What is a Hurdle Rate? - Money Matters with Ken Moraif

In this episode of Money Matters, Ken Moraif discusses how retirees and pre-retirees can evaluate investment risk using a retirement planning concept called the “hurdle rate.” He also reviews key factors to consider when deciding when to claim Social Security benefits, explores market history and sequence-of-returns risk, and explains why estate planning can be important for individuals and families of all wealth levels. The discussion is intended for educational purposes and highlights considerations that may be relevant when developing a retirement and estate planning strategy. Chapter Markers: 00:00 Introduction & Episode Overview 01:12 Today’s Topics: Risk, Social Security, Market Risk & Estate Planning 04:29 Personal Story: Meeting Toby the Maine Coon Kitten 06:22 What Is the Retirement “Hurdle Rate”? 07:15 Step 1: Calculating Retirement Expenses 08:26 Step 2: Identifying Retirement Income Sources 09:36 Step 3: Determining Your Retirement Income Gap 10:15 Calculating the Hurdle Rate 11:29 How the Hurdle Rate Influences Retirement Planning Decisions 12:13 Using the Hurdle Rate to Determine Portfolio Risk 13:54 Retirement Planning Resources & Advisor Support 14:36 Social Security Basics: When Should You Claim? 16:16 Claiming Benefits at Age 62 17:25 Claiming Benefits at Full Retirement Age 17:34 Claiming Benefits at Age 70 18:45 Reasons Some Individuals Claim Benefits Early 20:19 Reasons to Wait Until Full Retirement Age 21:48 Reasons to Delay Benefits Until Age 70 23:49 Why Social Security Decisions Can Be Complex 25:20 Understanding Sequence-of-Returns Risk 26:06 The Buy-and-Hold Discussion 26:45 Why Market Timing Matters Near Retirement 28:08 Historical Market Example: Japan’s Market Recovery 29:11 Historical Market Example: The Great Depression 30:13 Historical Market Example: The Dot-Com Decline 31:05 Historical Market Example: The 2008 Financial Crisis 31:36 Retirement Planning Goal: Making Assets Last Through Retirement 32:49 Risk Management and Portfolio Protection Considerations 35:00 Estate Planning Overview 35:48 What Is Estate Planning? 36:53 Understanding What Makes Up Your Estate 38:03 What Happens Without an Estate Plan? 39:06 Planning for Incapacity and Healthcare Decisions 40:24 Why Estate Planning Matters in Retirement 41:47 Helping Loved Ones Through Advance Planning 42:59 Final Thoughts & Resources for Retirement Planning 43:33 Closing Remarks Advisory services provided by RPOA Advisors, Inc. (d/b/a Retirement Planners of America, "RPOA"). This content is for general educational purposes only and is not investment, tax, or legal advice. Opinions expressed are those of Retirement Planners of America and should not be relied upon as a recommendation. The Invest and Protect Strategy is not guaranteed and does not protect against all losses: it relies on a sell signal that can incorrectly predict a market decline, is subject to adviser discretion, may involve transaction costs and tax consequences, and may reduce total and average annual return over the long term compared with a static allocation. Past performance does not guarantee future results. ©Copyright 2026