MW 'I want safe returns': I'm 73 with $300,000 saved. I'm not interested in the stock market. What should I do?
By Quentin Fottrell
'I'm not concerned about leaving money to the next generation'
"I'll likely need to access some of it within a year or two." (Photo subject is a model.)
Dear Quentin,
I have $300,000 in a retirement account. I am 73 years old and I am still working at my own business, and I have emergency funds in place. I'm not concerned about leaving money to the next generation, and I'd prefer not to keep my savings in the stock market. What are some other options on offer? I want safe returns. I'm not sure when I'll need the money, but I'll likely need to access some of it within a year or two.
Would-be Retiree
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You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.
The war in Iran has thrown the prospect of future rate cuts into disarray.
Dear Retiree,
You know what you want. Keep a large chunk of your money accessible.
Split your $300,000 into three $100,000 plans: (1) For the next two years, keep $100,000 in very low-risk and highly liquid options such as the aforementioned high-yield savings or deposit accounts, money-market funds, or short-term government bills; (2) For two to five years, consider short-term bond funds and/or building a short CD or Treasury ladder; (3) For five years and longer, look at longer-term government bonds.
At your age, you have every right to be cautious, especially as you're soon going to retire. Not everyone has the same risk tolerance. If you do have money in a retirement account, you will have to take your Required Minimum Distributions very soon, so while you are still working you also have to think about managing your tax bracket: Social Security and income from your business alone probably means that you have a healthy income in your 70s.
The 70/30 rule in your early 70s suggests keeping 70% of your portfolio in bonds and 30% in stocks for capital preservation, although some people do the opposite (70% stocks and 30% bonds, which would be considered pretty aggressive, prioritizing growth over capital preservation). As you get older those percentages usually change to reflect the amount of time you have to recover from a major correction in the markets (the "sequence of return" risk).
You, my friend, don't want any truck with the stock market at this point. You want a steady income and a quiet life. You have a choice between CDs and high-yield savings accounts $(HYSA)$. CDs have set interest rates for a period of time that attract people looking for a safe haven for their cash. High-yield savings accounts are more liquid, so you can take out your money more easily. Typically, withdrawals are limited to half a dozen per month.
Dollar-cost averaging
With CDs, you are committing to tying up your cash for a set period. While interest rates, based on the Federal Reserve's benchmark rate, can change with high-yield savings accounts after you deposit your money, when you buy a CD, the rate does not change and you can't typically take your cash out without a penalty, which varies by financial institution. In March, CD rates were around 4.20%; the war in Iran has thrown the prospect of future rate cuts into disarray.
If you're overly concerned about short-term fluctuations, you could employ a dollar-cost-averaging strategy, where you divide the amount to be invested in vehicles - be they Treasuries or CDs - into equal-size contributions and then invest them over a longer period of time. As long as you have enough money to live on with your other sources of income, plus a 12-month emergency fund, you have enough time to play around with.
That said, here's what you'd be missing by skipping the stock market: The idea is to withdraw less than or even the same as your investments are earning in a fund. If you withdrew 4% of a $300,000 retirement fund invested in the market, that would equate to $12,000 a year, or $1,000 a month. With a 7% annual rate of return, your $300,000 would grow to $828,000 over the next 15 years while you are taking those 4% withdrawals. Just for the record.
Treasury or CD ladder
Follow your own gut by putting your money in a secure vehicle like a Treasury or CD ladder. A "bond-tent strategy" involves gradually exposing your portfolio's allocation to bonds in the years leading up to your retirement, keeping a higher bond allocation during the early phase of retirement, and gradually lowering that exposure later in retirement. The logic: You get to retire on the appointed date, regardless of what happens on the markets.
"A bond ladder is a portfolio of individual CDs or bonds that mature on different dates," Charles Schwab $(SCHW)$ says. "This strategy is designed to provide current income while minimizing exposure to interest-rate fluctuations. Instead of buying bonds that are scheduled to mature during the same year, you purchase CDs or bonds that mature at staggered future dates. Spreading out maturity dates can help prevent investors from trying to time the market."
Finally, even without heirs, Edward Jones advises people at your age to have an estate plan. These include a will, incapacity documents (designating a financial power of attorney and healthcare directive), trust, charitable contributions, and beneficiary designations for your home, life-insurance accounts and bank accounts (you can use transfer-on-death or payable-on-death deeds to avoid probate, which is a public and exhaustive process).
Preserve your purchasing power and keep an eye on your tax brackets. The rise in the cost of living is one of the biggest enemies for retirees who are generally on a fixed income. Interest earned on savings, bonds and CDs is generally taxed at ordinary income rates, so consult a tax professional to make sure how you can avoid sliding into a higher tax bracket. That can increase your modified adjusted gross income and impact your Medicare premiums.
You sound confident in your plan: a low risk and high level of peace.
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More columns from Quentin Fottrell:
'I'm a big fan of DIY investing': I'm 64 and moving to the U.S. I have $2.6 million, but no Social Security. Will I be OK?
'I didn't ask a man to rear-end my car': Social Security is replacing my disability benefits. Will the fund run out of money?
'I'm simply exhausted': I'm 55 and have $1.3 million for retirement. Can I retire next year?
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-Quentin Fottrell
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March 25, 2026 09:16 ET (13:16 GMT)
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