You’re 10 years from retirement — here are 5 investments worth a second look before it’s too late

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It might be time to flip the retirement investing script. For decades, the focus has been simple: grow your money as much as possible and build up that nest egg. But once retirement is about 10 years away, financial experts say the strategy often starts to shift.

Instead of chasing the biggest returns, many investors begin focusing on protecting the wealth they’ve already built, while still keeping enough growth in the mix to outpace inflation and fund their retirement years.

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A recent analysis from SmartAsset (1) highlights investments people often reconsider during the final stretch before retirement.

The goal isn’t to panic or forget about growth, but to be as prepared as possible.

Why the last decade before retirement matters so much

The years leading up to retirement are sometimes considered one of the most financially delicate periods of a person’s life.

At this stage, many workers have accumulated the majority of their retirement savings. But with fewer working years ahead, there’s also less time to recover from a major market downturn.

Analysts at U.S Bank (2) warn about “sequence of returns risk” which occurs when a steep market drop happens shortly before or just after retirement begins. If retirees start withdrawing money while their portfolio is down, those losses can permanently reduce how long their savings last.

As retirement approaches, investors often begin adjusting their portfolios to include a mix of growth and lower-risk assets.

Here are five investment categories experts say to consider:

Read More: Almost 50 with no retirement savings? Here’s why you shouldn’t panic

Diversified equity funds

Even close to retirement, most portfolios still include stocks.

Diversified equity funds, like total market funds or broad index funds, allow investors to stay connected to long-term market growth while spreading risk across hundreds or even thousands of companies.

Stocks have historically delivered stronger long-term returns than most other asset classes, making them important for keeping retirement savings growing, but many advisors recommend gradually reducing stock exposure compared with earlier in your career.

Dividend-paying stocks

Dividend stocks offer something many near-retirees begin prioritizing: income.

Companies that pay dividends distribute a portion of their profits to shareholders, creating a steady stream of cash that can supplement retirement income while still allowing investors to participate in market gains.

Over long periods, reinvesting dividends has also been a major driver of total stock market returns. However, dividends are not guaranteed and can be reduced during economic downturns.

Bonds and bond funds

Bonds can often take on a larger role as retirement approaches.

Because they tend to be less volatile than stocks, bonds can help stabilize a portfolio during market swings while generating relatively predictable interest income.

Many financial advisors suggest gradually increasing bond allocations during the final decade before retirement to help cushion potential stock market declines.

Annuities

Some retirees also explore annuities, insurance products designed to provide guaranteed income for a set period or even for life.

For investors who may be concerned about outliving their savings, annuities can act as a financial safety net. However, they can come with fees and complex terms, so experts typically recommend reviewing them carefully before committing.

Cash and capital-preservation investments

Cash alternatives, including high-yield savings accounts, money market funds and certificates of deposit, can help cover short-term expenses and keep your funds accessible.

While these investments usually offer lower returns than stocks or bonds, they can help retirees avoid selling long-term investments during a market downturn.

A balanced approach

Hitting the 10-year mark before retirement doesn’t necessarily mean shifting everything into ultra-conservative investments. Instead, financial advisors like Morgan Stanley often recommend having a clear understanding of your finances and adjusting as necessary.

You could do this by:

• Reviewing your income sources

• Putting aside money for near-term expenses

• Paying off high-interest debt

• Stress-testing your portfolio against potential downturns

• Planning how withdrawals will work once retirement begins

For many households, this is also when it becomes especially important to review risk tolerance, run retirement income projections, and consider working with a financial advisor.

The final decade before retirement is about making smarter decisions, not drastic changes.

By shifting toward a mix of growth, income, and lower-risk investments, investors can help protect the savings they’ve spent years building while also preparing their portfolios for the moment they need those savings to start paying them back.

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SmartAsset (1); U.S. Bank (2)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.