Shrinking Income

Several years ago, many seniors lived sumptuously off investments in CDs. Today, with CDs paying off at a measly 1% more or less, some seniors are nearing poverty. Why? Because of the lowly interest rate? Yes, in part. But even more importantly, many seniors prefer security (fixed income) over speculation.

I'm old enough to remember in the '70s that our home equity money (a modest sum to be sure) was parked in a money market at around 17%. It was parked because we had moved out of the country and were not in a good position to speculate on our  funds, particularly when it was doing so well in a secure environment.

More recently, as chaplain in a retirement community, I empathized with widows in particular who were watching their income shrink as interest rates fell, powerless to do anything about it because they lacked the courage to invest (speculate). Almost every senior has some kind of financial senior moment.

There are those who are afraid to invest. There are those who are fearful that their investments will under perform (an embarrassment to their expertise) or get mismanaged. There are those who have so much money they will never live long enough to spend it. And there are those who have been victimized or bamboozled.

Reading newspapers, watching financial news on TV, subscribing to financial letters and magazines or finding a trustworthy financial planner are equally helpful and/or confusing. It has been advised to stick with one or two financial sources as too many are confusing and counterproductive. One commentator says to buy gold; another says sell. One so-called expert says forget stocks and buy mutual funds; another says get into options and still another says put everything into cash (or under your pillow).

So, what's to do? Remember the mother who prayed for ugly daughters so she wouldn't have to worry? Nice try. Handling finances in our twilight years for some is a joy; for others it is pure agony. There are those who haven't balanced their checkbook for years. And there are those who simply have no idea how rich or poor they are. Their money is in a trust, with a bank officer or in a piggy bank.

Seniors and money is a remarkable phenomenon. When asked what we would do if we ran out of wherewithal, a typical response might be, I'll manage somehow; My kids won't let me down; God will take care of me; Uncle Sam is a magnanimous creature. With Uncle Sam, me worry? No way. With social security, pension, IRA and 401k and a tidy sum in the bank, I'm set for life. Yeah, maybe.

With all the talk about Social Security going broke, without enough workers to keep it solvent, with talk of Uncle Sam borrowing from Social Security to pay some of its bills, well, well maybe some of us aren't trusting enough.

Or too much. If you have never had a financial senior moment, with either too much or too little money, you are among the lucky ones. As for the rest of us, we may never lose sight of this senior moment until senility settles in and our worryin' days are over.

Meanwhile, we can be thankful that we still have some senior moments because the alternatives aren't too inviting.