If you're an 80 year old looking to increase your portfolio during retirement and maintain a conservative approach, there are several options available. Money market accounts, investment funds, preferred stock, life insurance, certificates of deposit, and Treasury securities are all viable options. Individual Retirement Accounts (IRAs) are a popular choice for seniors, and can be opened with an online broker, an automatic advisor, or a mutual fund company. Many retirees rely on their own savings for a portion of their retirement income, such as traditional and Roth IRAs, 401(k)s, 403(b)s, SIMPLE IRAs, and taxable investment accounts.
Other sources of income may include collectibles, antiques, and property. Selling your primary residence and investing part of the profits is also an option. When it comes to short-term needs such as a new car, home repairs, vacations, or medical care, money market accounts, certificates of deposit and Treasury bills are safe places to store cash. These secure investments provide a small return in the form of interest and return of principal.
Conservative investors prioritize return on capital over all else; they don't want to lose money. It's important to consider that sufficient income this year may not extend far enough to pay the bills 10, 20 or more years in the future.
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