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Where Should An 80-Year-Old Invest? Smart Money Strategies for Your Golden Years

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Let’s face it—investing in your 80s is a whole different ballgame than investing in your 40s or 50s. I’ve seen too many older folks making the same mistakes with their hard-earned money, either taking on too much risk or being so conservative they can’t keep up with inflation. If you’re wondering where an 80-year-old should invest their money, you’ve come to the right place.

At this stage of life your investment priorities have naturally shifted. You’re probably less concerned with aggressive growth and more focused on preserving what you’ve built while generating reliable income. The good news? There are plenty of smart, safe options that can help protect your nest egg while still earning reasonable returns.

In this guide, I’ll share the best investment strategies for octogenarians based on the latest financial advice and market conditions as of 2025. Let’s dive in!

Understanding Your Investment Goals at 80+

Before jumping into specific investments let’s take a moment to clarify what you’re really trying to accomplish with your money at this stage of life

  • Income generation: Creating reliable streams of cash to supplement Social Security and pensions
  • Capital preservation: Protecting your principal from significant losses
  • Risk mitigation: Avoiding market volatility that could derail your financial security
  • Legacy planning: Possibly setting aside funds for heirs or charitable causes

Your personal situation will determine which of these goals takes priority. Some 80-year-olds are primarily concerned with covering their daily expenses, while others are more focused on preserving wealth for the next generation.

How Much Risk Should an 80-Year-Old Take?

According to investment experts your stock allocation should generally decrease as you age. For someone in their 80s a portfolio with around 20-30% in stocks and 70-80% in bonds and cash equivalents is often recommended.

That said, every situation is unique. If you have substantial assets beyond what you’ll need for your lifetime, you might consider a slightly more aggressive approach for the portion intended for heirs. On the flip side, if you’re concerned about outliving your money, focusing on safe, income-producing investments becomes even more critical.

Top 7 Safe Investment Options for 80-Year-Olds

1. High-Yield Savings Accounts

Why they’re great for 80-year-olds: These accounts offer complete safety through FDIC insurance (up to $250,000) while providing better interest rates than traditional savings accounts.

“High-yield savings accounts offer a safe place for cash while earning a higher interest rate than traditional savings accounts,” says Chad Gammon, a certified financial planner at Custom Fit Financial. “These accounts are still FDIC-insured up to $250,000 and are ideal for emergency funds or short-term savings where you would need the money soon.”

While the returns won’t make you rich, they’re significantly better than keeping money in a checking account. Plus, you maintain complete liquidity—your money is available whenever you need it.

2. Certificates of Deposit (CDs)

Why they’re great for 80-year-olds: CDs offer guaranteed returns and are FDIC-insured, making them virtually risk-free.

If you’re looking for slightly better returns than a high-yield savings account and don’t need immediate access to some of your money, CDs are worth considering. They lock in a fixed interest rate for a specific term, typically ranging from a few months to several years.

“Retirees can choose the term length that best suits their needs, and the interest rates are typically higher than regular savings accounts,” explains Jake Falcon, founder of Falcon Wealth Advisors. “The downside is that funds are locked in until the maturity date, so it’s important to plan accordingly.”

A smart strategy is to create a “CD ladder” by dividing your investment across multiple CDs with different maturity dates. This gives you periodic access to your money while still benefiting from the higher rates of longer-term CDs.

3. Treasury Securities

Why they’re great for 80-year-olds: They’re backed by the full faith and credit of the U.S. government, making them extremely safe.

Treasury securities come in several forms:

  • Treasury bills: Short-term securities that mature in a year or less
  • Treasury notes: Medium-term securities that mature in 2-10 years
  • Treasury bonds: Long-term securities that mature in 20-30 years
  • Treasury Inflation-Protected Securities (TIPS): Securities that adjust for inflation

For an 80-year-old investor, Treasury bills and short to medium-term Treasury notes are usually most appropriate due to their shorter time horizons.

“These securities come in various maturities, allowing retirees to tailor their investment strategy to their specific needs,” says Falcon. “There is risk, as the underlying value may fluctuate up or down based on interest rates and other factors.”

4. Dividend-Paying Stocks

Why they’re great for 80-year-olds: They provide regular income plus the potential for growth, helping to combat inflation.

While stocks generally carry more risk than the options mentioned above, certain dividend-paying stocks from well-established companies can be appropriate for a portion of an 80-year-old’s portfolio.

“Dividend stocks tend to be less volatile than non-dividend-paying stocks,” notes William Connor, a partner at Sax Wealth Advisors. “The consistent stream of income from dividends can cushion the impact of a bear market.”

Focus on companies with:

  • Long histories of paying and increasing dividends
  • Strong balance sheets
  • Businesses in stable industries

Consider limiting your stock exposure to no more than 20-30% of your total portfolio to manage risk.

5. Fixed Annuities

Why they’re great for 80-year-olds: They provide guaranteed income streams that can last for a specific period or for life.

Fixed annuities are insurance products that can provide reliable income in retirement. In exchange for a lump sum payment, an insurance company promises to pay you a fixed amount periodically for a predetermined time or for life.

“Fixed annuities are insurance contracts that provide income for a specified period or for life,” explains Gammon. “They are popular if you want predictable income.”

However, annuities can be complex and come with fees, so it’s essential to understand all the terms before investing.

“Check an annuity’s fees and understand that you’ll have limited access to your principal,” Gammon advises. “But they can be a helpful tool covering basic living expenses in addition to Social Security or a pension.”

6. Money Market Accounts

Why they’re great for 80-year-olds: They offer better interest rates than regular savings accounts while maintaining high liquidity.

Money market accounts are similar to high-yield savings accounts but may offer slightly higher interest rates in exchange for maintaining a minimum balance. They’re FDIC-insured up to $250,000 and typically allow limited check-writing privileges.

Like high-yield savings accounts, money market accounts provide easy access to your funds while earning interest, making them ideal for emergency funds or short-term expenses.

7. Stable Value Funds

Why they’re great for 80-year-olds: They offer better returns than cash with minimal risk to principal.

Stable value funds are a low-risk investment option typically found in employer-sponsored retirement plans like 401(k)s. They invest in high-quality, short-term fixed-income securities and include insurance contracts that help maintain a stable value.

“These don’t get nearly enough attention,” says Neal Gordon, founder and CEO at Gordon Wealth Planning. “They can be a great fit for someone who’s looking for safety but wants better returns than your standard savings account. They’re designed to protect principal and deliver steady returns, which can be really reassuring.”

Additional Investment Tips for 80-Year-Olds

1. Beware of Scams and Fraud

Unfortunately, seniors are often targeted by financial scams. Be especially wary of:

  • Investment opportunities that promise unusually high returns
  • Pressure to make quick decisions
  • Unsolicited investment offers
  • Anyone claiming to be a “deposit broker” without proper credentials

Always research any investment opportunity thoroughly and consult with trusted family members or financial advisors before making decisions.

2. Consider Your Health and Longevity

Your health status and family history of longevity should influence your investment strategy. If longevity runs in your family or you’re in excellent health, you might need to plan for a longer time horizon, potentially justifying a slightly more growth-oriented approach.

3. Plan for Potential Long-Term Care Expenses

Long-term care costs can quickly deplete savings. Consider setting aside funds specifically for potential healthcare needs or explore long-term care insurance options if you haven’t already.

4. Review Your Beneficiary Designations

Ensure your beneficiary designations on all accounts are up-to-date to avoid complications for your heirs.

5. Seek Professional Guidance

At this stage of life, working with a financial advisor who specializes in retirement planning can be invaluable. They can help you create a personalized investment strategy that aligns with your specific needs and goals.

Recommended Asset Allocation for 80-Year-Olds

Here’s a general framework for how an 80-year-old might allocate their investments:

  • 50-60%: Fixed-income investments (bonds, CDs, Treasury securities)
  • 20-30%: Cash and cash equivalents (high-yield savings, money market accounts)
  • 10-20%: Conservative stocks (primarily dividend-paying blue-chip companies)
  • 0-10%: Alternative investments (annuities, etc.)

Remember that this is just a starting point—your ideal allocation should be tailored to your specific circumstances.

Final Thoughts

Investing in your 80s is all about finding the right balance between safety and growth. While preserving capital is important, having at least some growth-oriented investments can help ensure your money lasts throughout your lifetime and keeps pace with inflation.

The most important thing is to align your investment strategy with your personal needs, goals, and risk tolerance. By focusing on safe, income-generating investments while maintaining a small allocation to growth assets, you can create a portfolio that provides both security and sustainability throughout your golden years.

Have you found success with any particular investment strategies in your 80s? I’d love to hear about your experiences in the comments below!

where should an 80 year old invest

What Seniors Should Look for When Investing

When determining the safest ways to invest, you should consider the following:

  • FDIC-insured accounts: Get peace of mind knowing that your deposits are federally protected. The insurance amount is currently $250,000 for certain investment options.
  • Low-risk, low-return investing: If you’re not a risk-taker, that’s okay. Safe investment options may offer low risk and low returns, but it’s helpful if you’re looking for a way to generate passive income long-term without rolling the dice.
  • Diversification: For low risk, focus on the future of your long-term investments. Consider diversifying your investment portfolio with multiple safe investment options like high-yield savings accounts and bonds instead of relying on Social Security or retirement savings. It’s always better to have more options when it comes to retirement income.
  • Safe investing apps and resources: Educate yourself by downloading safe investing apps and resources or speaking with a financial advisor.

Did You Know: Diversify your investment portfolio. If you’re not into stocks, low-risk investments such as high-yield savings accounts and CDs can be great alternatives.

Why Should Seniors Invest Their Money?

While seniors should reduce the risk in their investment portfolios––as they no longer have the rising incomes of a full-time job––investing money safely can help prolong one’s retirement funds.

where should an 80 year old invest

Two of the reasons why seniors might be hesitant about investing their money are the stigma attached to investing and the desire to avoid taking significant risks after retirement. Some older adults might be unfamiliar with or fear investing due to inexperience.

However, with safer investment options and a diverse investment portfolio, seniors can have peace of mind and earn money with minimal risk. For example, safe investing can be a good option for seniors looking to pass down money to family members or pay for long-term care.

FYI: Investments should play a part in your overall estate plan. Read my guide, What Is Estate Planning, to learn about other important factors.

How Should You Invest in Your 70s?

FAQ

Should seniors invest?

However, with safer investment options and a diverse investment portfolio, seniors can have peace of mind and earn money with minimal risk. For example, safe investing can be a good option for seniors looking to pass down money to family members or pay for long-term care. FYI: Investments should play a part in your overall estate plan.

Should 80-year-olds invest in long-term investments?

At least put it in a CD and let the interest accumulate on the funds you don’t have an immediate use for. 80-year-olds have limited options with long-term investments since they don’t have time on their side. For example, investing in an asset with a 20-year maturity may not be ideal unless you want to leave the proceeds for your beneficiaries.

What is a good investment for a 70 year old?

The average 70-year-old would most likely benefit from investing in Treasury securities, dividend-paying stocks, and annuities. All of these options offer relatively low risk. What is the safest investment with the highest return?

How should someone in her 80s have her money invested?

If you are in your 80s, your investments need to reflect that reality. Often investors are reluctant to make changes in an investment portfolio to acknowledge advancing age, the likelihood of increased medical expenses and of approaching mortality.

What are the best investment strategies for 80-year-olds?

Based on the insights from Morningstar and the Financial Times, here are some recommended investment strategies for 80-year-olds: 1. Prioritize Income Generation: Fixed-income investments: Bonds, CDs, and money market accounts offer predictable income streams, making them ideal for generating reliable income.

Should you invest in your 80s?

If you are in your 80s, your investments need to reflect that reality. Often investors are reluctant to make changes in an investment portfolio to acknowledge advancing age, the likelihood of increased medical expenses and of approaching mortality. What is a good investment for a 70 year old?

Should an 80 year old get out of the stock market?

Generally if the person is retired, it is not advisable to invest all his/her money in the stock market because it is volatile and uncertain in short period of time. At this age, most of the people would have dependent and his asset or lifetime earning to protect.

What is the safest investment for the elderly?

Treasury Bonds

Issued by the U.S. government, these bonds are considered one of the safest forms of investment. Backed by the full faith and credit of the government, Treasury bonds offer a stable, low-risk way to ensure a reliable income stream in your senior years.

How should an 80 year old invest their money?

Many retirees find that a mix of fixed income investments (like bonds and CDs), dividend-paying stocks, and conservative growth assets works best for ensuring they meet their financial needs without exposing themselves to too much risk.

Where is the best place for seniors to invest money?

The best investment options for retirement that are deemed safe and comparatively low-risk include:
  • Bonds. …
  • Annuities. …
  • Certificates of Deposit. …
  • Stock options. …
  • High-yield savings accounts. …
  • Treasury inflation-protected securities (TIPS)

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