Our money should be working for us, not the bank
I announced the creation of the blog Senior Scoops in a couple of “Retirement” communities, on FaceBook and Reddit this past Saturday morning at about 10 am. Here is the post.
“I and a couple of others have an idea for a blog. It is for those who entering their golden years with less than 7-figure retirement. it is a “work in progress” and we would love some feedback and possibly post ideas. Any advice would be appreciated. Thanks”
To be honest, our hope at the time was to garner a few hundred views so Google would take notice and begin indexing our site.
Your reactions amazed me, There were hundreds of them.
“great idea”
“Not everyone has $100K”
“Make the font on your site bigger”
“We need something like this DO IT!”
“7 Figures? What kind of bubble do you live in?”
“I am in, let me know where to sign up” And many, many more.
By the time I went to sleep Saturday evening, We had nearly 2000 visits to Senior Scoops. The interest was evident. The feedback was overwhelmingly positive. The takeaway was this—we need to talk about strategies to stretch our retirement dollars. This will be the core principle of the blog.
A comfortable, contented retirement can be had without the nest egg “experts” deem necessary.
Everybody does not have $1,000,000!
How I got the idea
Some time ago, I had a conversation with a friend who had lost his wife about a year ago. As a result, he had come into $15000. from an insurance policy. Beyond that, he has a modest retirement fund.
Until then his wife took care of all the financial matters in their household.
Although I didn’t ask, he mentioned that he had not spent any of the money and had it all in the bank. I was glad that he had saved it all, but I couldn’t help asking about the interest rate he was receiving. He looked at me blankly and replied, “I don’t know, whatever the going rate is, I guess.”
Stop right there! That is a terrible answer.
I would usually proceed cautiously because I understand how sensitive people can be about money.
But, I have a good relationship with this friend, so I dove right in. “You don’t know? How the hell do you not know?”
It turns out he was receiving a rate of 0.05%, which is one-twentieth of 1%. That is highway robbery by the bank. Over the course of the year, my friend had earned only $7.50 in interest on his $15,000. That is not a misprint – SEVEN DOLLARS AND FIFTY CENTS on $15K
He is a smart person in many regards. Unfortunately, he never took the time to study money—even a little bit. His wife did, but she was gone.
Let’s look at where he should have been.
Interest rates have been on the rise for the last couple of years. As of this writing, it is possible to get 5.4% on a one-year CD (Certificate of Deposit-fully FDIC insured.) In other words—no risk.
Granted, that was not the rate a year ago but it was 3.5%. Had he positioned his $15K more prudently he would have earned at least $525 over the course of a year. That is better than a lousy $7.50. Right?
After last year’s gains, he would now be earning 5.4% on $15,525, while Mr. Big Bank would still be paying 0.05% on the $15007.50 he had accumulated.
You Can bet the bank is doing better than 0.05% on HIS money. Some of the big banks even have the audacity to charge a fee on top of that, reducing returns even further, and in some cases making it a negative return.
Since our conversation, he has moved his money to an institution that will give him many more safe, and higher-yielding options, more on that in a later post.
It was after this conversation that I realized that a blog like this could be useful to him and others.
Money isn’t everything
I understand that not everyone is interested in CD and interest rate-related content. It’s basic, Personal Finance 101, many if not most understand those concepts well. However, there are others out there who are not as savvy. I want to be there for them and help bring them up to speed.
Personal finance will not be the primary focus of the blog. I did touch on it in this article based on the responses to my FB/Reddit posts.
My original vision was a blog with suggestions on low-cost entertainment and travel options, some TV and book reviews, along with the aforementioned basic financial information.
We are also going to have some fun by writing about the absurdities of social media and posting some really cool YouTube videos. I plan on staying true to this vision unless the community steers me elsewhere.
I have set up a Facebook page with the same name “Senior Scoops”. All blog posts will be available there. More importantly, I hope it serves as a place for people to come and talk about their challenges, and in turn, find solutions from other members of the group.
One note on the FB page, I hope to make it a NO POLITICS ZONE. For now, it will remain an open-entry forum where all are welcome. That is subject to change should the environment become toxic.
A Reddit sub will be set up soon.
Conclusion
This project is beginning with the belief that retirement should not cost a million. I will need your input to make it a success. Add your thoughts and opinions on the Facebook page, it will make it a richer experience for all.
I hope that by building a community with this blog as a centerpiece, we can help each other towards a more rewarding retirement. McGeno
A source for current CD rates
senior Scoops 
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