In our second episode, Chad Castle and Jessica Burch break down the two types of risk in retirement planning - short-term (market volatility) and long-term (inflation).

Most investors are aware of short term market volatility - it makes for great headlines in the financial media and can often cause investors to be too active when it comes to making changes to their portfolio.  Remember, your investments can be like a bar of soap - the more you touch it, the less you have.  Historically, the more you "zoom out," the market shows more straight-line growth.

Conversely, we have inflation - something that's been a big headline in 2022.  Often, retirees and pre-retirees want to be "safe" with their investments.   Being too safe, however, can lead to an erosion of your spending power due to inflation - especially at current rates of 6 or 7 percent!   A $100,000 portfolio may only get you $93,000 worth of goods and services at a 7% inflation rate.

Chad explains "The Rule of 72," a quick "back of the napkin" equation to measure your portfolio's growth - as well as inflation.

Solving for both of the risks - volatility and inflation - can be hard.   It depends largely on an investor's risk tolerance and your individual situation.  This is why the team at Winnow Wealth works to create an individualized plan for each client.

Contact Us:

Winnow Wealth Website: https://winnowwealth.com/

Winnow Wealth Phone Number: (254) 776-8400