Quick Read – Parking 90% of a $1.7 million retirement portfolio in cash and short-term bonds costs roughly $39,000 annually in foregone returns over a 25-year horizon. – With inflation above 3% and average CD yields at 1.7%, cash delivers a negative real return, even as…
easuries and I-Bonds already pay up to 4.5%. – A bucket strategy fixes the problem without market-timing risk by capping cash at 2-3 years of expenses and shifting the rest into bonds and equities – Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today
Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here. Unnerved by market swings, a 66-year-old single retiree has roughly 90% of her $1.7 million portfolio parked in cash and short-term bonds.
The portfolio feels safe and sleep comes easier. That comfort has a potential price tag — roughly $39,000 a year in foregone returns. How do we reach this number?