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9 Savvy Investing Strategies if You’re Over 70

Refine your investment strategies to align with new goals.

By Sarah Sharkey

Edited by Chris Kissell

Updated Dec. 17, 2024

Throughout your lifetime, appropriate investment strategies can change. What made sense for your investment portfolio in your 30s or 50s won’t necessarily be appropriate in your 70s.

The good news is that taking the time to refine your investment strategies can boost the odds of a stress-free retirement.

Here are some savvy investment strategies to consider after age 70.

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Speak with a financial adviser

As you age, spending needs and financial goals will likely change. Instead of keeping investment strategies static, make adjustments to support newfound financial goals.

If you aren’t sure where to get started, working with a financial advisor might be a good first step.

A competent financial advisor can help you retool your investment portfolio to support your current needs. For example, if you're ready to favor stability over growth, an advisor can adapt your portfolio to this new goal.

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Decide whether you are spending too much

Once you retire from paid work, the focus shifts from growing your money to ensuring you aren’t spending more than your nest egg will allow. As a rule of thumb, many experts recommend spending no more than 4% of your portfolio’s value each year.

For example, if you have a $1 million investment portfolio, you can safely spend around $40,000 annually.

Retirees who spend beyond that 4% raise the risk that their nest egg could be depleted before their retirement years end.

Taking the time to run the numbers can help you ensure you aren’t overspending. Consider reviewing your savings each year to confirm you aren’t spending more than you can support.

Assess whether your risk tolerance has changed

It’s natural for your risk tolerance to change over time. In general, investors tend to have a lower risk tolerance in their 70s than they had earlier in life. So, it might be time to adjust your investment portfolio.

For example, you might transition part of your investment portfolio into low-risk savings accounts or CDs. A financial advisor can help determine if this is the right path for you.

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Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

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Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹ This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>. Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.25% (as of 11/15/24) APY² Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings. on your uninvested cash³ Interest is earned on uninvested cash swept from your brokerage account to partner banks. Partner banks pay interest on your swept cash, minus any fees paid to Robinhood. As of Nov 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Gold customers. The APY might change at any time at the partner banks' or Robinhood's discretion. Additionally, any fees Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. and the ability to buy and sell stocks 24 hours a day, 5 days a week.

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Have a plan for taking RMDs

When you reach age 73, you'll need to start taking required minimum distributions (RMDs). If you skip RMDs, the IRS will charge you up to a 25% penalty.

So, it’s important to follow the RMD rules. Research how much you need to take out each year to avoid the penalty.

Put your RMD to work

Although you are required to take a minimum distribution, you aren’t required to immediately spend the funds. If you don’t want to spend the RMD, consider reinvesting it.

A taxable brokerage account or a 529 account for your grandchildren are just some places to reinvest the money.

File for Social Security if you haven't

It’s important to file for Social Security benefits no later than age 70.

Although waiting to file for Social Security benefits typically results in a bigger monthly benefit up to age 70, there is no additional benefit in waiting beyond that age.

Many retirees spend all of their monthly Social Security benefits. But if you have other income sources or are simply exceptionally frugal, you could choose to tuck your Social Security check away into a high-yield savings account or to invest it in a taxable brokerage account.

Grow Your $$: 11 brilliant ways to build wealth after 40

Create or review your estate plan

As you enjoy your golden years, it’s a good time to review your estate plan. A carefully crafted estate plan can ensure your wishes are carried out after you die.

Some documents you might need include a will and a health care directive. Additionally, make sure you have selected beneficiaries for your financial accounts.

Decide whether you need life insurance

Carrying life insurance during your working years is a no-brainer for those with dependents. But after retirement, it’s important to re-evaluate your need for this coverage.

In general, retirees with debts or those who still provide some level of financial support to their families might need life insurance. But life insurance might not be necessary if you're debt-free and have enough savings for dependents to live on.

Take the time to weigh the ongoing costs of life insurance against your needs. It might help to discuss your needs and options with a financial advisor.

Decide whether to purchase long-term care insurance

Long-term care insurance can help you pay for long-term care services as you age. For example, it could help you pay for nursing home expenses or at-home care services. Medicare generally does not cover these costs.

Long-term care insurance typically becomes more expensive as you age, so coverage will probably cost more in your 70s than it would have in your 50s. However, the expense could still pay off if you end up needing long-term care services.

It can be challenging to decide whether this coverage makes sense for you. Start by getting some quotes to see how much long-term care insurance might cost for you. Then run the numbers to determine whether or not long-term care insurance is right for your situation.

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SoFi is a Member, FDIC. ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a>

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Bottom line

As you age, your investment goals and strategies might change. Take action to decide whether you need to tweak your investment strategy to maximize your savings going forward.

If you are younger and are still planning for retirement, running the numbers now can help ensure you'll have enough once you reach your golden years.

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