When the U.S. dollar weakens, many retirees worry about what it could mean for their savings. On a recent episode of her "Women & Money" podcast, Suze Orman addressed this concern directly after a listener named Bob asked how to protect his $1.4 million nest egg from a falling dollar.
Orman's response? "I wouldn't worry about it."
Here's why she thinks most retirees in Bob's situation are likely safe — and what experts are saying about the dollar's recent decline.
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A Listener With $1.4 Million Asks About the Dollar
Bob, 61, shared that he retired early due to illness and workplace stress, but he has built a strong financial foundation. He has $1.4 million saved, has consistently contributed to a Roth account, and even converted part of a pension payout into Roth funds. His main concern now is whether the dollar's falling value will hurt his certificates of deposit and money market accounts.
Suze Orman's Take: Everyday Costs, Not Investments
Orman explained that a weaker dollar impacts consumers in a few key ways:
- Travel abroad gets more expensive. A weaker dollar means U.S. travelers get fewer euros, pounds, or yen for their money.
- Imported goods may cost more. Since many everyday products rely on imports, their prices can rise when the dollar drops.
- Stocks may feel the pressure. A falling dollar can fuel inflation, which sometimes weighs on the markets.
However, Orman reassured Bob that his CDs and money market holdings are largely insulated. "It's not going to affect your actual investments when it's a CD or a Treasury," she said.
While acknowledging some risks, she concluded, "Out of everything that you have going on, boyfriend, I wouldn't worry about it."
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The Dollar's Steep Drop in 2025
The concern isn't unfounded. The U.S. Dollar Index, which tracks the dollar against major currencies, has dropped more than 10% this year — the sharpest first-half decline in over 50 years, according to JPMorgan Chase (NYSE:JPM).
JPMorgan Chase shares that several forces are at play:
- Policy uncertainty. Markets have reacted to debates around tariffs, fiscal spending, and even the independence of the Federal Reserve.
- Slower U.S. growth. Forecasts for 2025 have been revised down from 2.3% to 1.4%.
- Global capital flows. Investors are putting more money into European markets after years of strong U.S. returns, weakening demand for dollar-based assets.
Despite this, JP Morgan notes that the dollar remains the world's most trusted reserve currency and says its status as the backbone of global finance is unlikely to change soon.
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What Retirees Should Keep in Mind
For retirees like Bob, the bottom line is that most dollar weakness shows up in higher travel costs and pricier imports, not in the safety of U.S.-backed investments such as CDs and Treasuries.
Financial experts often recommend diversification, including international assets, as one way to hedge against dollar cycles. But for those primarily living on domestic savings and income, the direct impact of a weaker dollar is usually limited.
As Orman emphasized, Bob's years of disciplined saving and smart Roth conversions mean his financial foundation is solid. In her words, he has already learned how to "make his money make more" — a lesson many retirees can take to heart, no matter what the dollar does next.
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