May Monthly Insight: Retirement Investing Ideas, Bond Roles, Private Credit, and Healthcare Costs
Last week we held a webinar on Retirement Investment. We talked about the pros and cons of different investment strategies. We also talked about two frameworks --three buckets and income pyramid strategies to manage five big risks in retirement.
There is no single plan that fits everyone. We want you to see tradeoffs clearly so you can pick what fits your goals.
Below are a few topics clients have asked about lately.
Bonds: Do You Own More Than You Think?
In March, worries showed up—things like energy prices and inflation. When stories like that shift, many bond funds can stumble together.
Bloomberg U.S. Aggregate Bond Index (a big basket of investment-grade U.S. bonds) had a 2.0% drawdown in March, 2026 from a previous peak. Its total return this year is 0.05% as of 5/5/2026.
Bonds outside the U.S. also faced pressure due to strong U.S. dollars. If you own bonds mainly to steady your account and to fund spending, ask whether your bond mix still matches that job.
Learn more on Your "Safe" Bonds May Not Be as Safe as You Think
Private Credit News: Should People Panic?
Lately, some retail investors have asked to withdraw more money than usual from private credit investments. Private credit means loans made outside the traditional public stock and bond markets.
There’s been a lot of overheated headlines and misinformation on private credit. It’s important to understand the facts.
Myth: Private credit will create the next financial crisis.
Fact: Today’s private credit market looks very different from 2008.
Before the global financial crisis, many banks were highly levered, in some cases 25 to 40 times assets to equity, according to a July 2009 GAO report on financial markets regulation. Some underlying mortgage assets had very high loan-to-value ratios, and complex derivatives made the risks harder to see.
Put simply: 2008 involved risky loans inside highly levered vehicles, funded by money that could disappear quickly.
Based on industry data, we generally have seen relatively low levels of fund level leverage, with debt-to-equity ratios of 0.8x or below. This is well below a typical target leverage ratio of 1.0x and the maximum regulatory cap of 2.0x. Lower leverage ratios can mitigate the downside scenario where fundamental credit deterioration leads to negative realized performance. They also do not rely on deposits or overnight funding in the way banks did before 2008.
That does not mean private credit has no risk. Loan quality, leverage, liquidity terms, and manager discipline still matter. But the broad claim that private credit is “the next 2008” oversimplifies the facts.
Healthcare costs: Medicare Does Not Pay for Everything
For many older households, healthcare is the second-biggest spending line after basics like housing.
Still, the Insured Retirement Institute (August 2021) found about four in ten people believe Medicare will cover almost all healthcare costs. That belief usually does not match real bills.
Reports tied to MedPAC work often say Medicare pays roughly two-thirds of healthcare costs for many people on traditional Medicare—after counting premiums and sharing rules. What is left can still bite:
Monthly costs you pay for coverage
Care Medicare skips (often routine dental and much vision)
Drug copays
Long-term care (help with daily tasks over many months or years)—often not what people picture when they say “Medicare”
One research group, EBRI (January 2024), published estimates others round to about $351,000 in future dollars for medical costs for an average healthy 65-year-old couple—not counting long-term care.
Simple takeaway: Treat healthcare like any big bill in retirement—guess a range, plan for prices rising, learn Medicare signup rules (including IRMAA income brackets), and fold premiums into your monthly cash plan alongside housing, taxes, and portfolio withdrawals.
learn more on What Medicare Doesn't Cover in Retirement (2026 Guide)
Roth Conversion Gap Years Strategy: Avoid IRMAA & Capital Gains Tax | 2026 Guide
If any of these topics are on your mind, book a meeting with us. We are glad to be of good resource for you.
Disclaimer: Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
The Bloomberg U.S. Aggregate Bond Index is an index of the U.S. investment-grade fixed-rate bond market, including both government and corporate bonds.
There is no guarantee that the Business Development Company (BDC) will achieve its investment objectives. Investing in private equity and private debt is subject to significant risks and may not be suitable for all investors. These risks may include limited operating history, uncertain distributions, inconsistent valuation of the portfolio, changing interest rates, leveraging of assets, reliance on the investment advisor, potential conflicts of interest, payment of substantial fees to the investment advisor and the dealer manager, potential illiquidity and liquidation at more or less than the original amount invested.
Sources:
https://curvo.eu/backtest/en/market-index/bloomberg-us-aggregate-bond?currency=usd#chart
https://corient.com/us/en/insights/articles/our-perspective-on-private-credit
Retirement Readiness Among Older Workers, IRI Retirement Readiness Research Series, Insured Retirement Institute, 8/31/2021
Medpac, July 2022 Data Book: Health Care Spending and the Medicare Program. Total spending on health care services for noninstitutionalized fee-for-service Medicare beneficiaries.
Employee Benefit Research Institute, Issue Brief, no. 599, January 18, 2024
