Retirees Weigh Risk of Investing in Volatile Bitcoin

Financial experts Suze Orman, Clark Howard, and Dave Ramsey have differing opinions on whether Bitcoin is a good investment for retirement. However, they all agree that retirees should only invest money they can afford to lose.

In an episode of The Ramsey Show, a caller named Maggie expressed her desire to cash out her portfolio for cryptocurrency, but Dave Ramsey cautioned her about the risks involved in the crypto market, stating it's 'a lot darker than the stock market.'

Suze Orman has a more favorable perspective on Bitcoin, saying she had 'a little bit of confidence that Bitcoin is going to go up,' but emphasized that investors should only put money into Bitcoin that they can afford to lose. Clark Howard takes a firmer stance against Bitcoin, labeling it as a 'speculative event' rather than an investment.

For retirees who rely on selling Bitcoin each month to cover living expenses, a 25% market drop may be particularly damaging. This is due to sequence-of-returns risk, which shows how the timing of gains and losses affects a retiree's savings.