Matt takes a walk through the interest rate environment of the past several years, from the near-zero rates of the COVID era to today's rates hovering nearer the historical average. Matt explains how the policy decisions of 2020-2021 (and before) suppressed interest rates, sending them steadily downward. During this period interest rates were predictable -- they would go down steadily -- and retirees looked to equities to produce income for their portfolio.

Today the market looks quite different. With the 10-year treasury around 4% (as of January 2026), fixed income is a viable asset for generating income again. However, interest rate volatility has re-entered the picture. When rates were near zero, the risk of interest rates moving sharply downward or upward was neglible, so interest rate risk could essentially be ignored. Now it's a material risk, so retirees must be careful in building their bond portfolio.

Matt explains how many retirees are still rooted in the thinking that made sense in 2020 and 2021, and that the market today presents new challenges. He outlines how bonds can be chosen and laddered to protect a portfolio against interest rate volatility, so that retirees can produce steady income for their portfolio while being hedged against rates moving up or down in the future.

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