The best low-risk investments for retirement

Retirement is the time to protect what you’ve worked so hard to build. While growth was the goal in your working years, now you need investments that provide stability and consistent income. The good news? There are plenty of low-risk investments that can help safeguard your wealth while still offering returns.

At Guerra Wealth Advisors, we specialize in creating investment strategies that balance safety and income. Let’s explore the best low-risk investments for retirees and how they fit into a well-rounded financial plan.

1. High-Yield Savings Accounts & CDs

When it comes to keeping your money safe, high-yield savings accounts and certificates of deposit (CDs) are unbeatable. These options provide:

• FDIC insurance, protecting up to $250,000 per depositor
• Guaranteed returns, with interest rates locked in for CDs
• Liquidity, especially with savings accounts for easy withdrawals

CDs are great if you don’t need immediate access to your funds, as they offer higher interest rates for longer terms. A mix of short- and long-term CDs, known as a CD ladder, can help maximize your returns while keeping cash accessible.

Want to know how CDs fit into your retirement plan? Let’s chat about your options.

2. U.S. Treasury Securities

For retirees looking for ultra-safe investments, U.S. Treasury securities are a top choice. They include:

• Treasury Bills (T-Bills): Short-term (up to 1 year) and highly liquid

• Treasury Notes (T-Notes): Medium-term (2–10 years) with slightly higher returns

• Treasury Bonds (T-Bonds): Long-term (20+ years) with stable, predictable interest payments

These government-backed investments are considered some of the safest in the world. If you want steady, low-risk income in retirement, Treasuries can be an excellent addition to your portfolio.

We can help you determine the right mix of Treasury securities for your needs. Let’s discuss your strategy!

3. Fixed Annuities

If you want guaranteed income for life, fixed annuities can provide it. These insurance products offer:

• Predictable payments—monthly, quarterly, or annually
• Principal protection, meaning your initial investment is secure
• Tax-deferred growth, so your money works harder for you

Annuities can be complex, and not all are created equal. That’s why working with a fiduciary advisor (like us!) is crucial. We’ll help you find the right annuity that fits your financial goals.

Curious if an annuity is right for you? Let’s talk!

4. Municipal Bonds

If you want tax-free income, municipal bonds (or “munis”) might be the perfect fit. Issued by state and local governments, these bonds offer:

• Low risk, especially for bonds from financially strong municipalities

• Tax advantages, with most muni bond interest being exempt from federal taxes

• Steady income, since bonds pay out interest regularly

For retirees in higher tax brackets, tax-exempt income can make a big difference. Let’s review whether municipal bonds fit into your financial plan.

5. Dividend-Paying Stocks

While stocks aren’t always considered “low-risk,” blue-chip, dividend-paying stocks can be a relatively safe way to earn consistent income.

Look for companies with:

• A long history of stable dividends
• Strong balance sheets and solid earnings
• Defensive industries like healthcare or utilities

A dividend reinvestment strategy can also help grow your wealth over time while keeping risk in check.

Want a customized dividend portfolio? We’re here to help.

6. Bond Funds & ETFs

If you prefer diversification, bond funds and ETFs (exchange-traded funds) can provide exposure to different bonds while reducing risk. Options include:

• Short-term bond funds: Lower risk, with less sensitivity to interest rate changes

• Investment-grade corporate bond funds: Higher yields than Treasuries with solid credit ratings

• TIPS (Treasury Inflation-Protected Securities) funds: Protect your purchasing power against inflation

Bond funds can be a great way to generate retirement income while keeping your portfolio balanced. Let’s review the best bond options for you!

7. Real Estate Investment Trusts (REITs)

Real estate can be an excellent investment, but direct ownership isn’t for everyone. REITs allow you to invest in real estate without the hassles of managing properties.

• Steady income: REITs are required to pay out at least 90% of their income as dividends

• Diversification: Exposure to commercial properties, healthcare facilities, and more

• Liquidity: Unlike physical real estate, you can buy and sell REIT shares anytime

Want to know which REITs align with your risk tolerance? Let’s create a plan that works for you.

Choosing the Right Low-Risk Investments for Your Retirement

Every retiree’s financial situation is unique. The right low-risk investments depend on factors like:

• Your income needs

• Tax situation

• Risk tolerance

• Market conditions

A balanced approach is often best—combining fixed income, safe growth, and liquidity to ensure financial security.

At Guerra Wealth Advisors, we specialize in helping retirees create investment strategies tailored to their goals. Let’s connect and build your retirement plan today!