Government bonds and bills may be your safest bets. As a general rule, older investors choose low-risk investments. When younger investors choose to go low risk, it is usually to balance their portfolio. A low risk investment gives low returns and high risk, high returns. It is easier for young people to grow their savings faster by taking higher risk investments; they will have the time to make up for any wrong decisions made. The elder can no longer afford to take risks. Based on history, stocks outperform bonds in the long run.
However, bonds outperform stocks at certain times in the economic cycle. If all your money is invested in stocks and you need cash when the stock market is down, you may have a big problem. Putting a part of your savings in bonds will give you a more stable investment portfolio. With bonds, you can predict your investment earnings and determined the amount you have to save to achieve your financial goal.