As retirement approaches, many people shift their focus from accumulation to preservation. But growth and protection are not mutually exclusive. With the right strategy, it is possible to continue building wealth while reducing unnecessary risk. Planning ahead also allows you to position assets in ways that support your long-term goals, including the transfer of wealth to the next generation.
Here are several approaches that combine smart investment thinking with legal tools designed to help protect what you have worked hard to build.
Adjusting Your Investment Strategy
Reducing Volatility Without Stopping Growth
It is common for investors in their 50s and 60s to reduce exposure to volatile equities and shift toward more stable, income-producing assets. That does not mean abandoning growth entirely. In fact, many retirees now face multi-decade retirements and must plan for 20 to 30 years of expenses. A portion of your portfolio may still need to be allocated toward growth-oriented investments to keep pace with inflation.
Index funds, dividend-paying stocks, and diversified exchange-traded funds (ETFs) may continue to play a role. Bonds and bond funds can add stability, particularly when interest rates are favorable. Alternative assets,such as real estate or private lending, may also serve as useful tools when managed carefully.
Maintaining Liquidity for the Right Opportunities
Keeping Cash on Hand for Investment Property or Private Deals
Having cash available during retirement is not just about covering emergencies. It also allows you to take advantage of opportunities that may not fit neatly into a traditional investment account.
For example, purchasing an investment property with cash can offer both income and asset appreciation, without the complications of financing later in life. A paid-off property can generate rental income, offer tax advantages, and serve as a tangible store of value. In a competitive real estate market, keep in mind that many folks need to sell their house quickly for a cash offer, since cash buyers often secure better terms and faster closings.
Private business investments, bridge loans, or short-term capital placements may also come up through your professional network. Without accessible funds, these opportunities are easy to miss. Having a portion of your wealth in a liquid form (whether in a high-yield savings account, money market fund, or short-term Treasury ladder) can position you to act quickly.
The Role of an Estate Planning Attorney in Retirement Planning
Aligning Investments With Long-Term Intentions
An estate planning attorney is not a replacement for a financial advisor, but they do bring a different lens to wealth management. Where an advisor may focus on returns and diversification, an estate planning lawyer focuses on ownership, control, and transfer.
For example, an attorney can help you determine whether to place rental properties into a limited liability company (LLC) or trust to reduce liability or streamline inheritance. They may recommend titling investment accounts in a way that supports probate avoidance, or drafting documents to provide for incapacity and medical decision-making in case of illness.
Trust structures can also support asset protection. In some cases, an irrevocable trust may preserve access to long-term care benefits while shielding key assets from creditors or Medicaid recovery claims.
Scenario: Repositioning Assets Ahead of Retirement
Consider a couple in their early 60s. They own a primary residence, two rental properties, and a sizable investment account. Their children are financially independent, and the couple plans to retire within five years.
Working with their advisor and estate attorney, they choose to sell one of the rental properties while the real estate market is still favorable. The proceeds are divided: a portion is placed into a diversified portfolio for income, and the remainder is held in cash to pursue a future investment if the right opportunity arises.
They also establish the documentation for a trust, transferring the remaining property and financial accounts into the trust. This eliminates the need for probate and allows for continuity if either spouse becomes incapacitated. Their estate documents are updated to reflect current wishes, and a tax professional is consulted to address the capital gains implications of the recent sale.
By acting before retirement, they avoid last-minute decisions and leave their financial house in order.
Planning for Taxes, Healthcare, and Transfer of Wealth
Reducing Future Burdens on Your Family
Estate planning during your working years is often about asset growth. Near retirement, the focus shifts toward preservation and clarity. Questions like who will manage your affairs if you become ill, how your assets will be passed down, and whether your estate will face unnecessary taxes become more pressing.
Working with an estate planning attorney allows you to document these decisions and align your accounts, property, and beneficiary designations accordingly. When these tools are coordinated with your investment strategy, they create a more complete picture that will grow with you.
Invest With Intelligence in Your Later Years
Smart investing near retirement is about more than returns. It is about flexibility, protection, and planning for the long view. Keeping a portion of your assets liquid may allow you to take advantage of strategic opportunities, whether that means acquiring real estate, entering a private deal, or simply supporting a lifestyle change.
At the same time, protecting what you have built requires legal infrastructure: trusts, powers of attorney, and carefully considered ownership structures. Estate planning is not just about death. It is about creating a financial and legal environment where your money continues to work, even if your needs or abilities shift.