Where Should a 75-Year-Old Invest? Safe Options That Still Grow Your Money

As we reach our golden years, especially at age 75, investing takes on a whole new meaning. Gone are the days of aggressive growth strategies and high-risk investments. Now, it’s all about finding that sweet spot between protecting what you’ve worked so hard for while still making your money work for you.

I’ve talked with countless seniors who worry about the same thing: “How do I keep my money safe but still earn enough to beat inflation?” It’s a valid concern, especially with today’s economic uncertainties.

Let’s dive into the best investment options for 75-year-olds that balance safety and reasonable returns.

The Balancing Act: Safety vs. Growth at 75

When you’re 75, your investment priorities shift dramatically. You need to focus on:

1. Preserving your capital – You’ve built your nest egg over decades; now it’s time to protect it
2. Generating reliable income – Creating steady cash flow to supplement Social Security and pensions
3. Maintaining modest growth – Keeping pace with inflation so your money doesn’t lose purchasing power
4. Minimizing tax impacts – Strategic withdrawals that don’t unnecessarily increase your tax burden

Most financial advisors recommend a more conservative approach at this age, but that doesn’t mean putting everything in cash or low-yield investments. You still need some growth to sustain you potentially for another 15-20 years.

Recommended Asset Allocation for 75-Year-Olds

A well-balanced portfolio at 75 typically looks something like this

This allocation provides a good mix of safety income, and growth potential while limiting downside risk. But remember, your personal situation might call for adjustments.

7 Best Investment Options for 75-Year-Olds

1. High-Yield Savings Accounts

These accounts offer significantly better interest rates than traditional bank accounts while maintaining FDIC insurance up to $250,000.

Pros:

• Completely safe with FDIC insurance
• No market risk
• Easily accessible funds
• Currently offering competitive rates

Cons

• Returns may not beat inflation long-term
• Interest rates can fluctuate

“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.

2. Certificates of Deposit (CDs)

CDs lock up your money for a specific time period in exchange for a guaranteed return.

Pros:

• Predictable, guaranteed returns
• FDIC-insured up to $250,000
• Higher rates than regular savings accounts
• Various term options (3 months to 5+ years)

Cons:

• Limited liquidity during term
• Penalties for early withdrawal
• May not keep pace with inflation

“Retirees can choose the term length that best suits their needs, but there may be penalties to access funds earlier than the maturity date. So there is liquidity risk,” warns Jake Falcon, founder of Falcon Wealth Advisors.

3. U.S. Treasury Securities

These government-backed securities include Treasury bills, notes, and bonds with varying maturities.

Pros:

• Backed by the full faith and credit of the U.S. government
• Considered among the safest investments
• Exempt from state and local taxes
• Various maturity options

Cons:

• Lower yields compared to corporate bonds
• Value fluctuates with interest rate changes

Treasurys’ lower return is the trade-off for receiving an extra measure of safety, making them ideal for conservative investors.

4. Treasury Inflation-Protected Securities (TIPS)

TIPS are designed specifically to protect against inflation by adjusting their principal value with the Consumer Price Index.

Pros:

• Direct hedge against inflation
• Principal adjustment plus interest payments
• Government-backed safety

Cons:

• Complex tax structure
• Can underperform in low inflation environments
• Creates “phantom income” that’s taxed annually

TIPS can be particularly valuable for retirees concerned about inflation eroding their purchasing power over time.

5. Dividend-Paying Stocks

Blue-chip companies with long histories of paying dividends can provide both income and growth potential.

Pros:

• Provides regular income
• Potential for dividend growth over time
• Some capital appreciation possibility
• Generally less volatile than growth stocks

Cons:

• Still carries market risk
• Dividends can be cut during economic downturns

“Dividend stocks tend to be less volatile than non-dividend-paying stocks,” notes William Connor, a partner at Sax Wealth Advisors. “Dividend growth is one of the few ways to generate a stream of income that will increase over time.”

6. Fixed Annuities

These insurance products provide guaranteed income for a specific period or for life.

Pros:

• Guaranteed income stream
• Principal protection
• Tax-deferred growth until withdrawal
• Peace of mind from steady payments

Cons:

• Limited liquidity
• Potentially high fees
• May not adjust well for inflation

“Fixed annuities are insurance contracts that provide income for a specified period or for life,” explains Gammon. “They can be a helpful tool covering basic living expenses in addition to Social Security or a pension.”

7. Stable Value Funds

These conservative investment options are typically found in 401(k) plans and designed to preserve capital while providing steady returns.

Pros:

• Principal preservation
• Higher returns than money market funds
• Low volatility

Cons:

• Limited availability outside retirement accounts
• May have withdrawal restrictions
• Lower growth potential than bond funds

“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.”

Withdrawal Strategies Are Just as Important

Once you’re in your mid-70s, how you withdraw money becomes just as crucial as where you invest it. At 75, you’re subject to Required Minimum Distributions (RMDs) from traditional retirement accounts.

Some key withdrawal strategy considerations:

• Tax efficiency – Drawing from taxable accounts first can reduce overall tax burden
• Market timing – Consider taking smaller withdrawals during market downturns
• Income layering – Creating multiple income streams with different tax treatments
• RMD planning – Strategically planning withdrawals to minimize tax impact

A good financial advisor can help develop a personalized withdrawal strategy that maximizes your income while preserving your assets.

What About Risk Tolerance?

Your personal risk tolerance still matters at 75, but it’s usually more limited than in your younger years. However, there are different approaches:

• Conservative approach: For those who depend heavily on their portfolio for living expenses, focusing primarily on bonds, annuities and dividend stocks makes sense.

• Moderate approach: If you have additional income sources like pensions or rental income, you might handle a bit more stock exposure (40-45%) for better long-term growth.

Your health status, family longevity, and whether you want to leave an inheritance also impact your risk tolerance and investment choices.

Common Mistakes to Avoid

I’ve seen too many seniors make these common investing mistakes:

1. Getting too conservative – Putting everything in cash or CDs can lead to inflation eating away your purchasing power

2. Chasing yields – Reaching for high yields usually means taking on more risk than appropriate

3. Ignoring inflation – Not having some growth component means your money loses value over time

4. Overcomplicating things – Simple, understandable investments are usually best at this stage

5. Not adjusting the plan – Your needs and market conditions change; your strategy should too

Final Thoughts: Balance is Key

At 75, your investment strategy should prioritize preservation while maintaining enough growth to sustain your lifestyle and keep pace with inflation. The right mix will depend on your personal situation, other income sources, and financial goals.

I always tell my older clients: “We’re not just investing for today; we’re investing for potentially another 15-20 years.” That’s why some growth component remains important even at this stage of life.

Working with a financial advisor experienced in retirement planning can help you create a tailored portfolio that provides the income you need while protecting what you’ve worked so hard to build.

Remember, it’s not about maximizing returns anymore—it’s about maximizing security while ensuring your money lasts as long as you do.

What investment strategies are you currently using in your 70s? Have you found the right balance between safety and growth? I’d love to hear your experiences in the comments below!