A few years ago, I was helping a retired couple rebalance their portfolio. Smart folks. They’d done the work—saved diligently, diversified early, and avoided the big investing mistakes most people make when the market gets noisy.
But what they really wanted at that point wasn’t higher returns. They wanted peace of mind. The phrase they used stuck with me: “We don’t want roller coasters. We want something steady enough to let us sleep at night.”
And that’s the heart of it. Once you’re in or near retirement, your definition of “growth” shifts. You’re no longer looking to double your money overnight—you’re looking to outpace inflation, preserve your principal, and generate enough income to live comfortably.
If that sounds like where you are—or where you’re headed—this article is for you. These are six investment options that may offer safer, steadier growth. None are guaranteed (because nothing truly is), but all are grounded in sound financial principles. They’re the kind of investments I’ve seen work well for clients who value sleep just as much as they value returns.
1. High-Quality Dividend Stocks
If bonds are the retirement classic, dividend stocks are their slightly flashier cousin—and they deserve a place in many retirement portfolios.
Dividend-paying companies are typically well-established businesses with steady cash flow. They pay out a portion of their profits regularly (usually quarterly), which can provide income to cover living expenses while also offering some potential for capital appreciation.
Look for dividend aristocrats—companies that have increased their dividends for 25+ consecutive years. Think Johnson & Johnson, Procter & Gamble, or Coca-Cola. These are businesses that have weathered recessions, rate hikes, and technological shifts—and kept paying their shareholders through it all.
Why it works: You’re not just relying on price appreciation. You’re getting paid to hold the investment, and if reinvested, those dividends can supercharge compounding over time.
2. U.S. Treasury Inflation-Protected Securities (TIPS)
Inflation can be sneaky. It doesn’t announce itself loudly—it just quietly erodes your purchasing power over time. That’s where TIPS come in.
TIPS are U.S. government bonds specifically designed to protect against inflation. The principal value of these bonds adjusts with the Consumer Price Index (CPI). As inflation rises, so does the value of your investment.
You still get interest payments (based on the adjusted principal), and at maturity, you get back the inflation-adjusted principal or the original principal—whichever is higher.
TIPS were first issued in 1997. They're considered one of the most direct ways to hedge against inflation risk, especially for long-term retirees on fixed incomes.
Why it works: TIPS aren’t flashy. But they’re reliable, backed by the full faith and credit of the U.S. government, and built to preserve purchasing power—something no stock can promise.
3. Certificates of Deposit (CDs) with Laddering Strategy
CDs have a reputation for being old-school. And in a low-interest environment, they can feel almost pointless. But in times of rising or moderate interest rates, a CD ladder can become a smart tool.
Here’s the idea: You split your investment into several CDs with staggered maturity dates—say 1-year, 2-year, 3-year, etc. As each one matures, you reinvest into a new longer-term CD at current rates.
This creates a steady stream of maturing funds, gives you some protection against rate changes, and ensures that all your money isn’t locked up at once.
Why it works: It’s not a growth machine—but it’s steady, low risk, and FDIC-insured up to the current limit ($250,000 per account holder, per institution). For retirees with a conservative outlook, laddered CDs can provide income stability without market exposure.
4. Fixed Indexed Annuities (FIAs)
Annuities tend to evoke strong opinions—some earned, some exaggerated. But when used thoughtfully, fixed indexed annuities can play a role in safer retirement growth.
Here’s the basic idea: An FIA gives you the opportunity to earn interest based on the performance of a stock index (like the S&P 500), but without actually investing in the market. And crucially, it protects your principal from losses.
That’s right—if the index goes up, you participate in some of the upside (up to a cap). If it goes down, you don’t lose your principal. Think of it like a seatbelted ride on a rollercoaster—less thrill, but also less whiplash.
FIAs typically come with surrender periods and fees if you withdraw early. They’re best suited for a portion of your retirement funds you plan to leave untouched for several years.
Why it works: For retirees uncomfortable with market volatility, but still needing modest growth, an FIA can provide that middle ground—safety with some upside potential.
5. Balanced Mutual Funds or Target-Date Funds (for Simplicity)
If you’re looking for a “set it and semi-forget it” option, balanced funds—or their close cousins, target-date funds—are worth considering.
Balanced funds mix stocks and bonds into a single portfolio. Target-date funds do something similar but adjust the mix over time based on your target retirement date. As you get closer (or deeper) into retirement, the fund automatically becomes more conservative.
The beauty of these funds is that you don’t have to rebalance or make allocation decisions as often—they’re designed to manage that for you.
Why it works: This is a low-maintenance way to stay diversified and aligned with your stage of life. While you give up some control, you also free yourself from constant decision-making—which, for many retirees, is a kind of peace.
6. Municipal Bonds (Especially for Tax-Sensitive Retirees)
If you’re in a higher tax bracket during retirement (yes, it happens more than people expect), municipal bonds—or “munis”—may be a great fit.
Munis are debt securities issued by states, cities, or counties to fund public projects. The big appeal? The interest is often exempt from federal income tax, and sometimes from state and local taxes too.
There are two main types: general obligation bonds (backed by the issuer’s credit) and revenue bonds (backed by income from a specific project). Look for highly rated issuers to reduce default risk.
Why it works: Munis offer consistent income with potential tax advantages—especially appealing if you’re trying to maintain income without crossing into higher tax brackets in retirement.
How to Build a “Sleep-Better” Portfolio
There’s no single formula that works for everyone. But I’ve found the following framework helpful when advising clients who want lower-risk, long-term income and growth:
1. Cover Your Essentials First
Make sure you’ve got the basics—housing, healthcare, food—covered by guaranteed sources (Social Security, pensions, annuities, cash savings). This provides the foundation for calm decision-making.
2. Layer in Stability
Use tools like TIPS, CDs, and high-quality bonds to create a base layer that preserves capital and offers modest income.
3. Add Moderate Growth With Guardrails
Incorporate dividend stocks, balanced funds, or indexed annuities for potential growth without too much volatility.
4. Stay Liquid Where It Matters
Don’t lock everything away. You’ll want accessible funds for unexpected expenses—or just spontaneous travel plans.
5. Check, But Don’t Obsess
Review your portfolio regularly—but not constantly. Once a quarter is often enough for most retirees. The goal is steady course correction, not overreaction.
Security Isn’t Just About Returns
Over the years, I’ve noticed something consistent in people who feel secure in retirement. It’s not just about how much they’ve saved. It’s about how they’ve aligned their money with their values.
They aren’t trying to beat the market anymore. They’re trying to support the life they’ve built, with a portfolio that reflects their pace, their plans, and their peace of mind.
If you’re nearing—or living in—retirement, and the headlines are making you anxious, I invite you to zoom out. Look at your full picture. Ask what you really want from your money. Then use tools like these to create a strategy that helps you sleep a little easier.
Because retirement should feel like a steady exhale—not a financial guessing game.