How To Build Wealth in Your 60s Without Taking Big Risks
Written by
Brooke Barley
Edited by
Amen Oyiboke
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Strategies to save up for retirement don’t have to be perilous. Retirees can still take it easy even if they are actively making a nest egg for the golden years.
These are the prudent wealth-building methods experts recommend for those in their 60s that won’t involve putting a lot of money or stress on the line.
Rent Out a Part of Your Home
Homeownership is an asset, so why not make it generate income for you? Adam Hamilton, the co-founder of REI Hub, said those in their 60s can make reliable extra income by renting out a part of their home.
“Maybe you have a pool house, an in-law suite, or a furnished basement with a small kitchen. Maybe you just have a spare bedroom and bathroom that are a bit separate from the rest of your home,” said Hamilton. “If you can turn a space like those into a short-term rental, that can be a fantastic way to invest in real estate and start making consistent money without having to actually buy an entire rental property.”
Invest in Stocks That Will Pay No Matter What
If you’re going to invest in the stock market, there are ways to do it that mitigate your risk. For example, Rami Sneineh, the vice president of Insurance Navy Brokers, recommends that his clients invest in dividend stocks to ensure they’re still making money even if the stock market dips.
“Their focus at this stage is no longer highly aggressive returns, but more to ensure that their funds will hold out to their retirement. This can be done in a consistent manner by putting money in dividend-paying stocks or mutual funds, which have a history of consistent payments,” said Sneineh.
Look Into Bonds and CDs
Another recommendation that Sneineh gives to his client is to put money in assets with definite returns. That includes securities like bonds and Certificates of Deposits (CDs) that mature over time to deliver a set amount of cash after a period. “I tend to orientate clients to the establishment of a bond or CD ladder, where the maturity period is distributed in a way that guarantees a steady cash flow every few years.”
Steven Rife, a financial advisor at Wealth Enhancement Group, agreed that bonds specifically could be a great way to bring diversity to a portfolio, which increases the amount of income streams a person would have. “If an investor hasn’t revisited their stock versus bond allocation over the past few years, it’s likely that their overweight stocks. Now may be a good time to increase their allocation to fixed income and reduce the volatility of their portfolio.”
More From GOBankingRates
