- The low yields we have now increase the amount necessary for a comfy retirement nest egg.
- $500,000 is only estimated to last for a 13 year retirement. Most retirees will completely miss the mark.
- Avoid risky assets no matter how tempting might the yield be.
Last week we discussed the true cost of low interest rates with particular attention paid to pension funding. Many defined pension plans are underfunded, and it’s a situation that has to be dealt with now despite it being against human nature to think about a problem that will only arise in the distant future.
On top of the problems in defined pension funds, low interest rates have a detrimental effect on general pensions and your retirement. More →