Quote Of The Week: “Savers Still Feel The Pain”

piggy bank empty 4How much are you making on your  bank savings accounts? Try 0.16%.

That’s what is being paid on average across the U.S.

That skimpy rate is inflicting pain on American retirees and other savers.  They’ve given up almost half a trillion dollars in earnings over the recent years, as a result of low-rate policies. Here’s what Janet Bodnar of Kiplinger’s Personal Finance magazine has to say:

“The Fed’s seven-year-long policy of keeping short-term interest rates near zero has meant lean years indeed for savers. A study by the Swiss insurance firm Swiss Re estimates that the Fed’s policy has cost U.S. savers $470 billion – and that’s after factoring in the effect of lower rates paid by borrowers.”

Janet Bodnar, Editor, Kiplinger’s Personal Finance, June 2016

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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