Most retirees understand market risk—but far fewer grasp the danger of safety risk. That’s the risk of losing purchasing power because your “safe” money isn’t keeping up with inflation. In this week’s podcast episode, financial planner Leibel Sternbach pulls back the curtain on why going all-in on cash or annuities can quietly drain your nest egg and what you can do to stop it.

Cash Isn’t Really King After You Stop Working

“It looks like your bank balance never falls, but the dollars inside that account buy less every single year,” Leibel explains. The Consumer Price Index averaged roughly 3 percent annually over the past 30 years. At that pace, $10,000 in a savings account effectively shrinks to about $7,400 in buying power after a decade. You don’t see the number fall—but you feel it every time you shop for groceries, fill a prescription, or book a flight to visit family.

The Double Whammy of Inflation + Market Volatility

Retirees are especially vulnerable because they’re simultaneously withdrawing assets for income. If you’re forced to tap your portfolio during a market downturn, you lock in losses. Layer persistent inflation on top and you risk running out of money decades earlier than planned. “The biggest danger isn’t losing 50 percent in a crash; it’s withdrawing when markets are down and prices are up,” Leibel warns  .

Why One-Size-Fits-All Annuities Fall Short

Fixed annuities can provide guaranteed income, but many lock you into low rates that fail to outpace inflation. Variable and indexed annuities add market exposure yet often come with complex riders and high fees. That doesn’t mean annuities have no place; it means they shouldn’t be your entire plan. Diversification matters even inside the “safe” bucket.

A Smarter Way to Grow “Safe” Money

Leibel created the YFYA ETF to target higher yields from a diversified basket of income-producing assets while keeping volatility low. “We were the first to file an all-income ETF strategy,” he notes, “because retirees needed an option between a savings account and full-equity risk.”  

You don’t need to own that specific fund, but you do need a plan that:

1. Beats inflation—aim for returns at least 2 percent above CPI.

2. Manages sequence-of-returns risk—so you’re not forced to sell low.

3. Provides liquidity—cash reserves for 6–12 months of spending.

4. Aligns with your timeline—growth for long-term needs, stable income for today.

Action Steps You Can Take Now

• Audit your cash holdings. Calculate how much you truly need for emergencies, then put the excess to work.

• Review annuity contracts. Understand fees, surrender periods, and how payouts adjust (or fail to adjust) for inflation.

• Diversify income sources. Blend dividend stocks, short-duration bonds, preferreds, and alternatives that can cushion volatility.

• Stress-test your plan. Model scenarios with higher inflation and lower returns to see how long your money lasts.

Your Next Move

If you’re unsure whether your current strategy can keep pace with rising costs, don’t leave it to chance. Schedule a complimentary consultation with Leibel Sternbach today and get a personalized roadmap to safeguard—and grow—your retirement income.

👉 https://www.yields4u.com/pages/book

Retirement should be a time to enjoy life, not worry about every dollar. With the right balance between safety and growth, you can stay ahead of inflation and live the retirement you’ve worked so hard to achieve.