Jeremy Keil breaks down the Investopedia.com list of the 11 best low-risk investments for 2025

When people talk about low-risk investments, it’s usually because they’re trying to avoid surprises. And let’s face it—if you’re retired or planning to retire soon, surprises are not your friend. That’s why I took a deep dive into a recent Investopedia article listing the “11 Best Low-Risk Investments: Safest Options for 2025” and unpacked what these options really mean for investors nearing or in retirement.

The number one question every investor needs to ask isn’t “what’s the highest return I can get?” It’s “When do I need this money?” Time horizon is everything when you’re choosing between short-term and long-term investments. Let’s walk through what Investopedia got right, what they got wrong, and how you can potentially make better choices for your retirement future.

1. Preferred Stock: Low-Risk? Not So Fast

Investopedia put preferred stock at the top of their list. I’m not convinced that’s where it belongs.

Preferred stock is like a hybrid between stocks and bonds. It pays a fixed dividend, which sounds comforting—until the market drops. In 2022, preferred stocks were down 18.3%, which was actually worse than the S&P 500’s 18.1% decline. If you’re looking for stability, that’s a tough pill to swallow.

The lesson here? Fixed dividends don’t guarantee safety. Preferred stock might play a role in your portfolio, but calling it “low risk” might be a stretch.

2. High-Yield Savings Accounts: A True Safe Bet

Now this is more like it. High-yield savings accounts are FDIC-insured and can offer 4%+ interest as of mid-2025. Compare that to the national average of 0.42%, and you see why parking your short-term cash here makes a lot of sense.

If your money is just sitting in a regular savings account, it’s probably time to move it. Online banks often offer better rates, and they carry essentially the same protections as your brick-and-mortar bank.

3. Money Market Funds

This one’s tricky. A money market account is a savings product offered by a bank and FDIC-insured. A money market fund is an investment through your brokerage that is not FDIC-insured—but typically offers higher yields and flexibility inside an IRA or brokerage account.

Both can be solid options depending on your need for access and insurance coverage.

4. CDs

Certificates of Deposit (CDs) are familiar to most investors. But don’t just chase the highest interest rate. Match your CD’s maturity with when you actually need the money. If you need it in two years, you may not want to buy a one-year CD with the intention to roll it over—you’re gambling on future interest rates.

5. Treasury Bills: U.S.-Backed and Flexible

Treasuries are popular for a reason—they’re backed by the U.S. government and highly liquid. Through a brokerage account, you can buy Treasuries that mature when you need your money. Even better, if you have to sell early, they tend to hold value better than CDs, which may carry stiffer early withdrawal penalties.

6. TIPS: Great Inflation Protection, Not Immune to Volatility

Treasury Inflation-Protected Securities (TIPS) sound great on paper, and they do provide a hedge against inflation. But that doesn’t mean they’re immune to losses. In 2022, TIPS dropped 12%. If you’re buying them for short-term needs, you could get burned.

7 & 8. Triple-A Bonds & Bond Funds

There’s a myth out there that individual bonds are safer than bond funds. In reality, bond funds are just bundles of individual bonds. The key factor is duration—how long until the average bond in the fund matures. The longer the duration, the higher the risk when interest rates move.

9. Municipal Bonds: Tax-Friendly but Not Risk-Free

Municipal bonds are attractive for their tax advantages—especially for those in higher tax brackets. But keep in mind, they’re not backed by the federal government. If the issuing municipality runs into trouble, so could your investment.

10 & 11. Annuities and Cash Value Life Insurance

These two are often misunderstood. Multi-Year Guaranteed Annuities (MYGAs) offer CD-like stability but are backed by insurance companies rather than banks. Cash value life insurance can provide tax-deferred growth and tax-free death benefits, but you’re paying for those features.

As with any insurance product, read the fine print—especially the rules for accessing your money.

Final Thoughts: Think Strategy, Not Headlines

I appreciate Investopedia for sparking the conversation. Laying out these options side-by-side allows for a simpler comparison, but if you’re a longtime “Retirement Revealed” listener, you likely know what’s coming next. Trying to pick just one of these types of investments exclusively opens the door to the specific downside related to your choice–either the risk of loss or missing out on the missed growth opportunity that would have been available elsewhere. The takeaway isn’t to just pick an item off their list. It’s to understand how each of these fits into your retirement income plan.

The three things you always need to ask:

When do I need this money?
What are the risks—up and down?
How liquid is the investment?

Watch the full video to see me break down each of these 11 investments—and help you figure out which ones actually fit into a smart retirement strategy. And if you want help turning your savings into a sustainable income stream, let’s talk.

Don’t forget to leave a rating for the “Retirement Revealed” podcast if you’ve been enjoying these episodes!

Subscribe to Retirement Revealed to get new episodes every Wednesday.

Apple Podcasts: https://podcasts.apple.com/us/podcast/retirement-revealed/id1488769337

Spotify Podcasts: https://bit.ly/RetirementRevealedSpotify

Additional Links:

“11 Best Low-Risk Investments: Safest Options for 2025” – Investopedia.com
Investing in 2025: Simple Strategies with Joseph Hogue of Let’s Talk Money! – Retirement Revealed

Connect With Jeremy Keil:

Disclosures:

This podcast is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any listener. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.

The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political, or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past performance is no guarantee of future results.

Legal & Tax Disclosure: Listeners should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.

Advisor Disclosure: Alongside LLC, doing bu...