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6 Smart Strategies for Investing in Your 60s

Secure your future with tailored investment strategies for your golden years.

By Adam Palasciano

Edited by Eric McWhinnie

Updated Dec. 17, 2024

As you enter your 60s, your investment strategy may need to be adjusted to align with your retirement goals and risk tolerance.

Whether you're nearing retirement or already enjoying your golden years, making informed investment decisions is crucial to secure your financial future.

Here are six essential tips to help you navigate the investment landscape and make the most of your assets in your 60s.

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Take a second look at your retirement plans

As you approach retirement age, it's essential to review your retirement plans, including your 401(k), IRA, and pension accounts.

Evaluate your projected income needs, expected expenses, and retirement timeline to ensure your investment strategy aligns with your retirement goals.

Consider consulting a financial advisor to help you create a comprehensive retirement plan tailored to your needs. Life circumstances and financial goals may change, so periodic reviews of your retirement plans are crucial to keep them aligned with your objectives.

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Re-evaluate your asset allocation

In your 60s, it's prudent to shift your asset allocation toward more conservative investments to protect your savings from market volatility.

Review your investment portfolio and consider reallocating some of your assets from growth and small-cap stocks to reliable, dividend-paying stocks.

Balancing risk and return becomes increasingly important as you approach retirement to preserve your wealth and generate income.

Keep in mind that while conservative investments offer stability, maintaining a diversified portfolio can help mitigate risk while potentially capturing market opportunities.

Don’t ignore catch-up contributions

If you're behind on retirement savings, take advantage of the 2024 $7,500 catch-up contribution limit the IRS allows for individuals aged 50 and older.

Anyone can contribute up to $23,000 to their 401(k) plan, so for individuals aged 50 and older, that's a total of $30,500 for tax year 2024.

Catch-up contributions can significantly boost your retirement savings and help you reach your financial goals faster. You can bridge the gap between your savings and your desired retirement nest egg by leveraging catch-up contributions.

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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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Max out retirement account contributions

Utilize tax-advantaged retirement accounts to their fullest potential by maximizing your yearly contributions.

Contribute the maximum allowable amount to your 401(k), IRA, or other retirement savings vehicles to take advantage of tax benefits and build a robust nest egg for retirement.

Consider automating your contributions to ensure consistency and discipline in your savings efforts.

Maximizing your retirement account contributions reduces your taxable income and accelerates the growth of your retirement savings, thanks to compounded interest.

Consider low-risk investments

As you near retirement age, consider prioritizing capital preservation and income generation by investing in low-risk assets such as bonds, CDs, and dividend-paying stocks.

These investments offer stability and regular income streams while minimizing the impact of market fluctuations on your portfolio.

Diversify your investments across different asset classes to reduce risk and enhance portfolio resilience. While low-risk investments may offer lower returns compared to riskier assets, they provide stability and protection of principal, which is crucial during retirement.

Be aware of inflation

Inflation erodes the purchasing power of your savings over time, making it essential to account for inflation in your investment strategy. Consider choosing an investment that offers direct inflation protection, such as Treasury Inflation-Protected Securities (TIPS).

Regularly review your investment portfolio and adjust your asset allocation to mitigate the impact of inflation on your retirement income.

Additionally, consider investing in assets with growth potential to outpace inflation and maintain the purchasing power of your savings over the long term.

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

Bottom line

Don't let your retirement become an investment afterthought. Take action now to solidify your financial future.

By following these tips and consulting with a professional, you can craft an investment strategy that safeguards your nest egg, fuels your golden years, and creates the stress-free retirement you deserve.

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Art investments have outperformed the S&P 500 by over 131% for 26 years
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Steal this billionaire wealth-building technique

Take a second look at your retirement plans

Re-evaluate your asset allocation

Don’t ignore catch-up contributions

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Max out retirement account contributions

Consider low-risk investments

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Be aware of inflation

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