Where Should An 80-Year-Old Invest? Smart Money Strategies for Your Golden Years

There is a big difference between investing in your 40s or 50s and investing when you are 80 years old. Many older people waste their hard-earned cash by either taking too many risks or being too cautious, leaving their money behind as prices rise. You’ve come to the right place if you want to know where an 80-year-old should put their money.

At this point in your life, your investment priorities have changed naturally. You probably care less about fast growth and more about protecting what you’ve built and making sure you have steady income. There are many smart and safe ways to invest your money that will help protect your nest egg and still give you a good return.

In this guide, I’ll share the best investment strategies for octogenarians based on the latest financial advice and market conditions as of 2025. Let’s dive in!

Understanding Your Investment Goals at 80+

Let’s take a moment to talk about what you want to do with your money at this point in your life before you start making investments.

• Income generation: Creating reliable streams of cash to supplement Social Security and pensions
• Capital preservation: Protecting your principal from significant losses
• Risk mitigation: Avoiding market volatility that could derail your financial security
• Legacy planning: Possibly setting aside funds for heirs or charitable causes

Which of these goals is most important to you will depend on your unique circumstances. Some 80-year-olds are mostly worried about paying their bills, while others are more interested in leaving their money to the next generation.

How Much Risk Should an 80-Year-Old Take?

According to investment experts your stock allocation should generally decrease as you age. For someone in their 80s a portfolio with around 20-30% in stocks and 70-80% in bonds and cash equivalents is often recommended.

That said, every situation is unique. If you have substantial assets beyond what you’ll need for your lifetime, you might consider a slightly more aggressive approach for the portion intended for heirs. On the flip side, if you’re concerned about outliving your money, focusing on safe, income-producing investments becomes even more critical.

Top 7 Safe Investment Options for 80-Year-Olds

1. High-Yield Savings Accounts

Why they’re great for 80-year-olds: These accounts offer complete safety through FDIC insurance (up to $250,000) while providing better interest rates than traditional savings accounts.

“High-yield savings accounts offer a safe place for cash while earning a higher interest rate than traditional savings accounts,” says Chad Gammon, a certified financial planner at Custom Fit Financial. “These accounts are still FDIC-insured up to $250,000 and are ideal for emergency funds or short-term savings where you would need the money soon.”

While the returns won’t make you rich, they’re significantly better than keeping money in a checking account. Plus, you maintain complete liquidity—your money is available whenever you need it.

2. Certificates of Deposit (CDs)

Why they’re great for 80-year-olds: CDs offer guaranteed returns and are FDIC-insured, making them virtually risk-free.

If you’re looking for slightly better returns than a high-yield savings account and don’t need immediate access to some of your money, CDs are worth considering. They lock in a fixed interest rate for a specific term, typically ranging from a few months to several years.

“Retirees can choose the term length that best suits their needs, and the interest rates are typically higher than regular savings accounts,” explains Jake Falcon, founder of Falcon Wealth Advisors. “The downside is that funds are locked in until the maturity date, so it’s important to plan accordingly.”

A smart strategy is to create a “CD ladder” by dividing your investment across multiple CDs with different maturity dates. This gives you periodic access to your money while still benefiting from the higher rates of longer-term CDs.

3. Treasury Securities

Why they’re great for 80-year-olds: They’re backed by the full faith and credit of the U.S. government, making them extremely safe.

Treasury securities come in several forms:

• Treasury bills: Short-term securities that mature in a year or less
• Treasury notes: Medium-term securities that mature in 2-10 years
• Treasury bonds: Long-term securities that mature in 20-30 years
• Treasury Inflation-Protected Securities (TIPS): Securities that adjust for inflation

For an 80-year-old investor, Treasury bills and short to medium-term Treasury notes are usually most appropriate due to their shorter time horizons.

“These securities come in various maturities, allowing retirees to tailor their investment strategy to their specific needs,” says Falcon. “There is risk, as the underlying value may fluctuate up or down based on interest rates and other factors.”

4. Dividend-Paying Stocks

Why they’re great for 80-year-olds: They provide regular income plus the potential for growth, helping to combat inflation.

While stocks generally carry more risk than the options mentioned above, certain dividend-paying stocks from well-established companies can be appropriate for a portion of an 80-year-old’s portfolio.

“Dividend stocks tend to be less volatile than non-dividend-paying stocks,” notes William Connor, a partner at Sax Wealth Advisors. “The consistent stream of income from dividends can cushion the impact of a bear market.”

Focus on companies with:

• Long histories of paying and increasing dividends
• Strong balance sheets
• Businesses in stable industries

Consider limiting your stock exposure to no more than 20-30% of your total portfolio to manage risk.

5. Fixed Annuities

Why they’re great for 80-year-olds: They provide guaranteed income streams that can last for a specific period or for life.

Fixed annuities are insurance products that can provide reliable income in retirement. In exchange for a lump sum payment, an insurance company promises to pay you a fixed amount periodically for a predetermined time or for life.

“Fixed annuities are insurance contracts that provide income for a specified period or for life,” explains Gammon. “They are popular if you want predictable income.”

However, annuities can be complex and come with fees, so it’s essential to understand all the terms before investing.

“Check an annuity’s fees and understand that you’ll have limited access to your principal,” Gammon advises. “But they can be a helpful tool covering basic living expenses in addition to Social Security or a pension.”

6. Money Market Accounts

Why they’re great for 80-year-olds: They offer better interest rates than regular savings accounts while maintaining high liquidity.

Money market accounts are similar to high-yield savings accounts but may offer slightly higher interest rates in exchange for maintaining a minimum balance. They’re FDIC-insured up to $250,000 and typically allow limited check-writing privileges.

Like high-yield savings accounts, money market accounts provide easy access to your funds while earning interest, making them ideal for emergency funds or short-term expenses.

7. Stable Value Funds

Why they’re great for 80-year-olds: They offer better returns than cash with minimal risk to principal.

Stable value funds are a low-risk investment option typically found in employer-sponsored retirement plans like 401(k)s. They invest in high-quality, short-term fixed-income securities and include insurance contracts that help maintain a stable value.

“These don’t get nearly enough attention,” says Neal Gordon, founder and CEO at Gordon Wealth Planning. “They can be a great fit for someone who’s looking for safety but wants better returns than your standard savings account. They’re designed to protect principal and deliver steady returns, which can be really reassuring.”

Additional Investment Tips for 80-Year-Olds

1. Beware of Scams and Fraud

Unfortunately, seniors are often targeted by financial scams. Be especially wary of:

• Investment opportunities that promise unusually high returns
• Pressure to make quick decisions
• Unsolicited investment offers
• Anyone claiming to be a “deposit broker” without proper credentials

Always research any investment opportunity thoroughly and consult with trusted family members or financial advisors before making decisions.

2. Consider Your Health and Longevity

Your health status and family history of longevity should influence your investment strategy. If longevity runs in your family or you’re in excellent health, you might need to plan for a longer time horizon, potentially justifying a slightly more growth-oriented approach.

3. Plan for Potential Long-Term Care Expenses

Long-term care costs can quickly deplete savings. Consider setting aside funds specifically for potential healthcare needs or explore long-term care insurance options if you haven’t already.

4. Review Your Beneficiary Designations

Ensure your beneficiary designations on all accounts are up-to-date to avoid complications for your heirs.

5. Seek Professional Guidance

At this stage of life, working with a financial advisor who specializes in retirement planning can be invaluable. They can help you create a personalized investment strategy that aligns with your specific needs and goals.

Recommended Asset Allocation for 80-Year-Olds

Here’s a general framework for how an 80-year-old might allocate their investments:

• 50-60%: Fixed-income investments (bonds, CDs, Treasury securities)
• 20-30%: Cash and cash equivalents (high-yield savings, money market accounts)
• 10-20%: Conservative stocks (primarily dividend-paying blue-chip companies)
• 0-10%: Alternative investments (annuities, etc.)

Remember that this is just a starting point—your ideal allocation should be tailored to your specific circumstances.

Final Thoughts

Investing in your 80s is all about finding the right balance between safety and growth. While preserving capital is important, having at least some growth-oriented investments can help ensure your money lasts throughout your lifetime and keeps pace with inflation.

The most important thing is to align your investment strategy with your personal needs, goals, and risk tolerance. By focusing on safe, income-generating investments while maintaining a small allocation to growth assets, you can create a portfolio that provides both security and sustainability throughout your golden years.

Have you found success with any particular investment strategies in your 80s? I’d love to hear about your experiences in the comments below!