Definition: Capital Preservation - Examples & Advice | Bolder Money

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Definition

A strategy focused on protecting the value of your money rather than aiming for high returns. Often involves safer, lower-yield investments.

What to consider

If safety is your priority, focus on preserving what you have.
Consider low-risk investments that protect your principal.
This approach is about steady growth rather than quick wins.

Real world scenarios

Greg shifts part of his retirement portfolio into a money market fund, prioritizing the safety of his principal.
Ana chooses certificate of deposit (CD) ladders to maintain value with minimal risk while still earning modest interest.
Kamal pares back aggressive stocks before retirement, focusing on capital preservation as his top goal.

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