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Consider Patricia, 66, who is in a good position for her golden years. She’s retired from her full-time job, but still does some consulting work on the side to bring in extra cash. She’s paid off her house, doesn’t have any debts, has plenty of savings and is in good health.

She also has about $100,000 in cash sitting in a high-yield savings account, which she used as an emergency fund for many years. Now, she’s wondering if she should move that money into S&P 500 index funds, which have been surging in the past months.

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The S&P 500 hit an all-time record high of 7,501.39 on May 14 (1) — though it has since retreated (2), fueling some concerns that the party can’t last forever.

At the moment, the daily ups and downs of the stock market don’t worry Patricia too much, as she doesn’t need the money right away. She’s planning to take her Social Security benefit at her full retirement age of 67, and in the meantime, she’s living off her savings and bringing in extra cash through her part-time consulting work.

Patricia’s more concerned about the long term. Her worry about investing her $100,000 is that she doesn’t want to risk losing it all if the market crashes. Is she right to be worried?

The S&P 500 has been rallying since the end of March — despite a war with Iran and blockade of the Strait of Hormuz that’s led to the largest oil-supply disruption in history, sending oil prices through the roof.

The U.S. stock index initially fell during the first few weeks of the war, which began Feb. 28. But stocks have since rallied, now trading near all-time highs based on optimism about the near-term future.

“The stock market isn’t trying to price what’s happening today,” Joe Seydl, senior markets economist at J.P. Morgan Private Bank, told CNBC (3). “The stock market is always trying to price what the world is going to look like six to 12 months from now.”

In spite of the latest proposal from Iran to end the conflict getting a solid “no” from the White House, along with its temporary impact on the markets (4), investors are betting that the Iran conflict will be short-lived.

They’re also betting on President Trump’s deals with Chinese President Xi Jinping and the new “board of trade” and “board of investment” both countries are setting up to manage trade deals, as well as with the “expanded two-way trade” in agricultural goods that was announced (5).

At the same time, the S&P 500 has been boosted by gains in tech and AI-related stocks — driven in part by high demand for new data centers to fuel the rapid growth of AI. This is despite concerns of inflation related to rising oil prices (6).

However, there are also concerns of a market correction (or crash) amid fears that the war is dragging on and that the AI bubble could burst. Billionaire investor Warren Buffett says the stock market is “playing with fire (7),” and investor Michael Burry is warning of a dot-com-style crash (8).

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Since its launch in 1957, the S&P 500 has delivered annual returns of around 10.5% (9). Markets have also historically rebounded after a crash, although the timelines vary. So, if you might need the money sooner rather than later, investing in the S&P 500 could be a riskier proposition.

For an older American like Patricia, deciding to invest more of her money in S&P index funds is a matter of risk tolerance. Most people who’ve reached retirement age are taking a different strategy, shifting to more conservative investments to reduce exposure to market volatility.

On the other hand, being too conservative could erode your purchasing power over time. For example, if Patricia’s $100,000 is earning 1% and the rate of inflation is 3%, then she’s losing 2% in purchasing power.

What Patricia can do is look to alternative investments that won’t be impacted by market volatility. Hedging her bet against the market with uncorrelated assets means that she can rest easier as the S&P dips and soars.

In a period of heightened market volatility, data suggests stocks and bonds alone may be less reliable for consistent long-term growth. As alternative investments become more accessible and attractive, more investors are seeking smarter ways to diversify.

Now, Masterworks is offering a single investment that combines blue-chip art with other scarce assets, such as gold and bitcoin, that have historically moved independently of equities and of one another.

The result is a more balanced, all-weather approach to alternative investing. In fact, this model would have outperformed the S&P 500 by 3.1x from 2017 to 2025.*

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If Patricia doesn’t need the money for another five to 10 years, she could potentially afford to take more risk — if she’s up for it. Ultimately, she’ll have to decide how much risk she’s comfortable with, and if a market crash would cause her to lose sleep at night.

There are a few other considerations, too. While Patricia is healthy, life happens. She’s covered by Medicare, which kicks in at age 65, but it doesn’t mean she’s covered for everything. For example, Medicare doesn’t cover long-term care in an assisted living facility.

Plus, there are premiums, deductibles and coinsurance for certain services. A 65-year-old retiring today can expect to spend about $172,500 on healthcare in retirement, according to Fidelity’s 2025 Retiree Health Care Cost Estimate (10).

That’s why many financial experts recommend diversifying your investments across asset classes, industries and geographic regions so that you’re not putting all of your eggs in one basket. The S&P 500, however, has become less diversified, thanks to its high concentration of tech stocks.

For this reason, Patricia could decide to invest in the market in a different way, funneling some of her consulting earnings into stocks while using her savings for other types of investments. This way, she can spread her risk, and she could even automate this process.

In fact, one of the most effective ways to do stock investing is by automating your contributions so they line up with each paycheck. When your investing happens first — before bills or impulse spending — you can consistently build your nest egg without having to think about it.

Platforms like Stash make this incredibly straightforward.

With over 1 million active subscribers and more than $5 billion in assets under management, the intuitive app lets you set daily, weekly or monthly recurring investments that fit your cash flow.

You can build a diversified portfolio in just a few clicks using its award-winning Smart Portfolio, which adjusts your investment mix based on your goals and risk level. Prefer a more hands-on approach? You can also choose your own stocks and ETFs, or combine both styles.

And if catching up on retirement is a priority, a Stash+ subscription offers 3% IRA matching, which can give your contributions an extra boost.

You can set up a recurring deposit in just a few minutes and steadily build your nest egg on autopilot.

Plus, you can get a $25 bonus investment when you fund a new Stash account with $5, plus a 3-month trial to explore the platform.

*All investments are subject to risk and may lose value. View important disclosures. Offer is subject to T&Cs.

If Patricia isn’t comfortable rolling the dice with her money — especially during a time of geopolitical uncertainty — she could continue to keep it in a high-yield savings account or a certificate of deposit (CD), which has a set interest rate for a specific period of time. The downside is that she’ll receive lower returns, but she’ll also reduce risk.

With a CD, you lock in a rate up-front, so your earnings stay fixed for a set term, even if market rates slip.

For those seeking predictable, reliable growth, a platform like CD Valet can help you find higher-yield options that work for you, whether you’re saving for something soon or building a cushion for the long haul.

CD Valet tracks over 40,000 verified rates from FDIC-insured banks and NCUA-insured credit unions nationwide, but unlike other websites, they show every publicly available rate, ensuring you have a comprehensive view of the market.

Plus, their CD rates are updated continuously, so you can shop, compare and open CDs with ease.

Having a large amount to invest like $100,000 is almost a blessing and a curse. It’s obviously a great opportunity to build your wealth, but at the same time, it can feel like you have too many options.

To explore her choices, Patricia may want to sit down with her financial advisor, who can help her out by taking into account her upcoming Social Security benefits and future withdrawal strategies to extend her retirement savings. In the end, there are several paths she can follow, and she may choose to spread her risk across a few investments.

If you’re like Patricia and have a large portfolio, getting experienced investment advice is critical for long-term growth and management. Financial decisions often become increasingly nuanced, especially for investors with portfolios of $250,000 or more.

Managing withdrawals, minimizing tax exposure and ensuring long-term sustainability often require greater coordination and strategic planning.

That’s why you might want to consider using a platform like WiserAdvisor, which connects you with vetted professionals who specialize in this kind of planning.

To get started, simply answer a few questions about your savings, retirement timeline and overall investment portfolio. From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.

You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.

WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.

— With files from Vawn Himmelsbach

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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Forbes (1); CNBC (2),(3),(8); Bloomberg (4); CNN (5); Morningstar (6); Fortune (7); Official Data Foundation (9); Fidelity (10)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.