Experts Say These Are the Safest Places for Your Retirement Money

Sometimes, it pays to have a higher risk tolerance for your money. For example, if you're young and have a few decades before you retire, investing your money in the stock market for maximum earning potential is a good idea.

But sometimes, you may be interested in something other than earning the most money and instead want a safe place for your cash. Retirees, or those nearing retirement, may be more interested in these investments.

No matter your life stage, here are a handful of safe places to put your money.

1. CDs

Certificates of deposit (CDs) are a very safe place for your retirement money. For starters, they are FDIC insured (as long as you take them out from an FDIC member bank), so your money is protected up to $250,000 per account holder per bank.

CDs are also a good option for earning a high annual percentage yield (APY). Many CD rates pay 5.00% or higher right now, and you're guaranteed to earn the agreed-upon rate as long as you leave your money in the CD for the entire term.

Just be sure you're comfortable locking up your money for a set period. Many CDs charge between 90 to 180 days of interest on the amount you withdraw early.

Why it's good for some retirement money: CDs are a great option if you want a safe place for some of your retirement cash and want a near-guaranteed return.

2. Money market accounts

Money market accounts (MMAs) offer maximum flexibility by combining checking and savings account features. Whether you want to earn a high APY, write checks, or use a debit card with the account, MMAs may be right for you.

Money market accounts are also typically FDIC insured (again, you'll want to verify your bank is covered), and many of them offer APYs of 5.00% or higher now. This means your money can sit safely in these accounts and earn an impressive return at the same time. Remember that many MMAs may limit you to six monthly withdrawals and may have a lower APY than some online savings accounts.

Why it's good for some retirement money: MMAs are a good choice if you want to earn a solid interest rate on your cash, but also want the flexibility of taking out your money without penalty.

3. Savings accounts

FDIC-insured savings accounts have always been a safe place to keep some of your money, but they're also a great place to keep some retirement cash right now. That's because many of them are paying APYs of 5.00% or higher.

It may be easier to find a higher APY with a savings account than with an MMA, which makes them a great choice for keeping retirement money that you want easy access to.

Why it's good for some retirement money: A high-yield savings account is great for your emergency fund or for cash that you might need soon -- say, for a home down payment or car purchase -- but aren't using immediately.

How much should go into these accounts?

Everyone's financial situation is different. However, according to Charles Schwab, there are a few money distribution rules of thumb that are based on age:

• Age 60-69: 60% in stocks, 35% in bonds, 5% in cash
• Age 70-79: 40% in stocks, 50% in bonds, 10% in cash
• Age 80 and up: 20% in stocks, 50% in bonds, 30% in cash

The investment firm recommends putting one year's worth of cash in a safe, liquid account to supplement your Social Security and any other retirement income. This account could be a money market or savings account.

Additionally, have two to four years of expenses in a short-term reserve like bonds or CDs. This allows some of your money to continue earning interest with little risk or volatility.

Of course, where you put your retirement cash depends on your risk tolerance. But it's important to remember that you should adjust your strategy as you get older and find a few safe places where you feel comfortable putting your money.