Younger investors usually have a high risk appetite and are ready to explore various investment avenues. However, things change as a person grows older. People nearing their 50s look for safer options with minimal risk. One reason for this is their scope for steady income reduces, and they start planning for retirement. Considering this, experts generally advise people to revisit their portfolios and invest in safer avenues as they grow older.

Safe investments for seniors
Truth be told, no investment option has zero risk. However, by researching and thinking, you can find options that provide reasonable returns for your post-retirement life while ensuring your principal is safe. Here are the six best investments for seniors:

Treasury bills
Treasury bills are one of the safest investments as they are backed by the government. However, they have short maturities of up to a year, and you may lose money if you sell them earlier. Treasury inflation-protected securities (TIPS) are ideal for long-term investments. They are available in tenures ranging from five to 30 years, with interest paid out twice a year.

Certificate of deposit
You can buy a certificate of deposit from a financial institution. It requires you to deposit money for a fixed period, providing a fixed interest in return. CDs are insured for up to $250,000, making them relatively safe.

High-yield savings account
Banks and credit unions offer federally insured high-yield savings accounts. These accounts provide higher interest rates than regular accounts (compounded daily or monthly). Moreover, since they are FDIC insured, the risk of financial loss is minimal. Most banks may also waive monthly fees for seniors.

Dividend-paying stocks
Consider investing in stocks of well-established companies that pay dividends regularly. You may continue to receive dividends despite fluctuations in the stock market.

Preferred shares
If you buy preferred shares, you get a fixed dividend ahead of regular stockholders, but you may not have voting rights. They also offer higher dividends than the company’s common stocks or bonds.

Fixed annuities
Insurance companies issue fixed annuities that pay interest on your deposited amount throughout your lifetime. If you withdraw a portion of the deposited amount, your beneficiaries will receive the remaining sum after your lifetime.

Tips for choosing the right investment
Investing wisely can help you achieve financial security in your golden years. Retirement planning should start early, say in your 30s. Here are a few tips to guide you:

Save about 10% of your annual income.
Talk to experts about different investment plans for your age because the scope for a steady income keeps reducing as you grow older.
Be clear about how much you want to invest in stocks, bonds, and assets and how much you want to keep as cash.
Make your investment plans keeping in mind your long-term goals.
Set aside money for health expenses, travel, charity, and inheritance and invest the rest.
Your criteria for post-retirement investment should be safety, followed by income generation.
Understand how easily your investment can be bought or sold so that you can liquidate them during a financial emergency.
Diversify your portfolio across multiple safe investments to maximize returns and reduce risk.
Compare fees and services offered by financial companies and look for exclusive discounts, fee waivers, and tax benefits for seniors.