Retirement Investments That Don’t Rise and Fall With the Stock Market

Stock market swings can rattle a retirement account overnight, especially for anyone within a few years of drawing down their savings.

A handful of investment types move independently of equities, giving retirees a way to protect principal or generate income without watching a ticker every morning. This covers the main options, what they currently pay, and where each fits into a retirement plan.

Key Takeaways

• Multi-year guaranteed annuities and CDs offer fixed, predictable returns unaffected by stock market performance.
• I bonds and TIPS adjust with inflation, protecting purchasing power regardless of equity market direction.
• Diversifying across several non-correlated assets reduces sequence-of-returns risk for retirees taking withdrawals.

Why non-correlated assets matter in retirement

A 20-year-old with decades until retirement can ride out a market crash. A 68-year-old pulling 4% a year from a portfolio does not have that luxury. Selling stocks at a loss to cover living expenses locks in the damage and shrinks the base that has to recover later.

This is called sequence-of-returns risk, one of the biggest threats to a retirement plan even when long-term average returns look fine on paper.

Holding savings in assets that don’t track the S&P 500 gives retirees a buffer. When stocks drop, these can be tapped for income instead, leaving the equity portion time to recover.

Certificates of deposit (CDs)

CDs remain one of the simplest ways to lock in a guaranteed rate. As of July 2026, top nationally available CD rates run close to 4.30% APY, well above the FDIC national average of 1.65% for a one-year CD and 1.35% for a five-year CD as of mid-June 2026.

The Federal Reserve cut its benchmark rate three times in late 2025 and has held steady through 2026, so CD rates have stabilized. The CD market’s yield curve is currently inverted: short-term CDs pay more than long-term ones, so a five-year lock-in doesn’t automatically beat a one-year term.

A CD ladder, splitting money across CDs with staggered maturity dates, lets a retiree access funds every year while the rest keeps earning a locked rate.

Series I savings bonds

I bonds are issued directly by the U.S. Treasury and adjust every six months based on inflation. The current composite rate, for bonds purchased between May 1 and October 31, 2026, is 4.26%. That combines a fixed rate of 0.90%, locked in for the bond’s full 30-year life, plus a variable rate tied to the CPI that resets twice a year.

Inflation has been picking up again. The CPI rose 3.3% year-over-year in March 2026, up from 2.4% in February, per the Bureau of Labor Statistics, part of why the composite rate climbed from 4.03% to 4.26% in May.

Purchases are capped at $10,000 per person per year in electronic bonds through TreasuryDirect, with another $5,000 available in paper bonds via a federal tax refund. Money must stay put for at least a year, and cashing out before five years forfeits the last three months of interest.

Treasury Inflation-Protected Securities (TIPS)

TIPS work on a similar principle to I bonds but trade on the open market and can be purchased in far larger amounts.

The bond’s principal adjusts with the CPI, so the underlying value and semiannual interest payments both rise with inflation. TIPS can be bought through TreasuryDirect in 5, 10, or 30-year terms, or held in a brokerage account, mutual fund, or ETF.

TIPS are more liquid than I bonds since they can be sold on the secondary market before maturity, though the price fluctuates with rates. TIPS fill a different niche for retirees who want inflation protection but also want an exit option.

Fixed and multi-year guaranteed annuities (MYGAs)

Fixed annuities, particularly multi-year guaranteed annuities, have become one of the more competitive options against CDs.

As of late July 2026, the best 5-year MYGA rates from top-rated carriers reach roughly 6.30% to 6.45%, well above the 4.15% to 4.65% on a comparable 5-year CD:

These figures come from insurer surveys published by Annuity.org and My Annuity Store, representing the top end of the market from A-rated carriers. Average rates run lower, closer to 4.85% for 3-year terms and 5.45% for 5-year terms across a broader set of insurers.

MYGAs offer tax-deferred growth, meaning interest isn’t taxed until withdrawn, unlike CD interest, taxed annually. They typically require a higher minimum investment, often $5,000 to $10,000, and limit penalty-free withdrawals to around 10% per year.

Because these are insurance products rather than bank deposits, they carry insurer credit risk instead of FDIC protection. Sticking to carriers rated A- or higher by AM Best is how advisors manage that risk.

Real assets and other non-correlated options

A few other categories carry different risk profiles but still move independently of equities.

• Real estate, whether direct ownership or non-traded REITs, moves on its own cycle tied to local housing supply, rents, and rates.
• Gold has historically shown low correlation to stocks during market stress, though prices can be volatile month to month.
• Stable value funds, common in 401(k) plans, preserve principal while paying a modest yield.

None of these fully replace the guarantees of a CD, I bond, or MYGA, but they add diversification beyond fixed income.

Comparing the options

Conclusion

Retirees don’t have to choose between growth and stability; combining CDs, I bonds, TIPS, and fixed annuities gives a portfolio multiple sources of guaranteed or inflation-protected return.

The right mix depends on how soon the money is needed and how much liquidity is required.