The Best Retirement Investments for High-Net-Worth Individuals in 2025
Investment Strategies | by Jules Buxbaum | Monday, March 03, 2025
High-net-worth retirement investments can be both exciting and daunting, especially for those preparing to preserve significant wealth in 2025. Investing strategies and tax laws are shifting in ways that demand fresh thinking, and if you’re looking to diversify your retirement portfolio, you are hardly alone.
In fact, a recent Fidelity survey found that one-third of people making financial resolutions plan to adopt a more conservative strategy this coming year. Staying proactive is critical, but it doesn’t mean stepping away from strong, long-term growth opportunities.
Why High-Net-Worth Retirement Investments Matter in 2025
For wealthy individuals, the stakes in retirement planning are especially high. Larger estates can become more exposed to taxes, and healthcare or family obligations can drive costs upward.
Many investors get stuck in asset allocations that push them into conservative holdings too soon. Historically, equities have outperformed other asset classes for decades, partly due to the well-known equity risk premium—extra returns over bonds that persist despite extensive academic research. While no one can predict the future, there is little evidence suggesting this premium will disappear anytime soon.
Key Factors Shaping Your Strategy
In 2026, the federal estate tax exemption will drop from $13.6 million per individual to roughly $7 million. That means more high-net-worth families could face increased estate taxes if they don’t plan carefully (WealthManagement.com, 2025).
Meanwhile, healthcare costs keep rising. Wealthy retirees may face steep bills for advanced care or long-term support. These challenges underscore why income quality and diversification matter for long retirements.
Tax Changes on the Horizon
Taxes are a big worry for many wealthy individuals. Fortunately, techniques like carefully timed Roth conversions or tax-loss harvesting can help reduce overall tax burdens. You might also explore accounts designed to hold tax-inefficient assets, such as municipal bonds or dividend-heavy stocks, in tax-advantaged vehicles. If you want even more targeted insights, consider reading our tips on how to minimize taxes on your retirement income.
Healthcare and Longer Lives
Many high-net-worth retirees anticipate living well into their 80s or 90s. Paying for advanced care is expensive. Holding a portion of assets in stable, risk-managed investment vehicles can help cover these unpredictable expenses. At the same time, thoughtful growth-component investments can offset the effects of inflation.
Top Investment Strategies for Wealthy Retirees
Building a sensible portfolio in 2025 involves balancing risk, growth, and preservation. Below are strategies many high-net-worth investors find valuable.
1) Enhanced Equity Allocations
Equities typically offer higher returns over long stretches, so many professionals believe unconventional glide paths may be wise. Instead of dialing back stock exposure strictly by age, some factor in future earning capacity or outside income sources. A person who still consults part-time may withstand more equity volatility than someone fully dependent on withdrawals.
Historically, the equity risk premium rewards those who stay invested in stocks. Of course, it’s prudent to keep some assets in short-term instruments for emergencies, but draining your stock exposure prematurely can stunt portfolio growth.
2) Rethinking Age-Based Glide Paths
Traditional glide paths suggest you should reduce risk automatically as you grow older. That logic misses the reality that your “human capital”—future earning potential—may matter more than age alone.
Consider two individuals at age 55. One has large future earnings from a business or structured royalties, while the other is fully retired without any extra income. The second person likely needs to be more conservative. The first can sustain more equity exposure since future earnings offset market fluctuations.
We’ve explored how placing trust in age-only formulas can carry hidden pitfalls. For further reading, check out the Hidden Risks of Target-Date Retirement Funds, where you can see why a one-size-fits-all approach is not ideal.
3) Considering Alternative Assets
For higher growth potential or uncorrelated returns, many wealthy investors incorporate alternative assets into their mix. Private equity, hedge funds, and real estate partnerships can augment a portfolio by tapping into unique opportunities.
While these investments may improve returns, they can also carry higher fees and limited liquidity. Evaluating how each fits with your broader strategy is crucial before committing capital.
4) Tax-Efficient Accounts and Withdrawals
Roth IRAs or specially structured trusts can shelter gains from high tax rates, so contributions and conversions made earlier in retirement can pay off later. A well-timed Roth conversion may be especially useful before Required Minimum Distributions (RMDs) kick in. Adding charitable giving methods can reduce taxes while benefiting causes you care about.
Since state rules vary, you may want to compare tax incentives across states if you plan on moving or maintaining property in multiple locations.
5) Real Estate Possibilities
From direct property ownership to real estate investment trusts (REITs), this sector presents both income potential and inflation hedging. Wealthy retirees often gravitate to properties in high-demand locations or consider specialized vehicles that diversify across multiple regions and property types.
Real estate can carry liquidity risks, but it remains a favored choice for those seeking rental income or long-term appreciation, especially in stable or fast-growing markets.
6) Prioritizing Risk Management
Regardless of net worth, market downturns can create anxiety. Diversification across equities, bonds, and alternatives is a standard response. However, advanced hedging techniques, specialized insurance policies, or personal savings accounts for emergencies may also be prudent.
If you’re anxious about volatility, you can hold treasuries, short-duration bonds, or other relatively steady options to cover near-term expenses, allowing your longer-term investments to recover if the market dips.
7) A Word on Annuities
Some annuities guarantee income for life, which can be appealing if you seek predictable cash flow. Fees and liquidity limits, however, vary widely. High-net-worth individuals who expect to leave a legacy or have large bequests might avoid excessive annuitization.
For a balanced view of these products, explore our discussion of the pros and cons of annuities in retirement.
The Role of Future Earnings in Investment Decisions
Plenty of advice focuses on age alone, but your ability to generate future income plays a major role in how much stock-market risk you can comfortably handle. If you plan to consult or run a small business during retirement, those future earnings behave like a low-risk asset.
A higher equity allocation may be feasible in this scenario, whereas someone without any outside income might consider more balanced exposure. The difference isn’t just about age—it’s about how stable or significant your supplemental income is.
How 2Pi Financial Approaches These Topics
At 2Pi Financial, we encourage investment strategies that weigh both wealth and future income, rather than assuming age determines risk tolerance. Our AI-driven platform helps professional service sales teams refine their project scoping, but the underlying principle applies to individual investors as well.
We also offer the 2Pi Financial Planning Engine (available at 2pifinancial.com/2pi-financial-planner). This tool evaluates your financial details—like retirement age, savings rate, and risk preference—then suggests a path for sustainable spending and optimal asset allocation. Even small tweaks, such as altering retirement age by a couple of years, can strengthen your plan’s durability over a multi-decade period.
Bottom Line
High-net-worth individuals must weigh growth against risk in 2025, all while monitoring looming estate tax changes and rising healthcare costs. Tailored equity allocations, selective alternative investments, and thoughtful tax strategies can support a secure and flexible retirement.
Just remember, well-intended approaches can still go awry. Before finalizing your roadmap, take a moment to review common mistakes many retirees make. Even small oversights can lead to costly outcomes in the long run. Fine-tuning now may preserve your lifestyle and safeguard your legacy for the next generation.
References
WealthManagement.com. (2025). “The Top 5 Issues Facing High-Net-Worth Individuals in 2025.” Available at: https://www.wealthmanagement.com/high-net-worth/the-top-5-issues-facing-high-net-worth-individuals-in-2025
Fidelity Investments. (2025). “Retirement Savings & Insights Report.” Available at: https://www.fidelity.com
Dfrench Advisors. (2025). “Navigating Wealth in 2025: Key Strategies for High-Net-Worth Individuals.” Available at: https://www.dfrenchadvisors.com/news/navigating-wealth-in-2025-key-strategies-for-high-net-worth-individuals
