Al Turk, 77Brooklyn, NY
When I retired in June 2005, interest rates weren't high, but they were liveable. My plan was to take money out of my CDs every month for clothing, entertainment and medical expenses.
That used to be the typical plan for retirees: You would invest in CDs and withdraw cash from the interest they earned. Now CD's earn you less than one percent a year.
As a result, I'm going heavier into the stock market. I figure, this must have been the Federal Reserve's intent when they dropped rates to zero.
I keep track of the latest financial news and trade frequently. You have to stay ahead of the game. It's definitely against the rule of thumb, which says retirees are supposed to start thinking of safer investments.
Am I worried? Of course! The market offers no guarantees, and there are so many external factors that can affect it.
Bernanke's polices punished the savers, but it's not malicious. He had to get the stock market rolling back up. He did what he felt was good for the majority of the country, and if I was in his place, I would probably do the same thing.
If interest rates were to go back up to the 5% or 6% level, I might start saving again.
NEXT: Avoiding bonds
