People nearing their golden years usually focus on saving or amassing enough money so that they can have an enjoyable and stress-free retirement, Once they are officially retired, investing for them is typically out of the question. However, financial advisors say that individuals can also reap several benefits when they still invest even when they are already retired.

But whether you are young or already retired, making smart investment decisions and getting the most out of them will depend on following some useful tips and advice. For retirees, below are some helpful tips and advice worth following to ensure that they make the right, profitable investment decisions:

Don’t focus on only one risk. All types of investments come with certain risks. This is especially true when you invest in the stock market. However, retirees should know that avoiding stock market risk increases other types of risk. These include longevity risk or the risk of outliving your money. Financial advisors say that retirees should not consider short-term or certificates of deposit and other similar types of investment as being risk-free assets. This is because if you invest in them, you may still have a guaranteed return of capital. And this is an investment risk worth taking.

Don’t rule out bonds. Bonds still play an important role in any conservative investment portfolio designed for retirees. Most financial and investment advisors recommend retirees to invest in high-quality bonds, such as Treasury bonds or highly rated corporate bonds, and individual bonds or bond funds. However, retirees should stay away from high-yield bonds and high-yield bond funds since they are too risky.

Diversity your real estate investment trusts. Real estate investment trusts or REITs are investing option that provides diversification and generates income for retirees. However, to get the most out of this investment option, retirees would do well to diversify their portfolio. This means investing in commercial property such as warehouses, office buildings, and shopping centers and not just in residential properties. In addition, retirees investing in an REIT will do well to make sure it is diversified not just geographically but in terms of the type of commercial property. This is essential for diversification, stability, and for dampening volatility.

Consider investments that offer immediate annuities. Lastly, if you want a guaranteed income payout, annuities are a reliable option. With annuities, you get a monthly income in exchange for a lump sum or payments over a series of years as long as you live. There are various types of annuities and they come with different features. They can be expensive as well. As such, consider consulting a trusted financial adviser first before you deciding which type of annuity to invest in.