Tag Archives: Interest rate

How Retirees Should Approach Interest Rate Hikes

It’s difficult to predict whether or not interest rates will rise this year. If you’re retired and risk-averse, then you’re probably not living high on the hog from a savings standpoint. Did you know that the average savings yield in the first quarter of 2015 was a measly 0.09%? For someone in retirement, that won’t be enough income to live off of. Actually, for most retirees it wouldn’t even be enough to go out for a nice dinner once per year. According to Swiss Re (a Swiss insurance company), since 2008 approximately a half-trillion dollars has been lost in interest income due to low interest rates.

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No, Ben Bernanke Doesn’t Hate Savers

Official portrait of Federal Reserve Chairman ...
Official portrait of Federal Reserve Chairman Ben Bernanke. (Photo credit: Wikipedia)

Fed critics say the central bank’s loose monetary policies are bad for savers. It’s a criticism the public has heard over and over again. For the past four years the Federal Reserve has kept interest rates near zero and has bought trillions of dollars in mortgage-backed securities and treasuries to give the economy a needed boost. Still, Senator Bob Corker of Tennessee has accused Fed Chief Ben Bernanke of “throwing seniors under the bus.”

 

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