During your working years, your investments likely have been geared toward growth, with the goal of helping you leave full-time employment. With retirement approaching, you should consider whether your investment strategy matches your future needs.

According to Dennis DeGidio, Thrivent Financial regional sales consultant, most retirees should put the money they absolutely need over the next three to five years in investments designed to protect capital and produce income (generally between 20 and 40 percent of an investment portfolio). Your capital preservation methods will depend in part on your level of risk tolerance.

Possible investments include bonds, fixed annuities, money market funds, CDs and savings accounts. Some of these, such as savings accounts and CDs that meet federal insurance requirements, are guaranteed. Fixed annuities are backed by the reserves of the issuing company. And others, such as bonds, can be selected according to your preferred risk level.

A technique called laddering can help balance risk in a bond portfolio. A laddered bond portfolio is a collection of bonds with different maturities spread over your investment time frame.

Ladders help optimize returns while protecting investors from sharp interest-rate changes. Short-term bonds are generally less sensitive to changing interest rates, but they offer lower yields than their longer-term counterparts. Typically, longer-term bonds offer higher yields, but with the risk that interest rates may rise during their terms. Therefore, a laddered portfolio can increase your chances of realizing better returns.

Once you’ve determined your conservative investments, DeGidio says, the remaining 60 to 80 percent of your total portfolio belongs in investments aimed at growth and income. Stocks, bonds or real estate fall under this description.

DeGidio emphasizes the importance of sticking with the risk level that makes you comfortable. "Get some professional advice on how much risk you can take based on your income needs," he says. "But stay in the range that's right for you. Maybe you can take more risk, but that doesn’t mean you should take more risk," he says.

Whatever investments you choose, a consultation with your Thrivent Financial representative will boost your confidence in your determined strategy.