THE NEW RULES OF RETIREMENT SAVING • 39
So what’s the alternative? Safer instruments, like bonds. But in today’s low-interest rate environment, safer instruments can’t earn enough growth to make them reasonable market alternatives. Remember my son-in-law and the $1,200 he earned on govern- ment bonds? Many savers are asking themselves: What’s worse? Making and losing money over and over again in the market, or not making much money at all each year in safer options? Neither one is likely to be a successful approach. Your Market Risk As I said, market risk is all about how you get the money you’re saving to grow. The double-punch of a volatile stock market and low interest rates have made that harder for you today than in years past. There’s one more risk that may hit you even harder than a roller-coaster market. That is tax risk.
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