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View Diary: If 80% of us are in or near poverty than THERE IS NO MIDDLE CLASS. (83 comments)

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  •  I remember when Passbook Savings (2+ / 0-)
    Recommended by:
    splashy, peregrine kate

    Accounts paid over 7 percent. Of course, that was back in the dark ages--I mean the 1970s.

    At this point people who save money and seniors trying to live off the income from their savings are being killed by the Fed's Zero Interest Rate Policy. So the only way of making anything is by risking your money in the stock market and that's not something that older folks like me should be doing--it's just to risky.

    So not only would a person have to save $100 per day from their paychecks to accumulate $1M they would barely make enough in yearly interest to put a down payment on a new car.

    I figure that in order to live off your interest the way people were able to do at one time, you'd have to have at least $10M in the bank.

    The only trouble with retirement is...I never get a day off!

    by Mr Robert on Mon Sep 16, 2013 at 02:26:44 PM PDT

    [ Parent ]

    •  my broker had it pegged at $3M (2+ / 0-)
      Recommended by:
      Mr Robert, splashy

      assuming that the individual lived frugally, received $2K/month in SS and invested in munis at 4%.  (which are about the only "safe" investment left)
      You have to remember FDIC only insures to $250K should there be another run on the banks and $10M makes for a  lumpy mattress

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