It is very hard for most of us to remember the days when your savings could safely grow via double digit interest rates. In the 1980’s you could generate 18%, in the 1990’s 8%. Today? How does 1.05% for a 1 year CD sound?
18% wow. Hey, if you had just $200,000 in savings you would have generated $36,000 per year in cash and add that to say $25,000 in Social Security and you could live real well in Mexico on an annual income of $60,000. I know you can do math. But, I like this one. if you had $1,000,000 in retirement savings then your bank or bond would send you $180,000 per year. Now we are talking France.
Today? Nada baby. Assuming a 2% rate of inflation you are way screwed if you have moved a good chunk of you dough into under 2% yielding fixed income securities. You are running a negative program.
Could the Fed’s monetary policy be killing people? All I know is that suicides by Baby Boomers 65+ is on the increase.
So cool…
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