From a John Curran post over at The Curious Capitalist, we get a glimpse at what the fixed income giving tree has to offer the savers and the elderly who are attempting to live on a fixed income.
And it reads like the Brunch Menu in Financial Hell…
Here’s a sampling of some current yields on Bankrate.com and the Wall Street Journal site:
Money market accounts: 0.75%
One-Year CD: 1.32%
Six-Month T-Bill: 0.195%
One-year T-Note: 0.261%
Five-Year T-Note: 1.616%
Ten-Year T Note: 2.959%
So a full 2 years after the most reckless among us cracked a hole in the universe with leverage and fantastical quantitative assumptions and still we punish the savers. Still we punish those among us who are the least guilty and the most vulnerable with absurdly low yields on what they thought would be bread-and-butter retirement investments.
Take full measure of that 10-year yield. It’s asking you to give the U.S. Government a big chunk of your money for a decade—the same U.S. Government that’s been printing money faster than it can count—in return for a yield that is under 3%. Thank you, but I’ll pass.
Josh here, I have a little advice for Washington and the dithering incumbents who face judgment at the upcoming midterms:
What you need to know about old people is that they actually vote. A lot.
Not like college kids who get excited every few decades when someone belches the word “Hope” in their general direction. Old people really vote. Early and often. They vote in local polls and national elections and everything in between.
Is there a solution to their plight? I’m certain we can find one that falls somewhere in between having them sell all of their heirlooms or forcing them to do that reverse life insurance thingie. Heaven forbid someone gets a bit creative – perhaps a specific series of government bonds for investors of a certain age or a certain personal savings rate. No one is looking for a jacking up of Fed Funds rates, but how much longer can this punishment continue?
So keep stiffing the seniors, we’ll see what happens come November.