tag:blogger.com,1999:blog-626594980028435818.post4913622635681683850..comments2024-03-28T05:14:44.500-04:00Comments on Sightings Over Sixty: What Do Interest Rates Mean, Anyway?Tomhttp://www.blogger.com/profile/08611148987085476580noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-626594980028435818.post-52312327169240252962015-09-23T07:53:54.068-04:002015-09-23T07:53:54.068-04:00I'd agree with Anon., too, except I don't ...I'd agree with Anon., too, except I don't know where he/she get the figures. At my major national bank, you do not get 2% on a CD. You get 0.35% for a three year CD, and 1% if you're willing to tie up your money in a ten-year CD. (Will I be dead by then?) As for Vanguard, you can only get 3% if you invest in a long-term bond fund, or a dividend stock fund -- both of which expose you to potential loss of capital. So, for me anyway, the conundrum of where to get some decent, safe income from our retirement savings remains unsolved. Until that changes, it's bread and water in our household!Tomhttps://www.blogger.com/profile/08611148987085476580noreply@blogger.comtag:blogger.com,1999:blog-626594980028435818.post-3346790705218374162015-09-23T05:06:40.439-04:002015-09-23T05:06:40.439-04:00Kisner's explanation and the formula for a sen...Kisner's explanation and the formula for a sensible retirement financial strategy given by Anonymous are both spot on.Gabbygeezernoreply@blogger.comtag:blogger.com,1999:blog-626594980028435818.post-71330541737718382892015-09-22T19:45:50.733-04:002015-09-22T19:45:50.733-04:00Hi Tom! I'm not sure I agree with everything ...Hi Tom! I'm not sure I agree with everything that your friend and advisor said. Unfortunately while I know that the government is keeping rates low to "stimulate" the economy, that seems to mostly be benefiting the banks because they get to "borrow" it and then turn around and lend it out and make a lovely spread for themselves. Meanwhile they have been stimulating real estate prices (which surely would not be as high as they are now if people didn't get extremely low rates to buy) and that is artificially raising prices. Here on the west coast prices are almost back to the crazy amount they were before the crash and instead of putting money into business and stimulating the economy, people with money are investing in real estate to "hold" the investment. Besides, didn't Japan try the -0- interest thing for a while and then have it blow up in their face? I think I agree with Olga above....Kathy @ SMART Living 365.comhttp://smartliving365.comnoreply@blogger.comtag:blogger.com,1999:blog-626594980028435818.post-43537326690209765992015-09-22T18:55:59.073-04:002015-09-22T18:55:59.073-04:00I enjoyed this clear explanation of the federal in...I enjoyed this clear explanation of the federal interest rate. I don't invest in the market and would prefer a decent interest rate, but that doesn't seem to be on the horizon.stephen Hayeshttps://www.blogger.com/profile/17659054447637207734noreply@blogger.comtag:blogger.com,1999:blog-626594980028435818.post-52605919731133363492015-09-22T18:13:28.960-04:002015-09-22T18:13:28.960-04:00i think currency wars play a large part in setting...i think currency wars play a large part in setting interest rates.billy pilgrimhttps://www.blogger.com/profile/00128876723713271131noreply@blogger.comtag:blogger.com,1999:blog-626594980028435818.post-280806400375960132015-09-22T12:08:38.937-04:002015-09-22T12:08:38.937-04:00I learned something new--really did not realize th...I learned something new--really did not realize the purpose of low interest rates. I cynically thought it was a plot to get rid of the middle class.Olgahttps://www.blogger.com/profile/00692441479616299920noreply@blogger.comtag:blogger.com,1999:blog-626594980028435818.post-77797661335628626952015-09-22T10:34:27.173-04:002015-09-22T10:34:27.173-04:00I don't now where you bank but I am getting 2%...I don't now where you bank but I am getting 2% on my CD's and 3% from Vanguard. All FDIC. Considering that I had a measly $10K as an experiment invested in the S&P 500, it had made $800 in profit plus 4 dividend payments over the year (approx $55 each). Today, all of that profit is gone, plus the dividends and some of my capital. In other words, a big loss as far as I am concerned.<br />Meanwhile, my little CD's keep chugging along, making me a little money and never, ever losing a dime.<br />As an ancient CPA once told me: better to make a little money than no money at all.<br />As soon as my ETF returns back to my original investment, it's outta there. To heck with paper profits and preposterous evaporating dividends.<br />PS: all my investments are ROTH IRA's (over the years) so no taxes are due.<br />Want to make money in retirement: get a part time job, sell something and/or keep lowering your expenses, keep yourself healthy and eat more vegan meals.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-626594980028435818.post-52595558973523644262015-09-22T08:15:36.002-04:002015-09-22T08:15:36.002-04:00Thanks for the information, Tom. I figured that Wa...Thanks for the information, Tom. I figured that Wall Street's volatility over possible minuscule amounts is trying to keep them from going up at all, like bullies threatening to take their marbles home if you don't do it their way. :-)DJanhttps://www.blogger.com/profile/07152183871573797791noreply@blogger.com