Find out the best retirement investments for 2025 in WireDaily's latest guide.
ORLANDO, FL / ACCESS Newswire / April 21, 2025 / WireDaily.com has released a new guide on the best retirement investments for wealth preservation.
The price of gold skyrocketed by over 1,800% between 1971 and 1980. Smart investors who protected their retirement savings with precious metals saw their wealth multiply. Past performance doesn't guarantee future results, but this historical example demonstrates why selecting the best retirement investments is more significant than ever.
Ben S, Senior Writer at WireDaily says, "My years of retirement investment strategy analysis have taught me the value of an integrated approach. Most employers provide 401(k) matching contributions ranging from 3% to 6%, which marks just the beginning of retirement planning. Retirement savers now have numerous options to safeguard their nest egg, from total return portfolios targeting 6-7% average returns to immediate annuities that deliver guaranteed income streams."
The 9 best retirement investments for 2025 can help secure your financial future through steady income and long-term growth opportunities. Let's examine how each option fits into a complete retirement strategy.
Gold IRAs with Augusta Precious Metals
Gold IRAs have become the life-blood strategy for investors who want protection against economic volatility. These specialized self-directed retirement accounts let you hold physical precious metals instead of traditional paper assets. They give you unique advantages in today's uncertain economic climate.
Augusta Precious Metals Gold IRA benefits
Augusta Precious Metals brings several great benefits for retirement investors. Their Gold IRAs give you the same tax advantages as conventional IRAs. Your investments can grow tax-deferred until withdrawal for traditional accounts or provide tax-free qualified distributions for Roth accounts. Gold within these accounts avoids the higher collectibles capital gains tax rate, unlike physical gold held outside an IRA.
Augusta Gold IRAs work well as a hedge against inflation. Gold managed to keep its value during economic uncertainty. The proof lies in gold's impressive 81.65% price increase over the five-year period through April 2024. Gold even outperformed the S&P 500's 71% return during this same timeframe.
Augusta's precious metals lineup has these options:
American Eagle coins in sizes from 0.1 to 1 ounce
Gold bars ranging from 1 to 10 ounces
Silver options including coins, bars, and pre-1965 U.S. coins
Augusta Precious Metals pricing and fees
Augusta keeps a straightforward fee structure, though their minimum investment requirement tops many competitors. Opening an account needs at least $50,000, which creates a barrier for some investors.
Here's the fee breakdown:
One-time setup fee: $50 application fee
Annual custodian fee: $125
Annual storage fee: $100 for pooled storage or $150 for segregated storage
Total first-year costs: $275
Recurring annual costs: $225-$275
These costs seem worth it since Augusta covers shipping and transit insurance on qualifying purchases. More importantly, as your investment grows, these fixed annual fees shrink as a percentage of your holdings-only about 0.45% yearly on the minimum $50,000 investment.
Why Augusta is a top choice for 2025
Augusta stands among 2025's best choices for retirement investments alongside Lear Capital Gold IRA and Goldencrest Metals Precious Metals IRA. Money Magazine named Augusta the "Best Overall Gold IRA Company 2023". Their exceptional 4.8/5 rating on Trustpilot and A+ BBB accreditation back this up.
Transparency makes Augusta special. They show all fees on their website and published a guide about avoiding gold IRA scams. Their steadfast dedication to education shows in their customized service model. Each investor gets a dedicated customer representative and can learn from educational resources led by their Harvard-trained economic analyst.
Augusta's buyback program gives investors extra security, usually at about 5% below retail price. This creates a clear path when you need your retirement funds.
Augusta's detailed service and gold's track record during market downturns make their Gold IRAs a smart way to broaden retirement holdings beyond traditional market-based investments.
Get This Guide To Learn More About Gold IRA Investments
Immediate Annuities for Guaranteed Income
Want guaranteed retirement income you can't outlive? Immediate annuities work just like your own pension plan and give you reliable monthly payments whatever the market does. These insurance products are becoming more popular with retirees who want financial security, and they're worth thinking about as part of your retirement portfolio mix.
Immediate annuities explained
Immediate annuities are simple insurance contracts that turn a lump sum into guaranteed income. You make one payment to an insurance company and start getting regular payments almost right away-usually within 30 days. These products fill in for pensions, which makes them valuable now that company pensions are harder to find.
You can set up your payments in different ways:
Fixed payments that stay the same
Payments that go up by a set percentage each year (usually 1-5%)
Payments that adjust with inflation to keep your buying power
You'll find three main types: Guaranteed Lifetime Income Annuities (steady payments for life), Lifetime Mutual Income Annuities (regular income plus possible dividends), and Guaranteed Period Income Annuities (payments for specific times, like until Social Security kicks in).
Immediate annuities pros and cons
Advantages:
Immediate annuities give you rock-solid income security. Your guaranteed payments last your whole life, so you won't run out of money. They protect you from market ups and downs since your income stays steady no matter what happens in the economy. Plus, they're simple - you don't need to manage anything.
Disadvantages:
But these products have their downsides. You usually can't touch your principal once you buy in, so don't use this money for emergencies. Regular fixed immediate annuities don't keep up with inflation, which means your money might not buy as much later. If you die early, the payments usually stop, and you might get less than you put in.
Insurance companies offer extra features to help with these issues, like coverage for your spouse or guaranteed payment periods. Just know that these extras usually mean smaller monthly payments.
Immediate annuities for safe retirement income
If you're wondering about the safest place to put retirement money, take a look at immediate annuities. The best part? You know exactly what you'll get each month, which makes planning your retirement budget much easier.
The market right now makes this strategy look pretty good. Interest rates are up in 2024, so immediate annuity payouts have improved by a lot. Top insurers now offer fixed annuity rates between 5.6% and 6.8%.
Most money experts say you should put about 25-30% of your retirement savings in immediate annuities. This way, you cover your basic expenses with guaranteed income while keeping other investments free for growth. You might want to mix these annuities with growth investments like precious metals IRAs from Augusta, Lear Capital, or Goldencrest Metals.
Taxes work differently depending on how you fund the annuity. If you use after-tax money, part of each payment comes back to you tax-free. So this gives you a tax edge compared to regular retirement account withdrawals.
Get quotes from several insurance companies and read the fine print before you buy. Note that all guarantees depend on the insurance company's ability to pay claims, so check their financial strength ratings carefully before picking this safe retirement investment.
Bonds and Bond Ladders
Bond investments remain the life-blood of retirement planning as interest rates continue to change in 2025. These investments bring stability during stock market ups and downs. Bonds give you predictable income and protect your portfolio. This makes them vital parts of any solid retirement strategy.
How bonds work in retirement
Bonds let you loan money to organizations. You get regular interest payments in return, plus your initial investment back when the bond matures. Your retirement strategy needs bonds to serve three significant roles: they generate income, provide stability, and broaden your equity investments.
The global bond market is so big it's worth $140.70 trillion - this is a big deal as it means that the $115 trillion global equity market. Retirees can tap into this massive marketplace to create steady income streams once their paychecks stop.
Your portfolio naturally moves toward safer investments like bonds as you get closer to retirement. This helps protect your money while still earning returns that can beat inflation, which usually stays around 2%.
Retirees looking for income should think about these bond types:
U.S. Treasury bonds: The government backs these completely, making them your safest bond option
Corporate bonds: You'll get higher yields but take on more credit risk
Municipal bonds: These might give retirees tax benefits
Bond laddering strategy for 2025
Bond ladders give retirees a smart way to invest in fixed income. They reduce interest rate risk and create steady cash flow - exactly what retirees need.
Smart investors don't put all their money into bonds that mature at once. Instead, they spread investments across different maturity dates. To name just one example, see how $100,000 could create 10 steps of $10,000 each, with bonds maturing year after year. Each time a bond matures, you put that money into a new bond at the end of your ladder.
This approach works well in 2025's interest rate environment. Bond ladders give you steady, predictable income whatever the interest rates do. You get chances to reinvest as bonds mature - if rates go up, you can grab those higher yields. The strategy also makes your portfolio less volatile by spreading money across different maturity dates.
Stick to investment-grade bonds rated A or higher to get the best results. Schwab points out that lower-rated bonds like high-yield options might default more often, which could mess up your retirement income plans.
Check Out the Best Gold IRA Companies of 2025 Here
Risks and returns of retirement bonds
You need to understand bond risks to protect your retirement savings. Interest rates pose the biggest threat - when they rise, existing bond prices drop. This relationship can temporarily lower your portfolio's value, but bonds held until maturity will still pay back their full amount whatever happens with interest rates.
Inflation can eat away at fixed bond payments' buying power over time. There's another reason to be careful - every bond carries some credit risk, which means issuers might not make their payments.
You can reduce these risks by mixing bonds with other retirement investments. Augusta Precious Metals Gold IRA, Lear Capital Gold IRA, and Goldencrest Metals Precious Metals IRA help fight inflation, while bonds keep giving you steady income during rough economic times.
Keep your return expectations realistic. Long-term U.S. Government bonds have earned about 5.1% each year since 1926. That beats cash (3.3%) but lags behind stocks (10%). Bonds make up for this with stability - they're nowhere near as volatile as stocks, which helps cushion market downturns.
The current interest rate environment brings good news for today's retirees. Bond yields look attractive again for retirement portfolios after a decade of rock-bottom rates.
Retirement Income Funds
Retirement income funds are a great option if you want to balance growth and income during retirement. These professional investment solutions provide steady cash flow while protecting your capital-exactly what today's retirees need.
What are retirement income funds?
Retirement income funds (RIFs) are investment products tailored for conservative retirement savers. These funds focus on generating income and stability, unlike traditional growth-focused retirement accounts. They work as mutual funds and invest in large and mid-cap stocks and bonds to create a balance between modest growth and capital protection.
Most retirement income funds work as managed payout funds that give you regular monthly payments without using up your principal. To name just one example, Vanguard Managed Payout Funds schedule automatic monthly distributions each year. The combination of investment and income strategies makes them different from basic systematic withdrawals, which just handle distributions.
Without doubt, these funds give you more flexibility than annuities. You can access your money when needed, unlike immediate annuities that lock up your principal. On top of that, they usually offer better market participation opportunities compared to fixed annuities.
Best retirement income funds for 2025
Several retirement income funds show promising performance for 2025:
T. Rowe Price Retirement Income 2020 (TRLAX): With a 0.52% expense ratio and approximately 50% stocks/50% bonds allocation, this fund has delivered a 6.6% annualized return since mid-2017.
Vanguard Target Retirement 2025 (VTTVX): This fund offers a 2.8% yield with a strategic 50% equity allocation at retirement-slightly higher than the industry average of 44%. The fund gradually moves to more conservative holdings as retirement approaches.
Schwab Monthly Income Funds: Available in three risk profiles-Income Payout (30% stocks/70% bonds), Target Payout, and Flexible Payout (both 50% stocks/50% bonds)-these funds want to achieve annual payouts between 3-5% depending on interest rates.
You might want to combine these funds with physical assets like Augusta Precious Metals Gold IRA, Lear Capital Gold IRA, or Goldencrest Metals Precious Metals IRA to improve protection against market volatility.
Retirement income fund tax considerations
Tax treatment changes based on your account type and how you take distributions. Traditional retirement income fund withdrawals are taxed as ordinary income in the year you take them. Roth versions, however, can give you tax-free qualified distributions.
Your income from these funds might include different tax components: return of principal (potentially tax-free), interest (taxed as ordinary income), dividends, and capital gains. This creates more complex tax situations than annuities, where payouts mix return of capital and interest.
Smart withdrawal timing helps minimize taxes. Use tax-free accounts during high-income years and tap into taxable or tax-deferred accounts during low-income years. This strategy helps keep you in lower tax brackets throughout retirement.
Like other retirement investments, required minimum distributions (RMDs) apply to most retirement income funds. Remember that distributions from managed payout funds might not exactly match your IRA RMD requirements, so you might need extra planning.
Real Estate Investment Trusts (REITs)
Real estate has always been a wealth-building asset. Traditional property ownership brings major hurdles. REITs provide a solution that lets you invest in real estate without landlord headaches-making them a powerful tool in your retirement arsenal.
REITs as a retirement investment
REITs are companies that own, operate, or finance income-producing real estate of all types. The law requires them to distribute 90% of their taxable income to shareholders as dividends. This creates substantial dividend yields that typically surpass average dividend-paying stocks (4.16% versus 1.97% for the S&P 500 index in 2019).
Long-term performance shows the true wealth-building potential. REITs have outperformed stocks consistently. They've delivered an impressive 14.1% average annual total return since 1994. REITs' total returns have come half from dividends, while the S&P 500 shows less than one-fourth.
Your retirement portfolios can benefit from REITs in several ways:
They create steady income through dividends
They protect against inflation as property values and rents rise with prices
They boost diversification with low correlation to other assets (ranging from -0.28 to 0.76)
REITs vs. rental property
Direct property ownership demands substantial capital, ongoing maintenance, and management duties. REITs offer a hands-off approach to real estate investing. A house needs regular mortgage payments, taxes, insurance, and maintenance costs. REITs generate continuing income from commercial property rents.
Liquidity shows a clear difference. Physical property sales can drag on for months. You can buy or sell publicly traded REITs almost instantly. The accessibility extends to entry costs too. REIT investments can start with just a few dollars, unlike the huge down payments needed for rental properties.
REIT liquidity and income potential
Major exchanges trade global REIT market shares readily. This liquidity becomes a great way to get quick access to funds during retirement when unexpected expenses arise.
REITs work with other retirement investments to create balanced portfolios. Combined with physical assets like Augusta Precious Metals Gold IRA, Lear Capital Gold IRA, or Goldencrest Metals Precious Metals IRA, they create a comprehensive retirement planning approach.
Financial advisors suggest a 5% to 15% portfolio allocation to real estate. A REIT's management team, debt levels, and dividend history need careful review to find options that line up with your retirement goals.
Total Return Portfolios
Financial experts used to tell retirees to preserve their capital and live off interest or dividends. Now, many experts promote a more detailed approach. Total return portfolios have become a popular retirement investment strategy that balances multiple goals and adapts to market conditions.
What is a total return portfolio?
A total return portfolio looks at all sources of investment growth instead of just focusing on income generation. The strategy combines interest, capital gains, dividends, and distributions to maximize overall returns. Vanguard points out that "Moving from an income or 'yield' focus to a total-return approach may be the better solution" in today's investment world.
Most strategies focus on specific return components. Total return investing takes a different path by finding the right balance among all potential growth sources. This approach reviews investments based on their full contribution to portfolio value, not just how much income they generate.
Total return vs. income-only strategies
The biggest difference between these approaches shows up in cash flow generation. Income-only investors stick to dividends and interest without touching their principal. Total return investors can tap into their capital when it makes sense.
This flexibility brings several key benefits:
Better diversification in multiple asset classes, including growth-oriented investments
Better tax efficiency since capital gains often have lower tax rates than income
More reliable income streams because investors can choose which assets to use for distributions
Total return investing values income-producing assets just as much. The strategy simply puts them into a larger investment picture.
How to structure a total return portfolio in 2025
The economic outlook for 2025 suggests your total return portfolio should meet current income needs and long-term growth goals. Your first step is setting a target withdrawal rate-usually around 4% of your portfolio value each year.
Next, create a diverse mix of stocks, bonds, and alternative investments. The best results often come from adding inflation hedges like Augusta Precious Metals Gold IRA, Lear Capital Gold IRA, or Goldencrest Metals Precious Metals IRA along with traditional market investments.
Regular portfolio rebalancing helps maintain target allocations and can create extra income through selling appreciated assets. This systematic approach captures gains while keeping your investment strategy in line with retirement goals.
Dividend Income Funds
Compound dividends have built wealth across generations of investors. Dividend income funds help control this wealth-building potential. These funds balance current income with future growth and work great for retirees who need steady cash flow without giving up long-term returns.
How dividend income funds work
Dividend income funds invest in stocks that pay dividends. Shareholders get income from the dividends these funds collect from their holdings. Investors receive cash payments every quarter. They can use this money to boost retirement income or buy more shares.
These funds come in two main types:
High-yield dividend funds aim to maximize current income, usually paying 5% or more
Dividend growth funds target companies that raise dividends regularly, which helps fight inflation and grows value over time
Each strategy comes with trade-offs. High-yield funds give you more income right now but might grow slower. Dividend growth funds create rising income streams that help your money keep its buying power through retirement.
Best dividend income funds for retirees
Several dividend funds look promising for 2025:
Vanguard High Dividend Yield Admiral Shares (VHYAX) follows the FTSE High Dividend Yield Index with strong 4/5 star ratings across 5-year, 10-year, and overall periods
First Trust Morningstar Dividend Leaders Index ETF pays 4.4% and invests mainly in healthcare, financial services, and consumer staples
Vanguard Dividend Appreciation Index Fund Admiral Shares (VDADX) picks companies that grow their dividends consistently
You might want to mix these funds with Augusta Precious Metals Gold IRA, Lear Capital Gold IRA, or Goldencrest Metals Precious Metals IRA to guard against market swings.
Dividend income fund tax efficiency
Tax rules change based on your account type and how you receive distributions. Qualified dividends in taxable accounts usually get better tax rates - between 0-20% depending on what you earn. These rates beat the regular income tax rates that apply to bond interest.
ETF versions of dividend funds work best for tax savings. They pass on capital gains less often than mutual funds, which means fewer taxes. Dividend growth strategies can also lead to better tax results than high-yield approaches since fewer dividend payments mean fewer taxable events.
Variable Annuities with Lifetime Income Riders
Variable annuities blend investment chances and insurance protection in a way other retirement vehicles can't match. My extensive research into these complex products will help you decide if they fit your retirement strategy.
Understanding variable annuities
Variable annuities work as contracts between you and insurance companies. They let your money grow tax-deferred while you invest through subaccounts, usually mutual funds. Your annuity's value moves up or down with your investments. This feature sets them apart from fixed annuities, which guarantee returns whatever the market does.
These products stand out because they combine growth potential with protective features. You can pick investments that match your risk comfort level and still get insurance benefits like death protection.
Pros and cons of income riders
Income riders, also called guaranteed lifetime withdrawal benefits (GLWBs), have grown more popular as add-ons to variable annuities. These optional features guarantee you lifetime income whatever happens in the markets.
Benefits:
Guaranteed income for life, even if account value depletes
Protection against market downturns
Access to remaining account value, unlike annuitization
Drawbacks:
Extra fees, usually 1% yearly on top of other annuity costs
Not ideal for immediate income needs
Better suited for younger pre-retirees
High overall expenses, ranging from 3-8% without surrender charges
Are variable annuities worth it in 2025?
Today's market conditions make variable annuities with income riders attractive to risk-tolerant investors who've maxed out other retirement accounts. Keep in mind that 88% of annuity owners believe retirees should have products that guarantee lifetime income in their portfolio.
You might want to balance variable annuities with Augusta Precious Metals Gold IRA, Lear Capital Gold IRA, or Goldencrest Metals Precious Metals IRA to diversify properly. This strategy helps protect against market swings and inflation.
Closed-End Funds for Savvy Investors
Closed-end funds have existed since the early 1800s, yet many retirement investors looking for higher yields still don't know much about them. Your retirement portfolio might benefit from these investment vehicles that can deliver impressive income.
What are closed-end funds?
Closed-end funds (CEFs) operate as investment companies that release a fixed number of shares through an original public offering (IPO). These funds trade like stocks on exchanges, and their prices depend on supply and demand instead of net asset value (NAV). A key difference from mutual funds and ETFs emerges from this structure - CEFs often sell at prices above or below their underlying assets' value.
The "closed" structure brings several advantages. Fund managers don't worry about redemption pressures, which lets them keep portfolios fully invested and follow longer-term strategies. This stability also means CEFs can invest in less liquid markets that aren't available through other investment options.
Closed-end fund income strategies
CEFs create compelling income opportunities for retirement-focused investors. The law requires many CEFs to give shareholders at least 90% of their income. This requirement often leads to yields between 8-10%.
CEFs typically generate income through:
Regular distributions from underlying investments
Using borrowed money at short-term rates to invest in higher-yielding assets
Entry into specialized markets with higher income potential
Risks and rewards of closed-end funds
CEFs' prices can swing more wildly than their NAV changes. Most funds use borrowed money-usually capped at 33%-which makes both gains and losses bigger. The good news is that CEF discounts can give you chances to buy assets below their real value.
A balanced retirement plan might combine CEFs with inflation protection like Augusta Precious Metals Gold IRA, Lear Capital Gold IRA, or Goldencrest Metals Precious Metals IRA. This mix helps create steady income from CEFs while precious metals protect your wealth during economic uncertainty.
Get This Guide to Learn More About Gold IRA Investments for Retirement
Conclusion
My analysis of retirement investment options for 2025 shows that a mix of safe and growth-oriented investments leads to successful retirement planning. Your savings stay protected when you spread assets across multiple vehicles, which also creates reliable income streams.
Gold IRAs from trusted providers like Augusta Precious Metals, Lear Capital, and Goldencrest Metals play a vital role in any portfolio. These investments have proven their worth during economic uncertainty and serve as effective inflation hedges. On top of that, immediate annuities and bond ladders generate steady income, while dividend funds and REITs offer both growth potential and regular cash flow.
The 2025 market conditions create unique opportunities for retirement investors. Bond and annuity returns benefit from higher interest rates, and economic uncertainty makes precious metals more attractive. Building a retirement portfolio that combines these elements based on your specific needs and risk tolerance makes perfect sense.
Your retirement timeline and income needs determine the right investment mix. A 60-year-old retiree might lean towards immediate annuities and bonds, while someone five years from retirement could allocate more to dividend funds and REITs. The secret lies in striking the right balance - enough guaranteed income to cover basic expenses while maintaining growth potential to curb inflation.
Smart retirement planning begins when you understand your options and make informed decisions. Each investment type deserves careful review to ensure it aligns with your retirement goals and risk tolerance. A combination of multiple approaches creates lasting financial security in retirement.
FAQs
Q1. What are some of the safest retirement investments with good returns? Some of the safest retirement investments that offer good returns include high-yield savings accounts, Treasury Inflation-Protected Securities (TIPS), and certain bond funds. Gold IRAs, like those offered by Augusta Precious Metals, can also provide a hedge against inflation and economic uncertainty while potentially offering attractive returns.
Q2. How much should I aim to save for retirement? The amount you need to save for retirement depends on your desired lifestyle and expected expenses. A general rule of thumb is to aim for savings that can provide about 80% of your pre-retirement income. Some financial experts suggest having 25 times your desired annual retirement income saved up.
Q3. What types of investments are recommended for a 5-year time horizon? For a 5-year investment horizon, a mix of fixed deposits, debt funds, and balanced funds can be suitable. Retirement income funds and dividend income funds may also be good options, offering a balance of growth potential and regular income.
Q4. How can I protect my retirement savings from market volatility? To protect your retirement savings from market volatility, consider diversifying your portfolio across different asset classes. This could include a mix of stocks, bonds, real estate investment trusts (REITs), and precious metals. Additionally, maintaining a long-term perspective and avoiding panic selling during market downturns is crucial.
Q5. Are annuities a good option for retirement income? Annuities can be a good option for retirement income, especially for those seeking guaranteed lifetime payments. Immediate annuities provide a steady income stream, while variable annuities with income riders offer potential for growth along with income guarantees. However, it's important to carefully consider the fees and terms associated with annuities before investing.
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