People counting on interest from investments, and especially retirees living on Social Security supplemented by interest income, are feeling the squeeze of lower interest rates projected to last two years.
In a front page article, the Wall Street Journal on August 22, 2011 included an informative discussion recognizing that borrowers benefit but savers suffer as interest rates fall. The news from Federal Reserve Chairman Ben Bernanke that interest rates are to be rock bottom for two more years is bad news for seniors who can’t afford risky investments and are learning that they can expect only meager returns on fixed income investments over at least the next two years.
As Seniors and their Baby Boomer children seek for the parents to be able to age at home as long as possible and to be able to afford long term care if it is needed, early planning becomes even more important. Hall and Hall’s Richmond elder law attorneys regularly help clients who are looking at the possible need for long term care in the future and seeking to develop the best legal plans for preserving their assets and paying for the costs of long term care.