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At this stage of life, you don\u2019t want to gamble the $100,000 you spent decades building. But you also know it\u2019s quietly losing ground to inflation just sitting there. So you do nothing, only to realize that this decision also carries its own set of risks. Here\u2019s where you could put that money to work without taking unnecessary risk.<\/p>\n<\/p>\n
Why Cash Alone Is the Quiet Risk<\/p>\n
Even with a modest 2.5% annual inflation rate<\/a>, $100,000 today would still need to grow to $128,008 over the next decade just to maintain the same purchasing power. 1<\/a> \u00a0And that\u2019s without any major market disruptions.\u00a0<\/p>\n The hardest part is that you rarely notice it happening. Years later, you simply realize your money doesn\u2019t buy what it once did. Cash may feel safe, but inflation can chip away quietly at its value.<\/p>\n You may think you have to sacrifice income for safety. But you don\u2019t have to choose one or the other. Different portions of your savings can serve different purposes.<\/p>\n Next Steps: Managing your investments can be overwhelming. We recommend speaking with a financial advisor. This tool will match you with vetted advisors who serve your area.<\/p>\n Here’s how it works:<\/p>\n Answer a few easy questions<\/a>, so we can find a match.Our tool matches you with vetted fiduciary advisors who can help you on the path toward achieving your financial goals. It only takes a few minutes.Check out the advisors’ profiles, have an introductory call on the phone or introduction in person, and choose who to work with.<\/p>\n Enter your ZIP code to find your matches:<\/p>\n Find Your Advisor<\/p>\n Here\u2019s Where I\u2019d Put $100,000<\/p>\n I\u2019d keep one portion in cash, a high-yield savings account or a money market fund for emergency expenses<\/a> and money I\u2019ll need in the near future. The goal is stability and easy access, not growth.<\/p>\n Another portion would go toward income-producing investments that pay interest or dividends<\/a>. This can generally include Treasury bonds, certificates of deposit (CDs)<\/a>, dividend-paying stocks and Treasury Inflation-Protected Securities (TIPS)<\/a>, which pay interest and adjust their principal value with inflation. The goal is to generate income rather than maximize long-term growth.<\/p>\n The remaining portion would stay invested for long-term growth. Broadly diversified stock funds or real estate investment trusts (REITs) are common choices here. Because this money won\u2019t be needed right away, it has more time to recover from market swings and potentially outpace inflation.<\/p>\n A financial advisor<\/a> can help you decide on the right mix of cash, income and growth for your retirement. <\/p>\n These Mistakes Can Sink Your Retirement Investments Chasing yield and concentrating too much money in a single investment or asset class are two mistakes that can derail a retirement portfolio. Both may look reasonable at first, but each can expose your savings to risks that are harder to recover from once you\u2019re no longer earning a paycheck.<\/p>\n One way retirees chase yield is by buying investments that promise unusually high income. Junk bonds<\/a> are one example. They pay more than investment-grade alternatives, but that extra yield reflects higher credit risk. During an economic downturn, these bonds could lose value quickly and issuers are more likely to default, making the additional income less attractive than it first appears.<\/p>\n The same risk can show up in other income-focused products. Variable annuities<\/a> may seem appealing because of their income guarantees, but high fees, complex features and surrender charges could lock up your money for years. This, in turn, may outweigh those benefits, particularly if you already have a diversified portfolio.<\/p>\n Liquidity is another risk to keep an eye on. Illiquid investments, including private placements, non-traded REITs<\/a> and certain alternative funds, often promise higher returns in exchange for limited access to your money. If your income needs or financial circumstances change, selling those investments may be difficult.<\/p>\n Finally, be careful not to let too much money accumulate in a single stock, sector or asset class. When too much of your portfolio depends on one investment, a single downturn may have an outsized impact on your retirement savings. Diversification<\/a> cannot eliminate investment risk, but it can reduce the impact of any one investment on your overall portfolio.<\/p>\n![\"Rather](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/07\/Jacob-Wackerhausen-1.png\")
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