5 assets you’ll almost never regret buying in retirement (if you crave both income and security). How many will you buy in 2026?

But staying educated and understanding how and why certain investing decisions are made during retirement is important. With that in mind, here are the top five assets that can help you strike a healthy balance between income and security over the long-term.

1. Money market funds

After a prolonged period of ultra-low interest rates, money markets seemed obsolete. But the sudden rise in interest rates in recent years has renewed the popularity of these funds with seniors and retirees.

As of December, 2025, there’s a record-breaking $8 trillion sitting in these funds, according to Crane Data cited by Bloomberg (1). That’s up from $4.6 trillion at the end of 2020. With yields as high as 4.6%, it’s easy to see why so many savers are pouring money into these flexible and lucrative assets (2).

A healthy dose of money market funds could help diversify your retirement portfolio while generating income.

2. Treasury Inflation-Protected Securities (TIPS)

Although government treasury bonds are considered some of the safest assets on the market, they do not protect you from the biggest risk to your retirement plan: inflation. A sudden wave of inflation can quickly wipe off even an attractive bond yield, effectively draining your purchasing power over time.

Fortunately, Treasury Inflation-Protected Securities (TIPS) are designed specifically to address this risk (3). Unlike traditional treasuries, the principal amount on TIPS are adjusted to match the inflation rate.

So even though the yield is often modest, the payout is much more attractive after the principal is adjusted for inflation. Let’s say you invest $1,000 in a 10-year TIPS that offers a 1.88% yield in a year with 2% inflation, the yield is actually applied to $1,020 in principal value.

3. Multi-year guaranteed annuities (MYGA)

Annuities are not suitable for all retirees in all circumstances, but certain types of annuities can fit specific gaps in your investment plan.

For instance, a multi-year guaranteed annuity (MYGA) offers a fixed interest rate for a fixed period, usually between three and ten years. Taxes on these instruments can be deferred until the end of the term (4). That makes them an ideal tool for tax planning and bridging gaps in your income.

For instance, if you retire a few years before you claim Social Security, these MYGAs can serve as a bridge of reliable income. Such limited use of fixed and simple annuities could be a powerful tool in your retirement plan.

The trade-off is limited access to your money during the term, which means MYGAs work best when you’re confident you won’t need those funds for unexpected expenses.

4. Covered call funds

Covered call funds offer market exposure with some income generation. These funds sell call options on the underlying stocks so you get a certain level of recurring income. But the trade-off is clear: if the market surges your upside is limited.

These are not suitable for all investors, but if you’re a retiree focused on maximizing income, covered call funds could be worth considering. As of October, 2025, the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) offers a 9.4% yield, which demonstrates the appeal of these funds.

5. Real estate investment trusts (REITs)

Real estate is an ideal asset class for retirees, but if you don’t want to deal with tenants, maintenance and mortgage approvals there is a better way to add this asset to your portfolio. Real estate investment trusts (REITs) are basically property funds that trade on the stock market.

These unique financial instruments offer a rare combination of steady income, inflation hedges, and liquidity. Some funds even offer exposure to properties that are beyond the reach of an average retiree, such as data centers or warehouses.