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A comfortable home and a healthy nest egg are crucial for ensuring financial security in retirement. With $143,000 in cash, it’s important to avoid letting it sit idle, as inflation and missed opportunities could erode its value.
But what should you do with that money? As a retiree, you must be cautious with your investments. However, being too conservative could also hinder growth, as $143K isn’t a ton of money. Fortunately, if you already own a home, you at least know you’ve got an asset to fall back on if needed.
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Here are some things to consider before you invest that cash.
Is it a good time to start investing?
The U.S. is undergoing a shift in leadership, disrupting the status quo with significant policy changes. .At the same time, rising international tensions have increased the risk of global conflict. As such, the stock market may be more volatile than ever in the coming years.
With global conflict and political change increasing market uncertainty, investing can feel risky. But avoiding investments altogether carries its own risk—your money could lose value over time.
A balanced approach is key: mix higher-return equities with safer assets like bonds. A common guideline is subtracting your age from 110 to determine your equity allocation. For example, at 66, you might invest 44% in stocks and 56% in bonds.
This strategy helps protect your portfolio during downturns, especially if you hold some cash. For retirees, minimizing losses and reducing market exposure is essential to preserving income.
If you’re looking for other options to fund your retirement and preserve your wealth, you should consider investing directly in gold.
Historically, gold has served as a hedge against inflation and market volatility. Many investors turn to “safe haven” assets like gold during economic and geopolitical instability to preserve their wealth.
Current market conditions have helped propel the price of gold to record levels with the precious metal recently hitting $3,500 as of April 2025.
There are lots of gold assets to choose from, including gold bars, coins and gold stocks.
But right now, opening a gold IRA could be particularly practical as part of your long-term strategy. You can combine the tax advantages of an IRA account with the recession-resistant nature of gold, with the help of companies like Thor Metals.
A gold IRA lets you diversify with a time-tested asset known for holding — and often gaining — value when markets are down. Unlike stocks or bonds, gold isn’t tied to any government or economy, making it a powerful hedge against inflation, currency drops and global instability.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals with qualifying purchases.
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How best to invest the money
Once you’ve figured out your ideal asset allocation, the next step is deciding what to invest in. A solid starting point for domestic equities is an ETF that tracks the S&P 500. These funds offer broad exposure to 500 of the largest U.S. companies, historically averaging around 10% annual returns. They’re low-cost, not actively managed, and provide instant diversification.
To invest in ETFs, you could start with a smaller amount and work up from there. One way that might help is by automatically investing your spare change with Acorns.
The app automatically rounds up your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio. This means that every transaction — from your morning coffee to grocery shopping — contributes to building your savings, or investing in ETFs.
As you continue your investment journey, make sure you have a financial cushion. Setting aside a few months of living expenses in a high-yield savings account, helps to grow your wealth and ensures quick access to cash.
Such accounts offer interest rates that are often 10 to 12 times higher than the national average for traditional savings accounts, which currently stands at around 0.41%. Unfortunately, over 82% of Americans aren’t using such high-yield savings accounts — leaving money on the table, according to CNBC Select. So, it’s important to shop around and compare rates.
You can check out the Moneywise list of the Best High Yield Savings Accounts of 2025 to find some savvy savings options that can earn you more than the national average of 0.4% APY.
A certificate of deposit (CD) is another helpful way of growing your savings. A CD is a low-risk savings account that offers a fixed interest rate for a specified period. It’s possible to earn over ten times the average 0.41% return you’d get from a standard savings account.
With SavingsAccounts.com, you can shop and compare top certificates of deposit rates from various banks nationwide.
Their extensive database shows the most competitive rates, with daily rate updates and personalized recommendations based on your risk preferences and time horizon, so you can find the right CD to meet your investment goals.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
