The promise of better returns on savings
The Federal Reserve lowered the federal funds rate to a range of 0 percent to 0.25 percent in December 2008. The central bankers have raised it three times since, most recently in March 2017 to a range of 0.75 percent to 1 percent.
Rates on certificates of deposit (or CDs), money market accounts and savings also have stayed low.
The result has been devastating for retirees counting on safe, fixed returns, says Michael Rubin, founder of Total Candor, a financial planning education firm based in Portsmouth, New Hampshire.
"They're earning a lot less on their savings than any other time in recent history," says Rubin, author of "Beyond Paycheck to Paycheck."
However, even getting a 1 percent return has been preferable for retirees, says Alan Moore, a financial planner and co-founder of XY Planning Network in Bozeman, Montana.
"When the stock market takes a dive, (retirees) don't want to be in the position of having to sell stocks to fund their lifestyle," he says.
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