Smart Investing Strategies for 70-Year-Olds: Balancing Safety and Growth in 2025

Are you hitting that big 7-0 milestone and wondering what to do with your nest egg? Maybe you’re helping your parents figure out their financial strategy in retirement. Either way, you’ve landed in the right place. As someone who’s helped many seniors navigate their investment journeys, I can tell you that investing at 70 isn’t about stopping growth—it’s about smart growth with protection.

The investment landscape has changed dramatically in 2025, and retirees face unique challenges with market uncertainty geopolitical tensions and inflation concerns. But don’t worry! There are plenty of solid options that can help preserve your capital while still generating the income you need.

Why 70-Year-Olds Need to Keep Investing

Let’s face it—retirement could last 20+ years these days! According to research, the average American aged 65-74 has retirement savings of around $164,000, which honestly falls short of what experts recommend. With healthcare costs rising and inflation chomping away at purchasing power, your money needs to keep working even when you’ve stopped.

Here’s why investing remains crucial at 70:

• Longevity risk: You might outlive your savings without continued growth
• Inflation protection: Maintaining purchasing power over decades
• Income generation: Creating reliable streams of cash flow
• Legacy planning: Preserving wealth for heirs or charitable causes

The 70-Year-Old Investor’s Mindset

Before diving into specific investments, let’s get our heads in the right space. At 70, your investment approach should focus on:

1. Capital preservation first and foremost
2. Income generation as a close second
3. Moderate growth to combat inflation
4. Simplicity in your overall strategy
5. Liquidity for unexpected expenses

As William Connor from Sax Wealth Advisors puts it, “Managing risk is essentially a trade-off between the short-term risk of market declines and the longer-term risk of maintaining purchasing power” This perfectly captures the balancing act 70-year-olds face

7 Smart Investment Options for 70-Year-Olds in 2025

Let’s explore the best places for a 70-year-old to invest, balancing safety with reasonable returns:

1. High-Yield Savings Accounts

These accounts offer significantly better interest rates than traditional bank accounts while maintaining complete safety.

Why they’re great for 70-year-olds

• FDIC-insured up to $250,000
• Current rates around 4% annually
• Complete liquidity for emergency access
• Zero risk to principal

Chad Gammon, a certified financial planner, notes that these accounts are “ideal for emergency funds or short-term savings where you would need the money soon.” I usually recommend keeping 6-12 months of expenses here for peace of mind.

2. Certificates of Deposit (CDs)

CDs are time deposits that pay higher interest in exchange for leaving your money untouched for a fixed period.

Key benefits:

• Fixed, guaranteed returns
• FDIC-insured up to $250,000
• Higher rates than regular savings accounts
• Terms ranging from a few months to several years

Jake Falcon of Falcon Wealth Advisors points out that “retirees can choose the term length that best suits their needs,” but cautions about “penalties to access funds earlier than the maturity day.”

Pro tip: Consider a CD ladder strategy where you stagger maturity dates to provide periodic access to funds while maximizing interest rates.

3. U.S. Treasury Securities

Backed by the full faith and credit of the U.S. government, Treasury securities are considered among the safest investments available.

Options include:

• Treasury bills (maturities under 1 year)
• Treasury notes (1-10 years)
• Treasury bonds (10-30 years)
• Treasury Inflation-Protected Securities (TIPS)

TIPS deserve special attention for 70-year-olds. These securities adjust their principal value based on changes in the Consumer Price Index, offering built-in inflation protection. This makes them “an excellent choice for retirees looking to preserve their purchasing power over time,” according to Falcon.

4. Dividend-Paying Stocks

While stocks are generally riskier than the options above, high-quality dividend stocks can provide both income and moderate growth potential.

Why consider them:

• Regular income through dividends
• Potential for dividend growth over time
• Less volatility than growth stocks
• Partial inflation hedge

Connor notes that “dividend stocks tend to be less volatile than non-dividend-paying stocks” and “dividend growth is one of the few ways to generate a stream of income that will increase over time.”

I typically suggest limiting dividend stocks to 20-30% of a 70-year-old’s portfolio, focusing on well-established companies with long histories of paying and raising dividends.

5. Fixed Annuities

Annuities can be polarizing, but fixed annuities offer predictable income that can complement Social Security and other retirement income.

Benefits for 70-year-olds:

• Guaranteed income for life or a specified period
• Protection from market volatility
• Potentially higher returns than CDs or bonds
• Peace of mind from predictable payments

Gammon recommends “checking an annuity’s fees and understanding that you’ll have limited access to your principal” but notes they “can be a helpful tool covering basic living expenses in addition to Social Security or a pension.”

6. Stable Value Funds

Often available in retirement accounts, stable value funds invest in high-quality, short-to-intermediate-term fixed income securities wrapped with insurance contracts.

Why they’re worth considering:

• Principal preservation with moderate yields
• Higher returns than money market funds
• Lower volatility than bond funds
• Protection against interest rate fluctuations

Neal Gordon, founder of Gordon Wealth Planning, believes these “don’t get nearly enough attention” and “can be a great fit for someone who’s looking for safety but wants better returns than your standard savings account.”

7. Money Market Accounts

These accounts function like savings accounts but typically offer slightly higher interest rates in exchange for maintaining a higher balance.

Key advantages:

• FDIC-insured up to $250,000
• Higher interest than regular checking accounts
• Immediate access to funds for emergencies
• Check-writing privileges with some accounts

Money market accounts provide a good middle ground between checking accounts (for everyday expenses) and higher-yielding investments for longer-term goals.

Creating a Balanced Portfolio at 70

So how do you put all these pieces together? Here’s what I typically recommend to my 70-year-old clients:

Investment Type          Allocation Range-------------------------------------Safe/Cash Equivalents    25-30%Fixed Income             40-50%  Dividend Stocks          15-25%Alternative Investments  0-10%

This allocation provides safety while still offering some growth potential. Your exact mix should depend on:

• Your total savings
• Other income sources (Social Security, pensions)
• Health status and family longevity
• Legacy goals
• Risk tolerance

Common Mistakes 70-Year-Olds Make With Investments

In my years of working with retirees, I’ve seen these mistakes pop up repeatedly:

1. Getting too conservative: While safety is important, being 100% in cash virtually guarantees losing purchasing power to inflation.

2. Chasing yield: Reaching for higher returns often means taking on inappropriate risk for your age.

3. Ignoring inflation: Even modest inflation of 3% can reduce purchasing power by 50% over 25 years.

4. Failing to plan for healthcare costs: These expenses can derail even the most careful investment strategy.

5. Not adjusting investments with age: What works at 70 may not be appropriate at 80 or 85.

When to Seek Professional Help

While many 70-year-olds can manage their investments independently (especially with tools like Retirable, which costs less than $200 for basic estate planning), certain situations warrant professional guidance:

• Complex estate planning needs
• Managing Required Minimum Distributions (RMDs)
• Tax optimization strategies
• Cognitive changes affecting financial decision-making
• Family wealth transfer considerations

Final Thoughts: Investing with Confidence at 70

The best investment strategy for a 70-year-old balances safety, income, and modest growth while accounting for your unique circumstances. Remember these key principles:

• Protect what you’ve built through diversification and appropriate asset allocation
• Generate reliable income from multiple sources
• Keep some growth elements to fight inflation
• Maintain liquidity for unexpected expenses
• Simplify your financial life where possible

As we wrap up, I’d like to remind you that investing at 70 isn’t about hitting home runs—it’s about hitting consistent singles and doubles while avoiding strikeouts. With the right mix of safe investments like Treasury securities, annuities, and high-yield savings, combined with modest exposure to dividend stocks, you can create a portfolio that serves you well throughout your retirement years.

What investment approach has worked best for you or your loved ones in retirement? I’d love to hear your experiences in the comments below!