Texas Family Benefits specializes in individual, Medicare, and group health insurance in Houston as well as throughout the state of Texas.

Low Yields On Savings Here for the Long Term

By admin on November 15, 2012 | Listed under Life Insurance | 1 Comment |

The end of the yield famine is far away” is the title in Scott Burns column in the 11/07/2012 Houston Chronicle.

He gets into a topic that should be on all peoples mind. The fact that there is too much debt.  This fact will have some long term consequences for all savers. It is good for people who need to and can barrow. But it will be a problem for people with savings, especially people who are older and trying to live off of savings.

I am worried we (the USA) will have some long term problems, similar to Japan starting in the 1980’s where Japans economy went into a deflation period. Where interest rates (i rates) were pushed down to about zero and stayed there for many years.

I do not write about economics per say. But when dealing with insurance, you cannot avoid the subject. I do not consider myself an expert on the subject but have spent a lot of time in school and in my work life on economic topics.

We all need to spend some time looking forward in time to help us plan.

This column distills down this large topic and we all need to think and try to plan for our family’s and loved ones.

There has always been a need to plan for your future, I think it is truly harder in this interest rate  environment. Intrest rates are low and will probably stay low for awhile.  However inflation is not gone. The specter of inflation “steals” from savers.

Related Articles 

chron.com-Scott_Burns yield_famine_is_far_away_2012_11_07

AssetBuilder -Scott BurnsThe End of the Yield Famine Is Far Away _2012_11_02

Inflation  from Wikipedia

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One Comment - Add Yours!

  • Herb Firestone posted on November 15, 2012 at 12:31 pm | Permalink

    For me as a future retiree, (keep in mind that we’re all future retirees) two solutions to low interest rates have been insurance company annuities and growth and dividend mutual funds. The problem with those, however, as clearly demonstrated over the past two weeks, is that your principal can just as easily go down as it can go up.

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