Federal Reserve actions hurt retirees

[mathjak107]

any time anyone bets on one asset class no matter what it is they will hit a time that is bad for that asset class.

cash is an asset class.

cash instruments have had negative real returns at times through history.

the fed did everything but drop leaflets from helicopters warning folks about rates.

all a risk adverse person had to do is slide over to treasury bonds and they would have made a killing in capital gains.

those that paid the price by thinking they were avoiding risk found out out how wrong they are and risk cannot be avoided no matter what the asset.

those who did the correct thing and diversified did okay just because of those low rates.

 

[clifp]

any time anyone bets on one asset class no matter what it is they will hit a time that is bad for that asset class.

cash is an asset class.

cash instruments have had negative real returns at times through history.

the fed did everything but drop leaflets from helicopters warning folks about rates.

all a risk adverse person had to do is slide over to treasury bonds and they would have made a killing in capital gains.
.

Sure most board members were well aware of what was going on. But as I said most everyone on the forum is an investor. 70% of American don't know that if interest rates fall bonds increase in value. So telling them interest rates are going to fall and "remain low for an extended period of time", is of no benefit because they don't know what to do. I doubt 10% of the public would know how to buy a treasury bond if you stuck a gun to their head.

 

[mathjak107]

sadly you are right. once again it all boils down to ones own financial ignorance put them on the path to committing financial suicide , not the fed.

 

[mickeyd]

The government screwing with the economy is just another reason to save/invest as much as possible along the way. That's the only thing you can really control.

I read about folks that are concerned about saving too much and I just scratch my head...