Thu Aug 22 2024, by Tyler Gardner

How to Invest $1 Million as a Conservative Investor Nearing Retirement

Here is exactly how I would invest $1 million if I were close to retirement and was a truly conservative investor who wanted to protect my assets at all costs.

1. Fixed Index Annuities (30-40%)

I’m Tyler, a former financial advisor and portfolio manager, and now I create financial content for free so you don’t have to pay for it. The first step I’d consider is putting 30 to 40% of my assets into fixed index annuities. I know, you never thought you’d hear me say that! This would provide me with a minimum return combined with some potential gains tied to an index like the S&P 500. It would offer me principal protection plus steady income.

2. Treasury Inflation Protected Securities (20-30%)

Next, I would consider investing 20 to 30% in Treasury Inflation Protected Securities (TIPS). These are guaranteed and backed by the US government; interest payments and principal adjustments are directly linked to inflation. This ensures I don’t have to worry about losing the purchasing power of my hard-earned retirement money.

3. Stable Value Funds (30-40%)

Lastly, I might invest the remaining 30 to 40% in stable value funds. These funds are frequently found in employee-sponsored plans, have relatively low volatility, and can offer you stable returns in retirement. They also tend to provide higher rates than money market funds or certificates of deposit. If any of this is helpful, like and follow, and I'll keep trying to get you one step closer to where you need to be.

Source