs

One option to consider is investing in low-risk assets such as short-term bonds and certificates of deposit (CDs). These options offer a fixed rate of return and are less volatile than stocks, making them a safer investment for retirees. However, keep in mind that low-risk investments also offer lower returns, which may not keep up with inflation.

Dividend-paying stocks

Retirees can invest in stocks that pay regular dividends. These stocks provide a steady stream of income and are less volatile than growth stocks. It's important to note that not all dividend-paying stocks are created equal. Some companies may not have a consistent track record of paying dividends, while others may have a high dividend yield but a declining stock price. When choosing dividend-paying stocks, investors should consider the company's financial health, dividend history, growth potential, and overall market conditions. It's important to research and consider your investment goals before making any decisions.

Uncorrelated Asset Types

Uncorrelated asset types are investments that do not move in tandem with the overall market. Investing in uncorrelated assets can help you achieve the return you need while also protecting you from the long protracted bear markets that come along every so often.

Balance Your Portfolio

It's important for retirees to balance their investment portfolio between income-producing assets and growth assets. While income-producing assets provide steady income, growth assets such as stocks provide long-term growth potential and can help retirees keep up with inflation.

Consider Tax Implications Associated with Investments

Another important consideration for retirees is the tax implications of their investments. Retirees should work with a tax advisor to develop a tax-efficient investment strategy that minimizes their tax liability.

Protecting Your Capital

Diversify Your Portfolio

Diversifying your investments is one of the most effective ways to protect your capital. This means spreading your money across different asset classes and market sectors to provide stability to your portfolio while also delivering a solid return. By diversifying, you can reduce risk exposure and potentially minimize losses during market downturns.

Reassess Your Risk

When nearing retirement, you may want to shift your focus from high-risk, high-reward investments to more conservative options that offer greater stability. This may mean accepting lower returns, but it also means you are less likely to experience significant losses.

Consider Getting Professional Help

Seeking professional financial advice can provide invaluable insights and guidance on protecting one's capital and maximizing retirement savings. A financial advisor can help create a personalized plan tailored to specific needs and goals.

Know the Tax Implications Associated with Withdrawing Funds

It is critical to have a plan in place for withdrawing funds from your retirement accounts. This means understanding the tax implications of different withdrawal strategies and developing a plan that maximizes your retirement income while minimizing taxes.


In conclusion, protecting your capital is crucial as you approach or enter retirement. By diversifying your portfolio, balancing your investments, and seeking professional advice, you can create a plan that maximizes your retirement income while minimizing taxes and risk exposure. Whether you choose low-risk assets, dividend-paying stocks, or uncorrelated asset types, it's important to research and consider your own investment goals before making any decisions. By taking proactive steps to protect your capital, you can enjoy a secure and comfortable retirement.

Are you ready to jump-start your retirement planning?

Vernon Management Group can help you make smart investments that will put you on the right track. Our experienced advisors are here to provide valuable personal advice to ensure that you make the most of your retirement and have the financial stability to enjoy your golden years. Take the first step to secure your future today!

Contact Vernon Management Group for your free initial consultation.

If you have any questions please contact Vernon Management Group at

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This is not tax advice. Please consult your tax advisor before making any tax decisions

*Please consult your tax advisor before you make decisions that involve tax laws

Past performance does not guarantee future return

Jacob Vernon, Investment Advisor Representative at Vernon Management Group

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