• How to Keep Investing While You’re Retired

  • by Guest Author
Invest in Retirement

The retiree of today has a unique set of circumstances and challenges from retirees of the past. For one, people are living much longer than before. Today, a sixty-something man or woman has a 50% chance of living into their eighties, according to an article from CBS News.

Second, retirees no longer see retirement as a pure state of rest. In fact, many people continue to work, travel, and live life on their own terms; and it’s paying off. Research from Oregon State University shows that working past 65 means an 11% lower risk of death from all causes.

What does this mean? This shows retirees may spend more time and money in retirement. They’ll have to plan to make their retirement savings stretch and even keep money coming in even when they aren’t receiving a steady paycheck from a job. It means that they’ll likely need to keep investing even though they are retired.

If you’d like to know how you can continue to invest, even in retirement, these tips will help. We also recommend speaking to a financial advisor.

Plan First, Then Invest

According to Andrew Wang, managing partner at Runnymede Capital Management, the first thing a retiree should do is plan. He says, “Understanding your expenses and needs in retirement allows you to reverse engineer what kind of returns you’ll need from your investment portfolio.”

From this place, you’ll start to choose investment strategies that support your lifestyle and reduce your tax liability. Wang also believes retirees should be aware of their position as investors because of the change in income source. “It is important to adjust for the fact that you can no longer replenish your nest egg with a paycheck,” he says. Wang recommends that more volatile investments, like securities, take up less space in a retiree’s portfolio.


Matt Adams, financial advisor at My Texas Advisor, says that retirees should have a portfolio that reflects their financial goals. He notes, “If the purpose [of investing] is retirement income, your portfolio might look different than someone investing with the purpose of passing down as much as possible to their heirs.”

Adams goes on to say that a good strategy would be to have varying investments for different goals. “If you find that your savings has multiple objectives, then consider segmenting your savings into different investment strategies that will support each goal,” he says.

Practically, this might mean owning a brokerage account to support lifestyle expenses or business holdings that contribute to charitable causes.


On the cusp of retirement, you’ll want to talk with your financial planner to make sure your investments reflect the stage of life you are in. According to Roger Whitney, a CFP, retirees may adjust their investment strategy from investing for growth to investing for income.

Ideally, a retiree’s portfolio could have a mix of investments that provide both income and growth, but with an emphasis on income. “This can be a mix of fixed income and equities that pay dividends,” says Whitney. He urges retirees to have a growth component to their investing as well saying, “Growth likely will need to be part of the equation in order to help keep up with inflation.”

Add Income

Another option for retirees to invest even while they are retired is to actually not have to use their retirement funds. Anything that helps add more income to your bottom line is ideal.

For example, having a part-time job or rental property could help with this strategy. With a reverse mortgage, retirees could get extra cash to keep from using their savings, as well.

There are many ways to “skin” the extra income cat so you can continue to invest well into your golden years. You’ll have to choose one that works best for you and your lifestyle preferences.

Aja McClanahan is a freelance writer and owner of www.principlesofincrease.com/.