Upside-Down World of Negative Rates Is Coming for U.S. Savers

Re:Upside-Down World of Negative Rates Is Coming for U.S. Sa... by pmoriarty on Tuesday March 17, 2020 @12:23PM (#22606551)

"Either put the capital to use in the real economy, or moths and rust will destroy your hoard."

I'd like to explain this to my elderly parents, who have cash sitting around in savings accounts and don't invest, but don't think trying to scare them with "moths and rust" is going to be very convincing.

What's a more convincing way to explain this?

Also, are money market accounts also going to be hit hard by negative interest rates, or would that be considered investing?

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Re:Upside-Down World of Negative Rates Is Coming for U.S. Sa... by jbay808 on Tuesday March 17, 2020 @12:40PM (#22606774)

If your parents are elderly, maybe a savings account is the right place for their money.

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Re:Upside-Down World of Negative Rates Is Coming for U.S. Sa... by armagon on Tuesday March 17, 2020 @12:35PM (#22606719)

With the caveats that I don't know more than the basics of investing and have a few years for funds to grow, I found the audiobook "The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life" by JL Collins to be very useful.

I don't think it'll touch strongly on saving your money being a bad idea, and I really don't remember anything about negative interest rates, but it does make investing seem much less scary.

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Re:Upside-Down World of Negative Rates Is Coming for U.S. Sa... by SketchySeaBeast on Tuesday March 17, 2020 @02:53PM (#22608695)

A "few years for funds to grow" is probably the opposite of what his elderly parents have.

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Re:Upside-Down World of Negative Rates Is Coming for U.S. Sa... by armagon on Tuesday March 17, 2020 @04:51PM (#22610273)

That's why I mentioned it as a caveat.

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