THE NEW HOLISTIC RETIREMENT • 33
Even short-term, these higher interest rates are pTrhoabt'asbly not helping you as much as you think. because higher inflation can wipe out increases in i i n n t fl e a r t e io st n r i a s te r s unn in ing te a r t ms 8% o , f an co d ns in u t m er e e r st b r u a y te in s g ris p e ow to er. 3% If , smaovneresy. are still losing 5% on the buying power of their This is the difference between Nominal and Real interest rnaotme si .n "aNl or amt ei n aa ld"j ursatteeds af orre ian fdl aotliloanr , yoi er l db.u "yRi nega l "p orwa teers. aI tr'es tt hh ee Rtoedaal yi'nstRereeasl trartaetse atrheast tmillartetleartiavselyyoluows.pend your money. And So, what does it mean for your retirement? It means we can’t rely on our parents’ strategies to carry us through. We need something new.
The Saver’s Dilemma tShaev ecrosntfol udxa yo ff aac ev os ol amt i el et hsi tnogc kn omoatrhkeert gaennde rl aotwi o n h a s f a c e d : real interest rates In . Modern Portfolio Theory (which is just a fancy way of describing how financial advisors balance risk and protection
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