Mon May 26 2025, by Tyler Gardner

Investing a Million Bucks in Retirement for Safety and Income Generation

I'm Tyler, a former financial advisor and portfolio manager. If any of this is helpful, check out this week's episode of the podcast, Your Money Guide on the Side, by clicking the link in my bio. I go over this and other strategies in far greater detail.

1. $350,000 in a Bond Ladder

Start with a bond ladder from one to five years for steady income, capital safety, and to minimize interest rate risk.

2. $200,000 in a Fixed Index Annuity

No, I don't sell them, and no, they're not as awful as some people say. They are particularly useful if you want zero market downside, acting as the equivalent of a DIY pension.

3. $150,000 in Blue Chip Dividend Stocks

For these companies, boring is better. Think Johnson & Johnson, Procter & Gamble, and Coca-Cola. They pay steady dividends and tend to hold up better than growth stocks in market downturns.

4. $100,000 in Preferred Stocks or REITs

Preferred stocks provide fixed income, while REITs offer monthly cash flow with the bonus of being a partial inflation hedge, making them a great physical asset for diversification.

5. $100,000 in Cash or Cash Equivalents

This serves as your peace of mind fund. Keeping one year in cash on the sidelines is always helpful if you're prioritizing safety.

6. $100,000 in TIPS

Invest in Treasury Inflation Protected Securities (TIPS). These are government bonds that automatically adjust for inflation.

Conclusion

This portfolio's goal is to achieve 3.5% to 4.5% income per year with minimal drawdowns and zero sleepless nights. Again, if any of this is helpful, tune into the podcast as I'll go over this in more detail.

Source