4 Reasons to Keep Investing in Retirement

The landscape of retirement has changed, and your investment strategy should follow suit.

Retirement savings can seem like a pot of gold at the end of your working life. But just because you’ve reached your golden years doesn’t mean you should stop investing. Here are four reasons to keep money in the market long after saying “goodbye” to the daily grind.

1. Lifespan

The average lifespan has increased by about 10 years since 1997. How will you account for the additional time (and expenses) in retirement?

Unless you plan to flip burgers into your 70s, it’s wise to up your investing game. One way to do this is to divide your investments into “buckets” intended for different uses and time periods. The first bucket should hold a few years’ worth of cash for immediate expenses, while the second and third buckets should hold investments that can be cashed out in five to 20 years. This strategy gives you the cash you need in the near-term without depriving you of the market’s long-term trend higher.

2. Inflation

The historical rate of inflation is 3.22% per year. This may not seem like much, but it can seriously limit your purchasing power over time. You can help to combat the impact of inflation on your standard of living by investing in Treasury Inflation-Protected Securities, or TIPS. These low-risk Treasury bonds guarantee a return that rises (or falls) with inflation.

3. Healthcare costs

The cost of healthcare in retirement rose 6% between 2015 and 2016, according to Fidelity, and prices are still increasing. To help offset this, investors should seek out passive income that grows with time.

Investment property is a perfect example. It allows your income in retirement to keep up with rising healthcare costs because you can increase the rent every year. College towns usually boast low property values with higher rental prices to accommodate the seasonal population. Consider moving a portion of your savings into real estate to take advantage of this.

Stethoscope examining money.


4. New opportunities

A retiree who invested $5,000 in Amazon in 1997 would have over $1 million today. Products, technologies, and services that once seemed mythical are staples in today’s market, and the sum of a longer lifespan, inflation, rising costs, and new opportunities calls for aggressive investing, even in retirement.

Traditional wisdom says you should limit your exposure to high-growth stocks in retirement, which is sound advice. But that doesn’t mean you should avoid them entirely. For instance, you might use one of your “buckets” to hold long-term stocks like Amazon, which not only offer growth potential, but can also increase prices in lockstep with inflation.

At the end of the day, what’s most important is that you have enough money to see you through your golden years. Keeping these four things in mind, and structuring your retirement savings accordingly, will go a long way in that regard.

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The Motley Fool has a disclosure policy.

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Drew Limsky

Drew Limsky



Drew Limsky joined Lifestyle Media Group in August 2020 as Editor-in-Chief of South Florida Business & Wealth. His first issue of SFBW, October 2020, heralded a reimagined structure, with new content categories and a slew of fresh visual themes. “As sort of a cross between Forbes and Robb Report, with a dash of GQ and Vogue,” Limsky says, “SFBW reflects South Florida’s increasingly sophisticated and dynamic business and cultural landscape.”

Limsky, an avid traveler, swimmer and film buff who holds a law degree and Ph.D. from New York University, likes to say, “I’m a doctor, but I can’t operate—except on your brand.” He wrote his dissertation on the nonfiction work of Joan Didion. Prior to that, Limsky received his B.A. in English, summa cum laude, from Emory University and earned his M.A. in literature at American University in connection with a Masters Scholar Award fellowship.

Limsky came to SFBW at the apex of a storied career in journalism and publishing that includes six previous lead editorial roles, including for some of the world’s best-known brands. He served as global editor-in-chief of Lexus magazine, founding editor-in-chief of custom lifestyle magazines for Cadillac and Holland America Line, and was the founding editor-in-chief of Modern Luxury Interiors South Florida. He also was the executive editor for B2B magazines for Acura and Honda Financial Services, and he served as travel editor for Conde Nast. Magazines under Limsky’s editorship have garnered more than 75 industry awards.

He has also written for many of the country’s top newspapers and magazines, including The New York Times, Washington Post, Los Angeles Times, Miami Herald, Boston Globe, USA Today, Worth, Robb Report, Afar, Time Out New York, National Geographic Traveler, Men’s Journal, Ritz-Carlton, Elite Traveler, Florida Design, Metropolis and Architectural Digest Mexico. His other clients have included Four Seasons, Acqualina Resort & Residences, Yahoo!, American Airlines, Wynn, Douglas Elliman and Corcoran. As an adjunct assistant professor, Limsky has taught journalism, film and creative writing at the City University of New York, Pace University, American University and other colleges.