Pre-Retirement
Cautious Carla
Hospital Administrator · Phoenix, AZ
$800k saved. 60% in cash. Terrified of the market — and of outliving her money.
About Cautious Carla
Carla watched her parents lose half their savings in 2008. She has been in cash ever since — 60% of her $800k portfolio sits in a money market account. She is 10 years from retirement and knows she is being too conservative. But every time she thinks about moving into stocks, she freezes. The model will show her what the cash drag is actually costing her.
Financial Snapshot
$150,000
Annual Income
$800,000
Net Worth
55
Age
Cautious Carla's Story — 2 Chapters
The Cash Drag
Carla's $480k in cash is earning 4.8% in a money market. The S&P 500 has averaged 10.5% annually over the past 30 years. She models the 10-year opportunity cost of staying in cash vs. a 60/40 portfolio vs. a 40/60 portfolio — the most conservative equity allocation she can imagine.
Uses: fireThe Inflation Threat(Coming soon)
Carla's money market is earning 4.8% — but inflation is running at 3.2%. Her real return is 1.6%. The model shows what happens to her purchasing power over 30 years of retirement if she stays in cash.
Uses: roth-vs-traditional