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Owning your home can make you feel more secure as a retiree. It can also be having some savings to take advantage of. If you have $143,000 in cash, you should do something with it, since having that much money in the bank is not a good idea. You risk missing out on opportunities and having the value of your money eroded due to inflation.
But what should you do with that money? Since you’re already retired, you should be a little more cautious with your investment choices than your younger counterparts; At the same time, $143,000 isn’t enough money to live forever, but you also can’t afford to be too conservative. Fortunately, if you already own a home, at least you know you have an asset to fall back on if necessary.
Here are some things to consider before investing that cash.
Investing involves uncertainty, which is the last thing many of us want in retirement.
With President Donald Trump’s administration imposing widespread tariffs against nations like China and Russia, and even allies like Canada and the EU, global relations (and the stock market) have been volatile.
That volatility can make the stock market riskier than usual, because it is less predictable.
And as a retiree, you don’t want to be in a situation where you have to sell stocks for income during a market downturn.
While these risks are very real, the risk of being too conservative cannot be ruled out either. If you are simply spending your money without making a profit, it is more likely that your funds will run out while you still need them.
Your best option may be to balance “riskier” investments with higher potential returns and safer investments that will give you limited returns. A common rule of thumb is to subtract your age from 110 and put that amount into stocks. Following this rule, a 66-year-old person would invest 44% of their money in stocks and 56% in fixed income investments, such as bonds.
This approach can limit potential losses in a market downturn, especially if you keep some funds in cash. This way, you won’t be forced to sell stocks for income during a market decline. If you are retired and need to take advantage of this money, it is essential to limit losses and avoid too much exposure to market fluctuations.
But ultimately, it’s better to get professional, personalized advice rather than relying on a general rule.
That’s why it might be helpful to speak to a qualified financial advisor.
Vanguard research shows that working with a financial advisor can add approximately 3% to net returns over time. That difference can be substantial. For example, if you started with a $50,000 portfolio, professional guidance could mean more than $1.3 million of additional growth over 30 years, depending on market conditions and your investment strategy.
Finding the right advisor is easy with Advisor.com. Their platform connects you with licensed financial professionals in your area who can provide you with personalized guidance.
A professional advisor can also help you determine how many years you have left to invest before you retire and assess your comfort level with market fluctuations, two key factors in creating the right asset mix for your portfolio.
Through Advisor.com, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan.
Read more: Is retirement approaching without savings? Don’t panic, you are not alone. Here are 6 easy ways to catch up (and quickly)
Beyond determining your ideal asset allocation, you also need to know where to invest your money. Considering that everyone’s situation is unique, an exchange-traded fund (ETF) that tracks the S&P 500 is a common choice for U.S.-based stock holdings.
The S&P 500, comprised of 500 of the largest U.S. companies, had an annualized return of 12.5% over the past five years (1). And since S&P 500 ETFs tend to be passively managed, you’ll be charged minimal fees for instant diversification.
One of the easiest ways to invest is to open a self-directed trading account with SoFi. This DIY approach allows you to invest commission-free, plus for a limited time, you can earn up to $1,000 in stocks when you fund a new account.
SoFi is designed to help you learn how to invest on the go, with real-time investing news, curated content, and the data you need to make smart decisions about the stocks that matter most to you.
While the S&P 500 offers some degree of diversification, it is not perfect. This is because not all companies in the index have the same weighting. Due to their size, only five companies (Nvidia, Microsoft, Apple, Alphabet and Amazon) represent 30% of the entire S&P 500 according to CNBC (2).
Therefore, your portfolio would be highly exposed to technology and artificial intelligence. If you’re looking to invest in companies outside of the S&P 500 or in different industries, it can be difficult to know where to start.
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*Returns from 01/22/2026. Past performance is no guarantee of future results. Individual investment results may vary. Every investment involves risk of loss.
Of the remaining funds, you’ll probably want to set aside a few months for living expenses in an affordable high-yield savings account, along with other low-risk options like,
Bonds are a debt instrument, meaning you are essentially lending money to a corporation (corporate bonds) or the government (Treasury bonds) in exchange for regular interest payments until the bond matures.
CDs are investment vehicles that are often purchased from banks. They typically offer a higher return than a savings account because the investor agrees to “lock in” their money for a set period (usually three months to five years). The issuer guarantees the investor both the interest rate and the principal balance.
Bonds can be advantageous for some retirees as interest is usually paid quarterly, so they have a regular income stream. They can often have higher interest rates than CDs as well. Bonds are not FDIC insured like CDs, but if you buy Treasury bonds, you are betting on the full faith and credit of the federal government, so you are not taking on significant risk.
Ultimately, investing your money is your best option to tap into your savings, but only once you’ve considered your risk tolerance and set aside enough cash in an easy-to-access account.
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S&P Global (1); CNBC (2)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
