Paul Shlichta / American Thinker
It's hard enough being old, with your faculties declining as you become a prime target for scammers and hucksters. But to make matters worse, you are also being cheated and persecuted by your own government.
I don't think "persecuted" is too strong a word. The present Democratic regime is throwing you under the bus, in favor of the young (and often unemployed) voting groups that they depend upon to keep them in power. And as to "cheating", bankers and financiers, whose ranks include greedy pillagers of retirement funds, are being joined by the government itself, which has developed its own methods of cheating.
To begin with, you are probably aware that the nest-egg you saved is being undermined by inflation and lowered interest rates. But let's consider how much and why this has happened, by doing some arithmetic.
Let S equal the best available FDIC-guaranteed interest in savings or CDs. Let F be the inflation rate. Therefore, in the course of a year, your savings account increases in dollar value by a factor of (1+S) but, because of inflation, the value of those dollars decreases by 1/(1+F). Therefore, the actual value of your account changes each year by
(1+S) / (1+F) = 1+R
where R* (the Retiree Equity Normalized Accrual, or RENA index) is the rate at which the actual value of your account is increasing or decreasing. Thus, if R is positive, say 5% or more, you may derive a decent income from your savings. But if R is negative, as it has been for several years, your retirement account is steadily losing value. Here are some sample figures:
Read more at American Thinker:
http://www.americanthinker.com/2014/01/obamas_war_against_the_elderly.html#ixzz2pdDl2UKS
Follow us: @AmericanThinker on Twitter | AmericanThinker on Facebook
No comments:
Post a Comment