Retirement Retirement Planning

The Riskiest Places to Keep Your Retirement Money Right Now, According to Advisors

Going out on the wrong financial limb can be costly during your golden years.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated May 13, 2026

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Saving for retirement often involves taking on some risk. It is tough to get ahead financially unless you are willing to invest in stocks, real estate, or other assets that can sometimes decline in value.

However, most of us want to keep that risk to a minimum. Financial advisors often warn that taking the following risks can be dangerous for your wealth.

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Keeping too much money in one stock

Putting all or even just too much of your money into a single stock often creates enormous risk for an investor.

Single-stock concentration is a way to generate wealth for investors who tolerate the downside risk, according to Vince DeCrow, founder and wealth advisor at RISE Investments in Chicago.

"But it's not best for retirement savings if you're nearing retirement," he said. "Even the most promising companies can experience unforeseen disruptions that can cut the value of their stock in half in the blink of an eye."

Instead, he recommends using alternatives such as bond ladders, diversified value stocks, and diversified dividend stocks for retirement savings.

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Going all in on real estate

Going all in on real estate has similar risks as going all in on one stock, according to Elias Friedman, a certified financial planner and founder and senior wealth advisor at Kadima Wealth in Schaumburg, Illinois.

"Concentration risk can sink your portfolio if there was another event in real estate similar to the 2007-2008 financial crisis," he said.

Friedman notes that real estate also has liquidity risk, because having your money tied up in a property makes it difficult to access cash quickly.

Purchasing variable annuities with high fees

Some people purchase variable annuities because they want the guarantee of steady income along with the chance to capture some of the stock market's upside potential.

However, variable annuities often come with high fees.

Diana Richey is a certified financial planner based in Jackson, Wyoming. She urges clients to separate insurance from investments.

"There are so many investment options that equal or exceed the investment mix that you would get inside a variable annuity," she said.

Blending the investment and insurance aspects into a single product often adds cost and confusion, according to Richey. "I try to keep things simple," she said.

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Keeping too much money "safe" in a checking account

It's natural to shun risk and seek safe places for your money as you age. But avoiding the stock market altogether can be a mistake.

"Most clients need growth, so that points to investing more aggressively," said Catherine Valega, a certified financial planner with Green Bee Advisory in Burlington, Massachusetts.

She recommends investing in tax-efficient mutual funds. Unfortunately, she often sees older folks who take the "safe" road and pay the price.

"Very often, I see older clients who have had their money in cash for way too long, missing out on market growth," she said.

Locking money into illiquid assets

Some retirees keep too much of their money tied up in illiquid assets, according to Flavio Landivar, a certified financial planner with Evensky & Katz/Foldes Wealth Management in Coral Gables, Florida.

This may include assets such as a family-owned business or collectibles, like art and jewelry.

"They may sit on your balance sheet, but if you cannot turn them into liquid investments at some point, then that risk substantially increases," he said.

Putting money into deals that are too good to be true

Sometimes, family members or friends will approach you and offer what they claim is a great investment opportunity.

"Oftentimes these deals will seem almost too good to be true," said Michael Espinosa, a certified financial planner and president of TrueNorth Retire in Salt Lake City. "That's because they almost certainly are."

If someone comes to you promising outsized returns with little to no risk, Espinosa has some advice: "You should run away."

Such ventures are not worth the risk.

"Ponzi schemes and other fraudulent investment activities abound, and they often target retirees," Espinosa said. "So, it's critical that you stay vigilant."

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Chasing collectibles and exotic investments

Retirement is the time when you begin to make withdrawals on your investments. For that reason, you need to allocate money to assets that provide liquidity, stability, and a bit of growth, according to Jing Zheng, a certified financial planner and founder of Neat Financial Planning in Falls Church, Virginia.

"In my opinion, it's risky to put a majority of your assets into collectibles, precious metals such as gold and silver, timeshares, and crypto assets," she said.

Instead, Zheng recommends a balanced portfolio, with a blend of index-based exchange-traded funds (ETFs) and laddered CDs or bonds.

Lower risk by creating a retirement income strategy

Instead of unintentionally creating more risk, craft a retirement strategy that boosts your odds of maintaining or even growing your retirement money.

For example, Richey noted that one of the biggest risks to retirement security comes down to timing. If you retire when markets are up, "it dramatically increases the odds that you'll have enough money to last a lifetime," she said.

On the other hand, if you retire when markets are sinking, you will pull money out of your portfolio while it's down.

"That really hurts the amount of money your portfolio can generate in your later retirement years," Richey said.

With that in mind, it might make sense to delay retirement for a while if the market is down.

"Or if you can pick up some consulting work or part-time work so that you're not relying strictly on retirement savings in market down years, that can make a dramatic difference in your long-term financial stability," Richey said.

If you need more help building a solid retirement savings strategy, consider meeting with a financial advisor or other money professional.

Bottom line

The risks on this list might not be worth taking if you want to boost your odds of maintaining a solid financial foundation during retirement.

Instead, consider seeking out a financial advisor or other money expert who can suggest ways to balance risk with the need to achieve growth. Doing so can help ensure that you avoid wasting your retirement savings.

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