ZIRP and retirees' risk taking
Reader comment on: ZIRP
Submitted by Fred Van Bennekom (United States), Mar 13, 2012 17:35
It is stunning to me that none of the GOP candidates has raised the issue of ZIRP monetary policy on retirees and those nearing retirement -- especially in Florida. ZIRP has been in place for 3 years 1) to stimulate the economy and 2) to reduce the Fed's borrowing costs on our huge debt. But the downside is that retirees trying to live off of *gasp* investment income are getting zilch. That means they are going down the risk curve with their savings to generate some income. Taking on more risk during or near retirement goes against prudent financial management. How will this end? We'll see.
So because of the government's profligate spending, retirees must now take on more risk. I remember someone saying, "If you play by the rules..."
Note: Comments are moderated by the editor and are subject to editing.
Comment on this item