Fixed Not Enough

With all the interest cuts the Feds have made since last summer, we are really feeling it.

I understand the rates were cut for a few reasons including inflation and fear of recession. The pain is felt in bank savings and money market funds and bonds. To find the balance, many in retirement are hurting. They rely on their bank savings, CDs, and other fixed income investments.

With the large decreases in the prime rate, retirees loose out on the fixed $ they count on.

Our money market fund was paying just under 5% a year ago and now is paying less than 2%. It's making less than half what it was.

We live in the western suburbs of Chicago. Our real estate taxes went up again. They usually do. We know they are headed much higher over the next few years due to high school expansions and upgrades.

Our neighbors on fixed incomes do not have fixed expenses. With gas and groceries rising and property taxes fixing to take a big step up, the crush hits the elderly first and hardest.

'til later