Smart Retirement

Episode 35: The 7 Risks You'll Face in Retirement - Part 4 (Interest Rate & Market Risk)



October 27th, 2020  •  30 mins 35 secs  •  Download (42 MB)  •  Link with Timestamp

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In this episode Mike and Matt touch on the final part of the series that focuses on the 7 retirement income risks. With the type of year we’ve had in 2020, the guys thought it would be best to save Interest Rate & Market risk for the last part of this Series. They go into details as to why having a “risk free” holding like a Certificate of Deposit or Money market account can cause interest rate risk relative to the inflation rate during the time you hold that investment. Additionally, later in the show Matt helps listeners understand how Market risk is the second highest retirement income risk (likely Withdrawal risk is #1). The guys discuss the details of why when Americans retire and stop contributing to and start withdrawing from retirement accounts, they become much more susceptible to market risks; especially in a Bear Market.