The equity rout of the past 18 months has done damage in its own right. But a singular focus on market volatility has consequences far beyond the day’s open and close. As Ed Lotterman writes in the Pioneer Press, low interest rates are killing retirement accounts, something few boomers are hip to.
“The problem is not the drop in asset values. We put our money where my mouth was by mid-2007, after having opined for years on the unsustainable trends underpinning the U.S. economy, and moved the last of our funds out of equities. So we have not lost anything in the stock market.