Arguably the single most vexing problem in investing today is meeting the income needs of retirees. With interest rates still stubbornly hanging near all-time lows, generating sufficient income from a retirement nest egg is nearly impossible for many, especially if using traditional fixed-income vehicles like bonds.
That doesn’t mean low interest rates are bad for all retirees. Those with lower levels of wealth have been largely unaffected because they have little or nothing to invest.
As Renee Haltom of the Federal Reserve Bank of Richmond states, “People over 60, in the bottom 40 percent of the wealth distribution, tended to hold no more than $3,000 in financial assets, yielding less than 1 percent of their total income.”
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