Retirement Talk Radio's Podcast

January ended up being a pretty volatile month in the market. With inflation, geopolitical tension, and rising interest rates we may see more volatility in the near future. What is the danger this poses to our retirement? A fear of outliving your money coupled with recency bias can lead to an unbalanced portfolio. Portfolio failure, running out of money in retirement, is directly related to volatility. However, there are tools and strategies to navigate a choppy market.  Think of standard deviation as a relative risk rating. Lower standard deviation means lower risk or volatility. Using a Monte Carlo simulation spreadsheet, we can forecast the probability of potential failure rates. We have to examine how much risk you are taking in relation to the return you need for a successful retirement. You want to build a plan with the highest probability of success.  How could you still go broke in your portfolio with a 20% return?  If we have two portfolios and put a million in each:   Say Portfolio A made 60% the fi