When you retire, you need your money to continue working for you. After years of saving and investing, it’s natural to ask: “How do I make my money last?”
For many retirees—especially those who have built significant wealth—the foundation is already strong. Still, having a thoughtful investment approach is essential. A strategy that manages your assets while also giving them an opportunity to grow can help support your lifestyle throughout your 60s, 70s, and beyond. As a wealth management firm serving clients in Newport Beach and the broader Orange County, CA community, we often see how intentional planning makes a meaningful difference over time.
Ready to explore strategies for pursuing your wealth goals? Schedule a conversation with Tim or Dustin today.
Ask the Appropriate Questions
Before making any major financial decisions, it may help to revisit a few key questions:
- How long do I need this money to last?
- What are my annual expenses?
- What income do I receive from Social Security, pensions, annuities, rent, or other sources?
- How much do I need to withdraw from savings each year to cover essential expenses?
With clear answers, you can decide how to allocate your resources—whether that means investing, using certificates of deposit, holding cash, or combining multiple approaches.
Stay Balanced with Your Investments
Risk tolerance usually shifts as you get older, but that doesn’t mean growth should stop entirely. The right balance can help support both stability and long‑term goals.
Working closely with a financial advisor—particularly one familiar with the needs of retirees in Newport Beach or Orange County, CA—can help ensure your investment plan matches your circumstances, including your age, health, obligations, and family considerations.
Safe Ways to Keep Growing Your Savings
Retirees often prefer lower‑risk options that continue to earn interest without putting principal at unnecessary risk. Here are several vehicles to consider:
Certificates of Deposit (CDs)
CDs allow you to lend money to a bank for a set period in exchange for interest. As long as the bank is FDIC‑insured and your deposits stay within insurance limits, CDs can be a simple and stable option.
Creating a CD ladder—spreading funds across CDs with different maturity dates—can help provide predictable access to cash.
Treasury Bills
T‑bills are backed by the U.S. government and offer short‑term lending opportunities. Holding them to maturity helps ensure your principal remains intact, though inflation can affect purchasing power.
High‑Yield Savings Accounts
These accounts function like traditional savings but offer higher interest rates. Money is typically available when needed, making them a flexible tool for short‑term needs.
Fixed Annuities
Fixed annuities provide guaranteed monthly income from an insurance company. They can be helpful for retirees looking for predictable cash flow. Be sure to consider the financial strength and claims‑paying ability of the issuing company.
Money Market Accounts
Money market accounts blend features of checking and savings accounts. They offer higher interest rates while allowing limited check‑writing or debit use.
Don’t Forget About Required Minimum Distributions
Once you reach age 73, you must begin taking Required Minimum Distributions (RMDs) from traditional IRAs or 401(k)s—even if you don’t need the income yet. Since RMD withdrawals are taxable, planning ahead can help reduce surprises at tax time.
If you have sizable tax‑deferred accounts, it may be worth considering a larger one‑time withdrawal, paying the tax, and then repositioning the money where it can be accessed on your terms.
Extra Strategies for Wealthy Retirees
If you have more savings than you need for daily living, there are additional ways to use those funds intentionally:
- Long‑term care planning: Some life insurance policies provide benefits that may help offset future care costs.
- Estate tax planning: Certain strategies can help ensure your heirs aren’t forced to sell assets to cover taxes.
- Family support: You may be able to fund a grandchild’s education, help with their first life insurance policy, or contribute to a Roth IRA if they have earned income.
Thoughtful planning can help ensure your wealth supports the people and priorities that matter most.
Final Thoughts
Even in retirement, your money can continue to grow. The key is understanding where to allocate your assets, how to balance safety with opportunity, and how to create a long‑term plan that supports your goals.
And you don’t need to navigate this alone. Working with a financial advisor—ideally one who understands the wealth management landscape in Newport Beach and Orange County, CA—can help you evaluate strategies that align with your life, your family, and your future.
If you’re looking for guidance on how to make your retirement savings last, it may be time to discuss a plan that fits your needs, timeframe, and goals.
Important Disclosures:
Content in this material is for educational and general information only and not intended to provide specific advice or recommendations for any individual.
This article was prepared by WriterAccess
LPL Tracking #821094