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Low Interest Rates Increase Retirement Costs
- Low interest rates increase retirement costs by requiring more assets to fund the same expenses.
- A million dollars at 5% interest yields $50,000, but only $10,000 at 1% interest.
Avoid Market Timing
- Avoid market timing; it's unpredictable.
- Stick to a consistent buy-and-hold strategy for better long-term performance.
Asset Allocation Based on Risk
- Consider both risk tolerance and capacity when allocating assets.
- Those less vulnerable to market downturns can afford more aggressive allocations.