Quote:
Originally Posted by metreon  Why? Alternatives offer better returns at the price of greater risk. Therefore your statement short-sightedly ignores the total cost of an investment.
Banks are intended to be havens from risk, so people placing their money there are doing so for a reason. Elderly can not rely on long-term average returns on their capital, since they can not forecast when a medical emergency or such might require a short-term need of it. |
obviously, if someone is so stupid they put more than $100,000 in an account insured for only $100,000, they are too stupid to understand the simplicity of diversified income generating investments
there are plenty of diversified low risk instruments with modest returns that far surpass simple interest
hell a simple 8% return on $500,000 yields $40k / year
plenty to live on in retirement, in comfort with perks like occasional travel
if not, they should not have retired yet
you dont retire when you have a mortgage
you dont retire with credit card debt
and got some news for you, if you are expected to live for atleast 10 years more, you need to have some diversified aggressive investments
personally i dont see any reason to ever fully retire
unless of course one can no longer work, but than i guess that is not quite retirement either