7 Investments I Plan to Liquidate Before Retirement

As retirees transition from a steady paycheck to relying on savings, many are looking to liquidate less desirable investments to supplement their income. Financial advisors are sharing their insights on which investments to sell in retirement to help retirees navigate this important financial decision.

One investment that financial portfolio advisor Michael Norber recommends selling in retirement is municipal bonds. While these bonds offer tax-exempt income, they typically produce lower returns than taxable bonds and may not be the best option for a retirement portfolio.

Real estate is another investment that Norber suggests selling as a retiree. The maintenance and upfront costs associated with real estate can be a barrier to entry for retirees, and there is always the risk of the property’s value declining over time.

High-risk or volatile stocks should also be considered for sale in retirement, according to David Reyes, founder and chief investment officer at Reyes Financial Architecture. These stocks can be too unpredictable and may not be suitable for retirees looking to protect their nest egg.

Speculative ventures and private equity are other investments that Reyes recommends selling in retirement. Stability and liquidity are key factors to consider when evaluating investments for retirement, and these types of investments may not provide the necessary security retirees need.

Lastly, retirees should reassess their life insurance policies to determine if they still make sense during retirement. While life insurance can provide income protection for families, it’s important to evaluate if holding onto these policies is the best financial decision.

Overall, financial advisors are urging retirees to carefully consider which investments to sell in retirement to ensure a stable and secure financial future. By strategically liquidating certain investments, retirees can better position themselves to enjoy their retirement years without financial stress.