DMT Beauty Transformation: Investment Strategies for Women Nearing Retirement
Contributor DMTBeautySpot

Investment Strategies for Women Nearing Retirement

June 08, 2024BruceDayne

retirement investing

Brought to you by CMC Markets:

Women face a unique set of obstacles when it comes to building a secure retirement fund. Factors such as longer lifespans, potential career interruptions for caregiving responsibilities, and a tendency towards more conservative investing can hinder the accumulation of sufficient retirement funds. In fact, research says that women contribute 30% less than men to their retirement accounts.  (1) 

So, as you approach this stage, reassessing your investment plan is the best thing to do. This ensures it aligns with your changing financial requirements. This article outlines essential strategies to help women approaching retirement optimize their investments. Let’s empower you to make informed decisions for a financially secure retirement.  

Investing in ETFs for Diversification  

Exchange-traded funds (ETFs) are investment funds traded on stock exchanges. They work just like individual stocks. They’re designed to track a specific index, sector, commodity, or asset class. What sets ETFs apart is their ability to offer an instant diversified retirement portfolio. By investing in an ETF, you get exposed to a nest egg of assets, including stocks, bonds, or commodities.  

This diversification helps to spread risk, reducing the impact of any single investment’s performance on your overall portfolio. Another advantage of ETFs is their cost-effectiveness. Compared to traditional mutual funds, they often have lower expense ratios, meaning you pay less in fees to the fund manager. This is because ETFs typically track an index passively, requiring less active management.  

For women nearing retirement, ETFs can be a real game-changer. Think of dividend-paying ETFs as a steady stream of “bonus checks” that come in regularly on top of your other retirement income. And if you’re someone who prefers a more hands-off approach, target-date funds can be your investment autopilot. They automatically shift towards more conservative investments as you get closer to retirement. 

Maximize Retirement Contributions 

If your employer offers a retirement plan, especially one with matching contributions, prioritize maximizing your contributions. For those aged 50 or above, take advantage of catch-up contributions permissible in traditional and Roth IRAs, allowing for accelerated savings.  

Remember, time is your ally – even modest, consistent contributions compound substantially over the long term. Research shows that women often have a lower risk profile when it comes to investing. As such, it may be common to be more reserved with your retirement investment. However, if you can add more money to your account, you’re more likely to secure your future. (2) 

As you approach retirement, it’s wise to re-evaluate whether your risk tolerance is appropriate for this stage of your life. Consider working with a financial advisor to determine the optimal investment options based on your individual circumstances. You may find it beneficial to gradually shift your asset allocation to a more conservative balance as retirement nears. 

Build Stability with Bonds  

Bonds and fixed-income investments are often seen as the “anchors” of a retirement portfolio. They’re your financial safety net, providing a steady income stream through regular interest payments. This reliable income can be a lifeline during retirement, offering stability and peace of mind when you’re no longer working. As retirement nears, having that dependable income to cover your living expenses becomes more important than chasing high-risk, high-reward investments. 

There’s a range of bond options to consider with varying levels of risk and potential return. Government bonds are generally considered the safest, while corporate bonds offer higher yields but come with increased risk. Bond funds provide an easy way to diversify your bond holdings across different issuers and maturities. 

By incorporating bonds into your investment strategy, you can effectively reduce the overall volatility of your portfolio. This is crucial when you’re no longer earning a regular paycheck and need your investments to provide consistent income during retirement.  

Consider Income-Generating Investments 

As you move closer to retirement, having a dependable income stream becomes increasingly important. That’s where dividend-paying stocks come into the picture. They not only offer the potential for your investments to grow over time but also reward you with regular payouts. Think of it like getting a “paycheck” from your stocks, adding a comforting layer of stability to your retirement income.  

Another option to explore is real estate investment trusts (REITs). These companies own and operate income-producing real estate, such as office buildings, shopping centers, and apartment complexes. The 25-year average dividend yield on REITs is 9.05%, significantly higher than the 7.97% yield of the S&P 500 in the same period. You can build a bigger retirement portfolio by investing in income-generating fixed-income instruments. (3)  

It’s important to be savvy when considering income-focused investments. While the allure of high returns might be tempting, remember the old saying, “If it sounds too good to be true, it probably is.” Those sky-high yields could mean you’re taking on more risk than you’re comfortable with.  


The investment market as a woman approaches retirement requires a strategic approach. Remember, it’s never too late to fine-tune your investment strategies to achieve a diversified portfolio. Seeking professional guidance from a financial advisor can be invaluable. They’ll help you create a tailor-made plan based on your financial goals and risk tolerance. 


  1. Gender Pay Gap Statistics in 2024: 
  1. How the Gender Balance of Investment Teams Shapes the Risks They Take:
  1. 5 Types of REITs and How to Invest in Them:



Contributor, DMT.NEWS, DMT BeautySpot,

You Might Also Like


DMT BarberShop

DMT BarberShop
Come get the professional touch you deserve!

YouTube Channel

Contact Form