Rock-bottom returns on bonds and bank deposits have left many retirees with little choice but to spend down principal. About all wealth managers can do is to recommend an orderly approach – better to lose a little each year rather than reach for high yield by investing in shaky IOUs or outright scams that result in larger losses. (Adv.: One of the most helpful publications I've seen on the subject is Merrill Anderson's Managing Your Assets in Unsettled Times.)
Back in the late 1970's, retirees saw their nest eggs down-sized by double-digit inflation. (See the graph in the U.S. Trust ad below.) Now they must spend down their assets because government policy penalizes savers by giving borrowers a nearly free ride.
Weren't we all supposed to be deleveraging?
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Graham's Bowley's name seemed vaguely familiar, but not as a financial reporter. Turns out he's the author of "No Way Down: Life and Death on K2."
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