34 • RU BY, WILD ING & SWANSBURG in an investor’s portfolio) , the traditional solution for retirees is adjusting asset allocation. ²¹ If you’ve ever heard a ff ri noannt icei ar ,l” pt hr iosf ei ss s wi ohnaatl t thael ky ma be oa un t. E“sms eanntai ga il lnyg, stahvee r es f fai dc ij euns tt hf uonwd st h ef ri ro ma s s ehti sg haerre- r iaslkl o/chai gt ehde r -arse wt haer yd aogpe t, i omn os v i lni kg e t htehier stock market to lower-risk/lower-reward options like CDs. But, as you just learned, that model is insufficient in today’s interest rate environment. Lower-risk ipnosrttrfuoml i oe natpsp rcoaanc’ht wpor or kv ifdoer me na no uy gsha v egrrso.w t h t o m a k e t h i s This tug-of-war between risky growth in the market and cs oo mn seetrhviantgi vIel i kneo nt o- gcraol lwt thhe “i Sna vf iexre’ sd Di inl ec ommmea .v” e h i c l e s c r e a t e s In your IRA or 401(k) , you’re trying to both grow and pr irsokt eocf tt hy eo umr af ruknedtsa. nYdo uh ohpa ev et ot oa cmc easkse hai gdheecri sgi or onw: At hc ,c oe pr tt at hk ee tmheeapnrinogtefuctlion of CDs and money market funds but give up real returns. Most of us compromise between the two, balancing and r c e o b n a s l e a r n v c a i t n iv g e o o u p r tio p n o s r . tf W ol h io a s t t b h e is tw m e e e a n ns th is e , o m ft a e r n k , e o t ur an ac d co m u o n r t e s aprreotegcrtoewdinthganslwowe’edrlitkhea.n they could be while staying less COVID didn’t create the saver’s dilemma, but it sure did exacerbate it. In the post-COVID era , it's harder to grow and protect your retirement funds. ²¹ James Chen. Investopedia. September 10 , 202 1 . “Modern Portfolio theory (MPT).” https://www.investopedia.com/terms/m/modernportfoliotheory.asp
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