Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts
Back to Budgeting and Taxes

The Biggest Loser: Low Interest Rates Crush Retirees

Thursday, August 11, 2011 - 11:02 AM
From Moneyland | TIME.com
When Fed Chief Ben Bernanke said he would hold short-term interest rates near zero for at least two more years, the stock market whooped it up — at least for a day. In the middle of the celebration, though, millions of retirees about keeled over.

The prospect of even lower yields on money market funds, bank CDs, Treasury securities and longer-term government and corporate bonds – where many retirees dutifully keep their savings – is crushing news for anyone on a fixed income. Folks who have saved diligently and put their money in safe, short-term investments to secure an income stream for their later years probably deserve a better fate.

[Read more...]
8
WhataBummerWhataBummer413 posts since
Oct 15, 2010
Rep Points: 1,702
1. Thursday, August 11, 2011 - 11:18 AM
Found this quote at the end of the article interesting:
You may not like hunting for income in the stock market. But for most retirees the sure-things just won’t do anymore.

I would be interested to know if anyone has decided to move some of their money to stocks or bonds.
1
Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
Rep Points: 123,675
2. Thursday, August 11, 2011 - 12:54 PM
Market-timing is tough. As lousy as CD rates are right now, I'm not planning to change my AA. Ill no doubt just let my 5-year CD maturing the end of this month roll-over.
2
BozoBozo135 posts since
Feb 14, 2011
Rep Points: 917
3. Thursday, August 11, 2011 - 4:23 PM
From Moneyland | TIME.com
In the middle of the celebration, though, millions of retirees about keeled over.


Maybe that's the secret plan? A scheme devised to save Social Security? *@#^@*&^#%@&*^%
1
darkdreamer4udarkdreamer4u174 posts since
Jun 11, 2010
Rep Points: 630
Reply