For retirees, an interest rate cut takes a bite out of 'safe money' returns on savings accounts and certificates of deposit. Chasing returns in the market might seem tempting, but here's why you should avoid that.
The possibility of having those rates reduced is a scary one for retirees, and it may nudge them into chasing returns to sustain their standard of living.
"Retirees who have taken more risk got away with it due to the long bull market, but when will it catch up?" he said. "Because at some point it has to."However, advisors are feeling cautious as of late, worrying that an economic downturn might be around the corner. Essentially this means investors holding longer-term U.S. debt are being compensated less compared to those holding shorter-term issues.A gut checkAdvisors working with retirees and near-retirees are discouraging them from chasing riskier returns.
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