Wealth Management for Retirees

Wealth in retirement is more than a number in an account—it’s the foundation that supports your lifestyle, goals and peace of mind throughout your later years. Whether you are transitioning to retirement or already retired, having a thoughtful approach to investing and managing your assets can help you adapt to changing needs and enjoy the financial freedom you’ve worked hard for. With a disciplined financial plan and a clear view of your financial future, your hard-earned wealth becomes a tool that helps you focus on what matters most—today and in the years ahead.

This article discusses key wealth management considerations that Fisher Investments believes retirees or near-retirees should understand to help them feel confident about their financial futures.

Managing Financial Risks and Challenges when Retiring

Retirement is often the ultimate financial goal for most working adults, but retirees understand that retirement isn’t just a single event—it’s a long transition that requires thoughtful planning and ongoing assessment. One of the most common concerns retirees have when developing a wealth management plan is ensuring their savings last through their lifetime. Without a clear plan, however, retirement can be more stressful than many envision. Because retirement often spans multiple decades (or longer), a financial plan must account for inflation, unexpected expenses and rising health care costs—all of which can have meaningful consequences for retirees’ financial security.

To address these challenges, it’s helpful to base a retirement plan on realistic assumptions about longevity, spending needs and—as we’ll discuss in the next section—potential investment returns. While some retirees may reduce spending on categories such as housing as they age, they may increase spending in more discretionary areas including hobbies, travel and gift giving. In some cases, retirees spend more in retirement than pre-retirement—particularly true when it comes to healthcare expenses.

Many retirees underestimate how long they’ll live, fail to account for younger spouses when considering their financial time horizon or don’t anticipate rising medical costs as they age. That’s why a regularly monitored investment strategy—one that adapts for changing conditions—can help retirees manage common financial-related retirement risks.

Investing Strategies for Retirees

Traditional financial advice recommends abruptly changing your investment strategy when you retire—prioritizing income and asset preservation over growth. While this approach may be appropriate in select circumstances, we believe most retirees need more dynamic advice.

As discussed, retirement expenses are frequently higher than expected, and many retirees underestimate the level of growth needed to offset inflation, rising healthcare costs and other long-term risks. Investing too conservatively can increase the risk of falling short of financial goals.

To support long-term growth needs, retirees may consider allocating a higher percentage of their assets to a well-diversified portfolio of stocks. Historically, stocks have provided superior long-term, inflation-adjusted returns compared to other asset classes such as bonds and cash. While the volatility associated with stocks can feel concerning to retirees—especially when drawing income from their portfolios—most stock market declines have been temporary. Therefore, the risk typically isn’t the volatility itself, but in emotional reactions to short-term market movements.

Ultimately, managing an investment strategy in retirement isn’t about avoiding risk altogether, but about helping to ensure your wealth management plan balances investment-related risks with the risk of not achieving your financial goals. These risks change over time, so ongoing monitoring and adjustments can help retirees feel confident about their financial circumstances throughout their retirement journey.

Creating a Personalized Retirement Income Plan

One of the reasons some wealth management professionals suggest taking a more conservative investment approach in retirement is to focus on income generation. Assets such as bonds, money-market securities and certain high-dividend yielding stocks typically provide more income than the broader stock market. However, we believe the lure of “higher income” can create a false sense of security, particularly when broader market risks and long-term growth needs are overlooked.

An income-focused strategy often underemphasizes important investment risks—for example, bonds can still default and dividends aren’t guaranteed—and can limit growth potential.  Bonds, money-market securities and high-dividend paying stocks can be part of a well-diversified investment strategy—depending on a retiree’s goals and the prevailing market environment—but over-emphasizing income can come at a cost.

That’s why we believe retirees should focus on total return—income plus capital appreciation—and employ a “homegrown dividend” approach to generating income. This approach involves selectively selling assets to supplement portfolio income to meet your spending needs. Depending on the account type and a retiree’s tax situation, a homegrown dividend approach can be more tax-efficient than a traditional income strategy while also satisfying a retiree’s growth needs.

Estate Planning and Wealth Preservation for Retirees

Many retirees focus on income and lifestyle in retirement while managing their wealth, but if you’ve accumulated enough wealth to retire, it’s also worth considering legacy planning. While the specifics of estate planning vary by individual circumstances, a well-structured estate plan can help ensure assets are transferred efficiently and according to a retiree’s wishes.

Wills help clarify how assets should be distributed to heirs and can reduce uncertainty or potential delays. However, just having a will may not be enough in some circumstances. Trusts are often used to provide greater control over asset dispersals by avoiding probate—a time-consuming and costly process—and can even be an effective way to reduce estate taxes. For more information, you can read our article on wills and trusts.   

Effective estate plans extend beyond ensuring assets are transferred to the right people. They seek to optimize tax efficiencies in federal, state and local tax codes, and establish financial and medical power of attorneys under pre-defined conditions. If a retiree’s financial circumstances permit, strategies such as gift giving—to heirs and/or to charity—can help reduce the size of a taxable estate and save retirees and their heirs significant sums.

Like a good wealth management plan, however, estate plans are not static. Changes in tax law, personal circumstances and market conditions can happen quickly. Once a retiree has an established estate plan, it’s important to review that plan regularly with qualified financial and legal professionals to help ensure it continues to support a retiree’s broader wealth management strategy.

Choosing the Best Wealth Management Professional for Your Situation

The considerations we’ve discussed so far are just some of the variables retirees need to consider when developing a long-term financial plan. That’s why many retirees seek guidance from financial professionals to help them on their retirement journey. But it’s worth remembering that not all financial advice is created equal, and not all financial professionals operate the same way.

One key distinction retirees should consider when choosing the best wealth management team for their situation is whether their financial professional is a broker-dealer or a financial adviser. Broker-dealers primarily buy and sell securities, typically earning commissions or markups—including on proprietary financial products. As the regulatory landscape has evolved in recent years, broker-dealers are held to a higher standard of care than in the past. Broker-dealers, who previously were only required to recommend investments that were “suitable” for a client, must now provide recommendations they believe are in a client’s best interest. However, this standard of care only applies at the time of the recommendation.

By contrast, investments advisers have long been held to a fiduciary standard, which is the highest legal standard of care. Fiduciary investment advisers provide ongoing guidance and financial advice and their fiduciary duty legally requires them to always uphold their fiduciary duty. This means investment advisers act in the interests of clients for the duration of the relationship, not just at the time of an investment recommendation. Unless advisers are dual-registered as broker-dealers, they also don’t typically custody assets and aren’t incentivized to sell any proprietary products. The higher legal accountability and the potential for fewer conflict of interest are why it may benefit retirees to choose fiduciary financial advisers. For more on the differences between fiduciary investment advisers and other financial professionals, please visit our fiduciary-focused website.

Characteristics of the Best Financial Advisers

If you’re retired or approaching retirement and have made the decision to hire a financial adviser, how do you know which one is best for your situation? The adviser you choose should provide you with more than just investment recommendations—they should deliver a comprehensive approach to wealth management with personalized investment strategies and a long-term perspective designed to help preserve and grow your wealth through evolving market conditions. Retirees often require a holistic approach to wealth management that combines portfolio management, financial planning, estate planning, income strategies, tax considerations and more. That’s why some of the best advisers take the time to understand their clients’ unique circumstances and financial priorities. We believe it is prudent to generally avoid advisers that offer one-size-fits-all solutions.

It's also important to evaluate an adviser’s investment philosophy, process and track record of success. We believe a strong adviser should follow a consistent, research-driven approach and be able to explain how their strategy is designed to manage risk, respond to market volatility and support your long-term goals. While past performance doesn’t guarantee future results, understanding how an adviser has helped clients in a variety of market environments can help you better evaluate your potential experience. Avoid advisers who rely on market timing, over-emphasize non-repeatable predictions or can’t provide you with a long, verifiable history of the types of results their clients have achieved.

Make sure you understand how your wealth manager is compensated. Fiduciary investment advisers are typically fee-only and paid directly by clients. If an adviser says they are "fee-based," then it’s possible the adviser is dual-registered as both an adviser and a broker-dealer, which can make it difficult to understand which role they are acting in at any given time. If you’re not sure, you can simply ask the adviser whether they are acting as a fiduciary for you. Transparent pricing and a clear explanation of services can help you evaluate whether the value provided aligns with the fees you pay. Avoid advisers that can’t give you simple, comprehensive answers when you ask about their fees.

Finally, consider the quality of communication and service. The right wealth management professional takes time to understand your situation, explains complex topics in straightforward terms and keeps you informed with regular updates and ongoing guidance. Trust, clarity, and alignment are essential. In our view, the best financial adviser should act as a long-term partner—helping you make informed decisions and stay focused on what matters most for your financial future.

How Fisher Investments Can Help

Fisher Investments is an independent, fee-only investment adviser. Fisher Investments and its affiliates manage over $386 billion in assets under management, serving over 195,000 individuals, families, businesses and institutions around the world.

With decades of experience, Fisher Investments specializes in helping retirees achieve their long-term financial goals. What sets us apart? We don’t believe in one-size-fits-all solutions. Instead, we take the time to understand each client’s unique needs and aspirations, crafting personalized wealth management plans to guide them at every stage of their financial journey.

Unlike some options available to retirees where advisers are required to play a variety of parts—handling everything from paperwork and attracting new clients to portfolio management and client service—our professionals serve clients in their area of specialization. That way, Fisher Investments clients can feel confident they are receiving advice and service from someone dedicated to, and focused on, their needs.

We believe retirees deserve simplicity and transparency when it comes to the fees we levy. We also believe an investment adviser’s interests should align with their clients’. That’s why we offer a simple, transparent advisory fee based on the size of the portfolio.

We invite you to contact us and learn more about how our client-first culture, time-tested investment process and suite of services can help retirees like you take control of your financial future.

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*As of 12/31/2025. Includes Fisher Investments and its affiliates.