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Retiring at 50 is a dream for many working Americans, but in order for that to happen you have to either be really luck or start early and do plenty of planning along the way. It is actually possible, however, which begs the question — how much money do you actually need? The answer, it turns out, isn’t so simple.

Today’s investors face unique challenges. High inflation is eroding portfolio value, market volatility has made it more difficult than ever to predict returns and manage risk, and interest rates on bonds and savings accounts are historically low, weakening the power of traditional diversification tools. Faced with these issues, some investors are seeking alternatives to traditional assets to strengthen their position. The following are some that are available today.

There are many downsides to high interest rates, but one bright side is that elevated rates can make it easier to earn more money on your savings. For example, certificate of deposit (CD) interest rates and other interest-bearing account rates are closely linked to the federal funds rate. As a result, when the Federal Reserve raises the benchmark interest rate, most banks and credit unions raise rates on savings accounts, money market accounts and CD accounts.

The Federal Reserve continued its rate-cutting campaign Wednesday, Dec. 18, marking the third cut of 2024. The central bank shaved off another 25 basis points from its benchmark rate, in line with expectations.