{"id":12540,"date":"2012-10-01T08:30:19","date_gmt":"2012-10-01T13:30:19","guid":{"rendered":"http:\/\/ssgreenberg.name\/PoliticsBlog\/?p=12540"},"modified":"2012-10-01T08:32:40","modified_gmt":"2012-10-01T13:32:40","slug":"banks-record-low-interest-rates-frustrate-nations-savers","status":"publish","type":"post","link":"https:\/\/ssgreenberg.name\/PoliticsBlog\/2012\/10\/01\/banks-record-low-interest-rates-frustrate-nations-savers\/","title":{"rendered":"Banks\u2019 Record-Low Interest Rates Frustrate Nation\u2019s Savers"},"content":{"rendered":"

The Boston Globe<\/em> has the article Banks\u2019 Record-Low Interest Rates Frustrate Nation\u2019s Savers<\/strong><\/a> on its front page today.<\/p>\n

Neil Silverman, a Framingham engineer, diligently saved for decades, accumulating a nest egg worth more than $1 million.<\/p>\n

But when Silverman reached retirement age, he encountered an unexpected hurdle: interest rates so low that his savings are generating little income. Even $1 million in the bank at 1 percent interest yields just $10,000 a year \u2014 not much to live on.<\/p><\/blockquote>\n

In my reaction that I posted on the web site of The Boston Globe<\/em>, I said:<\/p>\n

What is a retiree with over $1million\u00a0 nest egg doing investing in CDs?\u00a0 With high quality companies with decades long records of paying increasing dividends now paying at rates from 3 to 5%, that $1million could bring in $50,000.\u00a0 Along with Social security, Silverman could be taking in $70,000 per year, and the increasing dividends would also lead to capital gains.<\/p>\n

Just shows that the idea of people taking care of their own retirement investments is not such a good idea even for people as smart as a retired engineer.<\/p>\n

I am a retired engineer also.\u00a0 My nest egg is almost back to pre-2009 levels and I have been living off the income from this nest egg for over 6 years.<\/p>\n

They say that the worst thing that can happen to your retirement savings is to have a severe loss of value in the first years of your retirement.\u00a0 Well, that is exactly what happened to me.\u00a0 However, my diversified portfolio of high quality, dividend paying stocks has kept my income at a comfortable level quite independent of the current market value of my stocks.<\/p>\n

Maybe the Globe could do all retirees a favor by researching and then explaining how this type of strategy works.\u00a0 I’d be glad to help the Globe, if they were interested.<\/p><\/blockquote>\n

Since the subject of the article lives in Framingham, maybe I should have mentioned my cousin in Framingham who could do an excellent job of explaining the investment strategy that I mentioned.\u00a0 He is a better practitioner of that strategy than I am, and I am doing well enough with the strategy to be satisfied.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Boston Globe has the article Banks\u2019 Record-Low Interest Rates Frustrate Nation\u2019s Savers on its front page today. Neil Silverman, a Framingham engineer, diligently saved for decades, accumulating a nest egg worth more than $1 million. But when Silverman reached retirement age, he encountered an unexpected hurdle: interest rates so low that his savings are […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[166],"tags":[],"class_list":{"0":"post-12540","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-stevegsposts","7":"czr-hentry"},"_links":{"self":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/12540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/comments?post=12540"}],"version-history":[{"count":2,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/12540\/revisions"}],"predecessor-version":[{"id":12542,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/12540\/revisions\/12542"}],"wp:attachment":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/media?parent=12540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/categories?post=12540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/tags?post=12540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}