What Investment Strategies Help Preserve Wealth in Retirement?

June 23, 2025

Preserving wealth in retirement can seem complicated, especially with so many new choices and challenges popping up once you stop working. After spending years building your savings, you want your money to last—not just for today, but for every chapter of retirement. This stage is your chance to enjoy the things you’ve worked hard for, yet it also comes with a few new hurdles to consider. Expenses can shift unexpectedly, especially with health care costs on the rise. Prices at the grocery store, at the gas pump, and even for basic services have a way of climbing higher each year, sometimes faster than you planned. The stock market, too, can feel less predictable now that your paycheck isn’t coming in every month.

If you feel overwhelmed by all this, you’re not alone. Many retirees wonder if their savings will be enough or how to keep up with changing expenses. The good news is, there are practical steps you can take to help protect your financial future and stretch your retirement dollars further. Solid wealth preservation strategies for retirees—such as making regular spending reviews, choosing a balanced investment mix, and using smart withdrawal plans—are within your reach, even if you’re not an investment professional.

You don’t need to chase every trend or worry about every headline. By focusing on the habits and retirement investment strategies that fit your life, you can make your money work for you. This guide walks you through real, actionable ways to help preserve your wealth, so you can enjoy retirement with more confidence and control.

Understanding What It Means to Preserve Wealth

When you think about wealth preservation strategies for retirees, it’s easy to focus only on investment returns. But in reality, preserving wealth in retirement means much more than chasing gains in your portfolio. It’s about stretching your savings so they last, keeping risks under control, and building habits that support your lifestyle year after year.

The risks you face in retirement aren’t just about how the stock market performs. Inflation quietly reduces what your money can buy, healthcare costs often rise in unexpected ways, and living longer than you planned means your money has to last longer, too. On top of that, scams and fraud can pose real threats, especially as more financial business is done online or over the phone. In fact, Michael Landsberg stresses that it’s wrong to assume inflation will come down in 2025.

These concerns are real for nearly everyone approaching or already living in retirement. Recent research found that 64% of Americans are more worried about running out of money than they are about dying. Inflation is one of the biggest worries, with more than half of people saying that rising prices make them nervous about their savings lasting. Many are also concerned that Social Security won’t provide enough support or that taxes could take a bigger bite out of their retirement income.

Despite these fears, most people admit they aren’t saving as much for retirement as they would like. Day-to-day living expenses, credit card debt, and housing costs often take priority over retirement saving. This can make the path to long-term financial security feel complicated and sometimes out of reach.

But the foundation of any good wealth preservation strategies starts with the basics: knowing exactly where your money goes. By tracking your spending and matching it up with your income sources—like Social Security, pensions, or withdrawals from retirement accounts—you get a clearer sense of how long your money could last and where you might need to adjust.

With thoughtful retirement income planning, you can make decisions before small issues become big problems. Even modest changes, like reviewing your budget or rethinking your investments, can put you in a better position to handle rising costs, longer lifespans, and unexpected events. Building these habits isn’t just about dollars and cents; it’s about creating a sense of confidence and flexibility for the years ahead.

How You Can Preserve Wealth in Retirement?

There are many ways you can protect your wealth when you’re retired, and it’s important to remember there’s no single formula that works for everyone. The right approach depends on your needs, goals, family situation, and even the surprises life throws your way. What matters is building a plan that supports you now and gives you options for the future.

Some strategies focus on how you invest, others on how you manage your daily money habits, and still others on protecting what you’ve already earned. By mixing and matching these wealth preservation strategies, you can build a plan that fits your personal situation.

Here are some practical considerations to help protect your retirement wealth and keep your financial future steady:

Diversify Your Investments: Spreading your assets across different investment types helps manage risk and smooth out the bumps when the market shifts.
Keep Healthy Financial Habits: A steady routine of budgeting, tracking your spending, and avoiding unnecessary debt keeps you on solid ground.
Build and Maintain Your Emergency Fund: Cash reserves can help you cover unexpected expenses, so you won’t have to sell investments during a downturn.
Managing Retirement Withdrawals: The order and timing of withdrawals from your accounts affect how long your savings will last—and how much you’ll pay in taxes.
Plan for Insurance and Risk Management: Reviewing your insurance coverage each year can protect you from large, unpredictable costs.
Real Estate for Retirement Income: Your home or investment properties can be a steady source of income or a backup plan if your needs change.
Teach Children Financial Responsibility: Passing on your knowledge helps the next generation—and can help protect family wealth.
Plan Business Successions in Advance (For Business Owners): Laying out a clear succession plan helps ensure your business continues to provide value, even after you step back.
Estate Planning: Keeping your will, trusts, and beneficiary forms updated prevents confusion and stress for your loved ones.
Protect Against Fraud and Scams: Staying alert to common scams is essential, especially as more transactions happen online and over the phone.
Managing Healthcare Costs: Reviewing your healthcare plans, saving for out-of-pocket costs, and comparing Medicare options each year can prevent nasty surprises.
Delaying Social Security Benefits: Waiting to claim Social Security, if you can, often means larger monthly checks.
Inflation Protection for Retirees: Considering investments that keep pace with rising prices helps your money go further.
Financial Planning After Retirement: Revisiting your financial plan each year helps you adapt as your needs change.
Tax-Efficient Funds: Choosing investments and withdrawals that minimize taxes lets you keep more of your hard-earned money.
Roth IRA Conversion: Converting traditional retirement funds to Roth accounts can create tax-free income later.
Keep Learning and Stay Involved: Staying curious, reading up on financial news, or joining local retirement groups keeps you informed and ready for what’s ahead.

Let’s take a closer look at each of these strategies to see how they can help you preserve and protect your wealth throughout retirement.

Diversify Your Investments

Diversification for retirees is one of the reliable ways to help protect your wealth during retirement. Rather than putting all your eggs in one basket, you spread your investments across different types of assets—stocks, bonds, real estate, cash, and in some cases, even small business or alternative assets. The reason is simple: markets move up and down at different times, and having a mix of investments can help soften the blow if one area takes a hit.

Let’s say you have $1 million set aside for retirement. Instead of putting the whole amount in the stock market, you might choose to spread it out: $400,000 in stocks, $300,000 in bonds, $200,000 in real estate, and $100,000 in cash. If stocks drop, your bonds and real estate holdings might provide stability, and your cash offers flexibility for unexpected needs. This kind of diversification for retirees is a core part of any solid retirement investment strategy.

But diversification doesn’t stop with the traditional choices. In a recent session with Reuters, Michael Landsberg highlighted an often-overlooked way to diversify your portfolio—by owning foreign currencies. As Landsberg explained, “The dollar is kind of poised to continue to be weak and I think that’s part of the game plan of this administration…that allows you, for example, to own some foreign currencies which you haven’t been able to own again as a diversifier.”

He pointed out that assets like the euro and the Swiss franc have done well in environments where the U.S. dollar loses strength. Landsberg added, “You can make good money or have protected returns by owning some of the currencies now. In the land of ETFs, you can buy a lot of these things very easily.” So, even if you’re not traveling abroad, you can use exchange-traded funds (ETFs) to hold positions in foreign currencies right from your retirement account.

This approach opens the door to broader diversification for retirees. While it used to be common to focus only on the biggest U.S. stocks, Landsberg cautions that “everyone did well even though the majority of stocks didn’t do that great…those seven or eight kind of carried the weight. I think you’re in an environment where they can’t do that anymore.” Now, having a wider mix—including things like foreign currencies—can help protect your retirement savings when the markets get choppy.

Whether you’re new to retirement investing or have managed your own portfolio for years, revisiting your mix of assets and considering less traditional diversifiers can help your money last longer and weather whatever surprises the market brings.

Keep Healthy Financial Habits

Solid financial habits for retirees are one of the powerful ways to help preserve your wealth over time. While it’s easy to focus on investments and returns, the way you manage your everyday spending and decision-making can have just as much impact on your financial security.

Start with a clear budget. List out your income sources—such as Social Security, pension, or retirement withdrawals—and track your regular expenses like groceries, insurance, utilities, and housing. By simply knowing where your money goes, you make it easier to spot places to trim costs or redirect funds to where they matter most.

Small changes can lead to big results. For example, if your monthly expenses are $5,000 and you manage to cut back just $200—maybe by eating out less often, negotiating a better rate on your internet service, or reviewing unused subscriptions—you’re freeing up $2,400 each year. That extra cash can cover a surprise home repair, help pay for new glasses, or grow your emergency fund.

Avoiding new debt is equally important. While it’s tempting to use credit cards for convenience, carrying a balance adds interest charges that can eat into your savings. Instead, focus on paying bills in full when possible and only borrowing when truly necessary. If you already have debt, make a plan to pay it down at a comfortable pace.

Healthy financial habits also include setting aside time to review your budget and financial plan regularly. Some retirees find it helpful to do a monthly check-in or a quarterly review—whatever fits your routine. This helps you catch changes in spending patterns, adjust for price increases, and make informed choices about your future. Building and sticking to healthy financial habits as a retiree isn’t about cutting out everything you enjoy. It’s about finding a balance that lets you cover your needs, enjoy your retirement, and protect your savings for the long haul.

Build and Maintain Your Emergency Fund

An emergency fund for retirees is one of the quiet heroes of wealth preservation. Even after you retire, life can throw a curveball—whether it’s a sudden home repair, an unexpected dental procedure, or a family member needing help. Having cash on hand keeps you from needing to dip into your investments when the market isn’t cooperating, which can help protect your retirement savings in the long run.

How much should you set aside? A common guideline is to keep three to six months’ worth of living expenses in a safe, easily accessible account. For example, if your regular expenses add up to $4,000 a month, it’s smart to keep somewhere between $12,000 and $24,000 in a high-yield savings account or a money market account. This way, you have quick access to funds whenever a surprise comes up.

The key is accessibility. While it’s tempting to put every extra dollar into investments, having cash ready means you won’t need to sell stocks or other assets at a loss just to cover an urgent bill. During a market downturn, this strategy can make a real difference in how long your savings last.

If saving that much at once feels overwhelming, remember you can build your emergency fund gradually. Start by setting aside a small amount each month, and if you get a tax refund or unexpected income, consider directing part of it to your emergency savings. Treat your emergency fund as a financial cushion—a way to give yourself flexibility, no matter what comes your way.

By making your emergency fund a core part of your wealth preservation strategies for retirees, you give yourself room to breathe and make thoughtful choices—even when life is unpredictable.

Managing Retirement Withdrawals

How you handle your retirement withdrawals plays a huge role in helping your savings last as long as you need them. The order and timing of these withdrawals—sometimes called a “withdrawal strategy”—can affect how much you pay in taxes, how your money grows, and whether you’re able to keep up with expenses over time.

A common approach for retirees is to start by drawing from taxable accounts first. This could include brokerage accounts where you’ve already paid taxes on your contributions. By tapping these funds early, you allow your tax-deferred accounts—like traditional IRAs and 401(k)s—to keep growing. Once your taxable accounts are depleted or it makes sense tax-wise, you can begin taking withdrawals from tax-deferred accounts. These withdrawals will be taxed as ordinary income, so it’s important to be mindful of how much you take out each year and which tax bracket you’ll fall into.

Tax-free accounts, such as Roth IRAs, are often saved for last. Since qualified withdrawals from Roth IRAs aren’t taxed, these accounts can be a valuable source of income later in retirement, especially if you expect your tax rate to rise or if you want to leave a legacy for your loved ones.

Timing your Social Security benefits is another important piece of managing retirement withdrawals. If you claim Social Security at your full retirement age (typically 66 or 67), you receive your standard monthly benefit. But if you can afford to wait until age 70, your benefit increases by about 8% for each year you delay past full retirement age. For someone with a $2,000 monthly benefit at age 67, waiting until 70 boosts that payment to $2,480—a difference of $5,760 each year for life. These decisions may seem small at first, but the impact on your total retirement income can be significant. Managing retirement withdrawals thoughtfully—paying attention to tax implications, account balances, and the order you tap into your savings—can help you stretch your nest egg and feel more confident about your financial future. If you’re not sure where to start, consider reviewing your withdrawal plan each year and adjusting as needed to match your lifestyle and goals.

Plan for Insurance and Risk Management

Part of protecting your retirement wealth is making sure you have the right insurance in place—because the unexpected can happen at any time. Retirement risk management goes beyond investments and savings. It’s about reviewing your coverage regularly and making smart decisions that can help shield your assets from life’s surprises.

Start by looking at your health insurance. As you age, medical costs tend to increase, so it’s important to check your Medicare coverage and any supplemental plans each year. This review can help you catch gaps in coverage and potentially save money by switching to a plan that better fits your needs.

Long-term care insurance is another piece to consider. Many retirees may need help with daily activities as they get older, and long-term care coverage can help pay for services like home health aides or assisted living. Without this protection, the cost of long-term care can quickly eat into your retirement savings.

Don’t forget about umbrella insurance—a lesser-known but valuable policy that provides extra liability coverage beyond your standard home and auto insurance. For around $300 a year, you can get $1 million in protection. This coverage can be a financial lifesaver if you’re ever faced with a lawsuit or a claim that exceeds your primary insurance limits. Make it a habit to review all your insurance policies annually. Check that your coverage is up to date with your current needs, and update beneficiaries or coverage limits as your life changes. It’s also a good idea to check in with your financial advisor during these reviews. If your advisor is fee-only, that often means the advice you receive is focused on your interests, not driven by commissions or sales incentives. This partnership can help ensure your wealth preservation strategies for retirees work even harder for you. With a solid insurance plan in place, you can focus more on enjoying retirement and less on worrying about “what if” situations.

Real Estate for Retirement Income

Real estate for retirement income is often overlooked, but it can be a steady and flexible part of your wealth preservation strategy. For many retirees, the family home represents one of the biggest assets you own. As your needs change, your home or other properties can play a new role in supporting your lifestyle.

Downsizing is a popular option. If you sell a $600,000 house and buy a more manageable condo for $350,000, you suddenly have $250,000 in cash you can put to work—whether that means investing for income, building up your emergency fund, or covering healthcare expenses. Besides freeing up money, moving to a smaller place can also lower your monthly bills, like property taxes, utilities, and maintenance.

Another way to generate real estate for retirement income is by renting out part of your property or another investment home. If you rent a spare room or a small apartment for $1,200 a month, that’s an extra $14,400 a year that can go toward your everyday expenses or help you meet other financial goals. Even a seasonal rental can bring in a helpful stream of income during peak months.

Some retirees also consider relocating to areas with a lower cost of living, which can make your retirement savings stretch further. Whether you choose to downsize, rent out a space, or move altogether, real estate can give you flexibility, provide steady income, and add an extra layer of security as you move through retirement.

Including real estate as part of your overall retirement investment strategies can help you protect your wealth, maintain your lifestyle, and stay prepared for whatever comes next.

Teach Children Financial Responsibility

Teaching children financial responsibility is a gift that pays dividends well beyond your own retirement years. When you pass down smart financial habits, you’re not just protecting your wealth—you’re helping to secure your family’s future for generations to come. Children and grandchildren who learn the basics of saving, budgeting, and mindful spending are more likely to grow into adults who manage money wisely and avoid common pitfalls.

You don’t need to make lessons complicated. Simple, hands-on approaches work best. For example, you might offer to match your grandchild’s $10 weekly savings—by the end of the year, they’ll have $520 set aside, and they’ll understand the rewards of patience and sticking to a plan. These little habits can teach the value of delayed gratification, help set early goals, and encourage a positive relationship with money.

Financial responsibility isn’t just about saving, either. Consider talking openly with your family about everyday budgeting, how to use credit cards responsibly, and the importance of living within your means. You might share real stories from your own life about financial choices you’re proud of—or lessons you learned the hard way.

By focusing on financial responsibility for the next generation, you help build a solid foundation that can last long after you’re gone. It’s one of the meaningful ways to extend your wealth preservation strategies for retirees into the future—and help your loved ones thrive no matter what life brings.

Plan Business Successions in Advance (For Business Owners)

If you own a business, planning for succession is a critical part of wealth preservation strategies for retirees. Your business may be one of your valuable assets, and how you transition out of ownership can have a big impact on both your retirement lifestyle and your family’s financial security.

It’s wise to start planning your business succession at least five years before you expect to retire. This gives you plenty of time to explore your options, whether that means handing the reins to a family member, selling to a trusted employee, or finding an outside buyer. Starting early lets you gradually train your successor, share your knowledge, and build their confidence in managing the business on their own.

Early planning also allows you to take steps that can increase your business’s value before you sell or transfer ownership. You might streamline operations, settle outstanding debts, or update legal documents to make your business more attractive to buyers or easier to pass on. All of this helps you protect your retirement wealth and provide for your loved ones.

Don’t forget to involve your family and professional advisors in the conversation. Communicate your goals and timeline clearly, so there are no surprises down the road. Consider working with a fee-only financial advisor or a business succession specialist to help you navigate legal, tax, and financial details—ensuring your interests are front and center.

By planning your business succession well in advance, you’re helping to secure your financial future and giving your business the best chance to thrive for years to come.

Estate Planning

Estate planning in retirement is a key part of protecting your wealth and making sure your wishes are honored. It’s not just about creating a will—it’s about building a complete plan that gives clear instructions for what happens to your assets, your care, and your legacy.

Start by making sure your will reflects your current wishes. This document guides who receives your property and who will help manage your affairs. But estate planning for retirees should also include trusts, which can help your loved ones avoid probate, manage assets, or care for a family member with special needs. If you have a trust, review its terms regularly to make sure it still matches your intentions.

Don’t forget about your beneficiary forms for retirement accounts, life insurance, and other financial assets. These forms often override what’s written in your will, so it’s important to keep them updated—especially after big life changes like marriage, divorce, or the birth of a grandchild. Checking these details every two or three years ensures that your assets go exactly where you want them.

Consider other documents as well, such as a durable power of attorney and healthcare directive, which give someone you trust the authority to make decisions if you can’t. Keeping all these documents current helps prevent confusion, unnecessary costs, or even family disputes during stressful times.

Estate planning isn’t just for the wealthy. No matter your situation, it’s a crucial piece of your wealth preservation strategies for retirees. If you’re unsure where to start, or want to review your plan, a fee-only financial advisor or estate planning attorney can help make sure everything is in order and truly reflects your wishes.

Protect Against Fraud and Scams

Protecting yourself against fraud and scams is more important than ever in retirement. Unfortunately, scammers often target retirees, hoping to catch you off guard with phone calls, emails, or even fake letters that look official. That’s why avoiding fraud in retirement should be a key part of your wealth preservation strategies.

Start by staying cautious with your personal information. Don’t share details like your Social Security number, bank account info, or passwords over the phone or online unless you’re absolutely sure who you’re dealing with. Scammers are good at pretending to be from your bank, Medicare, or even government agencies, so it’s okay to hang up and call back using the official number you have on file.

Keep an eye out for suspicious activity, such as emails asking for urgent payments, requests for wire transfers, or unexpected messages about prizes you didn’t enter to win. If something feels off, trust your gut and double-check before responding.

One of the effective steps you can take to protect your financial security is to freeze your credit with the three major bureaus—Experian, TransUnion, and Equifax. Freezing your credit means no one can open a new account in your name without your approval. This simple action can save you a lot of headaches and help prevent identity theft.

Make it a habit to check your account statements and credit reports regularly. If you notice anything unusual, report it right away. And don’t hesitate to talk to your financial advisor about ways to safeguard your information. Fee-only advisors, in particular, are focused on your interests and can offer up-to-date tips to keep your retirement savings safe.

Managing Healthcare Costs

Managing healthcare costs in retirement is a challenge that catches many people off guard. Even if you’re healthy now, medical expenses can quickly add up—routine check-ups, prescriptions, dental visits, or unexpected treatments. Without a plan, these rising healthcare costs can drain your retirement savings faster than you might expect.

One practical way to get ahead is to use a Health Savings Account (HSA) if you’re eligible before you enroll in Medicare. Contributing $3,500 each year for five years gives you $17,500 set aside for future medical bills—and that’s before counting any investment growth. Money in an HSA can be used tax-free for qualified health expenses, giving you more flexibility and control as costs rise.

Once you reach Medicare age, it’s important to review your Medicare plan and any supplemental insurance each year. Health needs can change, and insurance plans can update their coverage or prices. By comparing your options annually, you might find a plan that better fits your needs or saves you money. Even small adjustments, like switching prescription drug plans or adding dental coverage, can make a real difference over time.

Don’t forget to factor in out-of-pocket costs like deductibles, copays, and services Medicare doesn’t cover—such as hearing aids or vision care. Building these expenses into your retirement income planning helps avoid surprises and gives you more confidence about your long-term financial health.

If you’re not sure where to start, talk with a fee-only financial advisor or a Medicare specialist. They can help you sort through your options and find strategies that align with your personal needs.

Delaying Social Security Benefits

Delaying Social Security benefits is one of the simplest ways to increase your retirement income, and it can make a noticeable difference in your overall wealth preservation strategy. While it’s tempting to start collecting benefits as soon as you’re eligible, holding off even a few years can mean a much larger monthly check—for life.

Let’s say you’re eligible for $2,200 a month at age 67, which is considered a full retirement age for many people. If you can wait until age 70 before claiming benefits, your monthly payment rises to $2,728. That’s more than $500 extra each month, or $6,336 a year. Over the course of a long retirement, those extra dollars really add up.

Why does this happen? Social Security increases your benefit by about 8% for each year you delay after reaching full retirement age, up until age 70. That boost is built into the program and continues for as long as you live—making it one of the effective ways to help your money go further if you have other sources of income to rely on in the meantime.

Of course, this strategy isn’t for everyone. Your health, family situation, and immediate financial needs should all play a role in your decision. Some retirees may need the income right away, while others may have savings or part-time work to help bridge the gap until age 70. But if you can afford to wait, delaying Social Security can give your retirement investment strategies extra strength and help protect your wealth well into the future.

Inflation Protection for Retirees

Inflation protection for retirees is essential for anyone hoping to make their savings last throughout retirement. Even when the rate of inflation seems small, the effect over time can be significant—making everyday costs slowly climb while your dollar doesn’t stretch quite as far. For retirees on a fixed income, that slow increase in prices can quietly eat away at your buying power.

Imagine you’ve set a retirement budget of $50,000 a year. If inflation averages 3% annually, you’ll need $58,000 after just five years to buy the same goods and services. Over a longer retirement, the impact is even greater. This is why building inflation protection into your retirement investment strategies makes such a big difference.

One way to help guard against inflation is by adding Treasury Inflation-Protected Securities (TIPS) to your investment mix. TIPS are government bonds specifically designed to keep up with rising prices, since their value automatically adjusts with inflation. This means your investment helps preserve its real value—even as the cost of living rises.

Dividend-paying stocks are another practical option. Many established companies not only pay dividends regularly, but some increase their payouts over time—helping your income keep pace with expenses. While stocks do come with market risk, owning a mix of investments that includes both income and growth potential can help balance the effects of inflation.

It’s smart to review your portfolio every year and consider whether your current mix of investments is set up to handle inflation over the long haul. A fee-only financial advisor can help you find the right balance for your needs, making sure your wealth preservation strategies for retirees include solid inflation protection. This way, you can enjoy retirement knowing your savings are working to keep up with the world around you.

Financial Planning After Retirement

Financial planning after retirement isn’t something you do just once and forget about. In fact, your retirement years can bring more change and new decisions than you might expect. From shifting markets and evolving tax rules to changes in your health, family situation, or personal goals—your plan needs to keep up with life as it unfolds.

That’s why it pays to make reviewing your financial plan a yearly habit. Set aside time to look at your income, spending, investments, insurance coverage, and estate documents. Ask yourself: Are my sources of retirement income still on track? Do my withdrawal strategies or investment allocations need adjustment? Have there been any changes in laws or tax rates that could affect my finances? These regular check-ins make it easier to catch issues early and adjust your course before they become bigger problems.

Staying informed is part of the process. You don’t need to read every headline, but following reputable financial news or attending a local community seminar can give you a fresh perspective and help you spot new strategies. Sometimes, talking with other retirees about what’s working for them—or sharing questions at a workshop—can spark ideas you hadn’t considered.

Remember, financial planning after retirement should reflect your evolving needs. Maybe you’re traveling more, supporting grandkids, or exploring new hobbies. Maybe health expenses have changed or you want to set aside more for charitable giving. Your plan should move with you, not hold you back.

If you’re unsure about making adjustments, don’t hesitate to reach out to a fee-only financial advisor. They can offer objective advice and help tailor your retirement investment strategies as your life changes. By keeping your financial plan current, you help ensure your retirement savings continue to support the life you want to live—no matter what comes next.

Tax-Efficient Funds

Using tax-efficient funds is a smart way to help your retirement savings last longer. Taxes can eat away at your investment returns if you’re not careful, but with a bit of planning, you can hold on to more of your hard-earned money and make your wealth preservation strategies for retirees work even harder.

Start by looking at the kinds of investments you hold in your taxable accounts. Tax-efficient funds—like certain index funds or municipal bond funds—are designed to generate less taxable income, which means you could end up with a lower tax bill each year. Index funds, for example, tend to buy and sell investments less frequently, resulting in fewer taxable capital gains. Municipal bond funds often produce interest that’s tax-free at the federal level, and sometimes at the state level as well.

Planning the timing and order of your withdrawals is another key piece of tax efficiency. Many retirees use a strategy where they draw from taxable accounts first, then move to tax-deferred accounts like traditional IRAs or 401(k)s, and save tax-free accounts like Roth IRAs for later. This helps you spread out your taxable income and potentially stay in a lower tax bracket for more years.

If you have a year when your income is unusually low—maybe you haven’t started Social Security yet or you have fewer withdrawals than usual—that can be a good time to make a move like converting $30,000 from a traditional IRA to a Roth IRA. You’ll pay taxes on that amount now, but your future withdrawals from the Roth will be tax-free, which is especially valuable if you think your tax rate will go up later.

All these moves can get complicated, so it’s a good idea to talk with a fee-only financial advisor or tax professional. They can help you build tax-efficient retirement investment strategies that fit your personal situation, giving you more confidence that your savings will last throughout retirement.

Roth IRA Conversion

A Roth IRA conversion is a powerful strategy for retirees who want to manage their tax bill over the long run and create more flexibility with their retirement income. When you convert funds from a traditional IRA or 401(k) to a Roth IRA, you pay taxes on the converted amount now—but once it’s in the Roth, your future withdrawals are completely tax-free as long as you follow the rules.

This move can be especially smart during a year when your income is lower than usual. For example, let’s say you convert $30,000 to a Roth IRA during a year when you haven’t yet started taking Social Security or large withdrawals from your other retirement accounts. Because your income is lower, you may fall into a lower tax bracket, so the taxes you pay on the conversion will likely be less than what you might owe in a high-income year later.

Over time, this can make a big difference. Once your money is in the Roth, it can continue to grow tax-free. Later in retirement, when you need to take money out, you won’t pay taxes on those withdrawals—and that can be a huge advantage, especially if tax rates go up in the future. Roth IRAs also aren’t subject to required minimum distributions (RMDs) during your lifetime, which gives you more control over how and when you use those funds.

A Roth IRA conversion can fit well into your overall wealth preservation strategies for retirees, especially when combined with other tax-efficient funds and withdrawal plans. But it’s important to run the numbers before making a move—taxes on conversions can be significant if you’re not careful. Consulting a fee-only financial advisor or tax professional can help you decide how much to convert, when to do it, and how it fits into your bigger retirement investment strategy.

Keep Learning and Stay Involved

One of the most effective wealth preservation strategies for retirees is to keep learning and stay involved with your finances. The financial world doesn’t stand still—tax rules, retirement products, investment options, and even scams are evolving. By staying informed, you put yourself in a better position to adapt to changes and spot new opportunities or avoid risks that might come your way.

You don’t need to know everything about finance to stay informed. Simply making it a habit to read trusted financial publications or newsletters once a month can help you keep up with the latest news. Even a short article about changes in Social Security, tax laws, or Medicare options can alert you to something important you might want to discuss or reconsider.

Consider attending a community seminar or local workshop each year, especially those designed for retirees or people planning for retirement. These events often bring together people with similar questions and concerns, and you may pick up useful tips or learn from the experiences of others in your community.

Don’t hesitate to talk with family or friends about what you’re learning, too. Sometimes just sharing information or hearing what others are doing can spark ideas or offer reassurance that you’re on the right path. Staying connected and curious means you’re more likely to catch important changes early and make choices that support your financial goals.

Staying engaged with your financial plan and continuing to learn is one of the most practical ways to help your retirement investment strategies succeed—giving you more control, confidence, and flexibility throughout retirement.

Mistakes to Watch Out For

Even with solid wealth preservation strategies for retirees in place, a few common mistakes can quietly put your financial security at risk. Being aware of these pitfalls makes it easier to steer clear and protect your retirement savings for the long haul.

Relying too heavily on a single strategy or investment: Putting all your eggs in one basket—whether that’s a single stock, one type of fund, or even just focusing on real estate—can backfire if that area hits a rough patch. Diversification for retirees is key to weathering market ups and downs. By spreading your investments across different assets, you’re more likely to keep your savings growing and better protected.
Forgetting to review and update your plan after big life events: Life changes—like a move, loss of a spouse, new grandchild, or major health shift—can have a real impact on your retirement plan. It’s easy to put off reviewing your finances, but making it a habit to update your plan after big changes helps ensure your goals and strategies still fit your needs. Don’t let your plan gather dust—keep it current so it works for you.
Underestimating your spending, especially healthcare costs: A lot of retirees are surprised by how much they actually spend, particularly on healthcare. Unexpected medical bills, new prescriptions, or increased insurance premiums can add up quickly. Be honest with yourself about your true expenses and build in some cushion for those costs when doing your retirement income planning. This helps your savings last and prevents stressful surprises.
Ignoring inflation and the impact of taxes: Inflation and taxes can quietly erode your purchasing power over time. If your retirement investment strategies don’t account for rising prices or tax changes, you might find your money doesn’t stretch as far as you expected. Make a habit of reviewing your plan each year to consider how inflation and taxes might affect your withdrawals, spending, and overall financial outlook.

By keeping an eye out for these common mistakes, you’ll put yourself in a stronger position to protect your wealth and enjoy a more comfortable, secure retirement.

Final Thoughts

Preserving your wealth in retirement is not about finding a magic solution—it’s about putting together a mix of practical habits and flexible wealth preservation strategies for retirees that can adapt as your life changes. No single approach will fit every situation or every family, and that’s perfectly okay. The most important thing is to stay proactive, stay informed, and be willing to make adjustments when your needs or goals shift.

Checking in on your financial plan regularly, talking things over with your family, and staying engaged with your retirement investment strategies all make a real difference in your sense of security. The more you include your loved ones in important decisions and stay open to learning, the more prepared and confident you’ll feel facing whatever comes your way.

If you’re ready to take your next step, consider connecting with a trusted financial planner—especially one who’s fee-only and focused on your interests—or exploring reputable retirement resources online or in your community. With the right mix of planning and support, you can help protect your wealth and enjoy the retirement you’ve worked so hard to achieve.