The problem of investing in a zero-rate world

"This chart, courtesy of Robert Shiller of Yale, shows the change in 10-year U.S. Treasury yields from 15 percent in 1981 to the current 1.89 percent in 2015. To put these numbers in perspective, in 1981, an investor with $1 million could purchase conservative 10-year U.S. Treasury bonds and earn a very productive $150,000 per year. Today, that same $1 million in 10-year U.S. Treasurys earns $18,900."

Sections in quotes Reposted From Michael Elfers

How to ease the burden of student debt

In an environment where U.S. consumer prices overall remain historically low, tuition is one of the fastest growing expenses. By extension, it means the $1.2 trillion collective mountain of education debt is likely to grow bigger.

Experts cite ballooning student debt as detrimental to everything from net worth to credit scores, and even the ability for students to get jobs to pay off their loans.

Annual tuition inflation has slowed since 2004, according to data from the Bureau of Labor Statistics, yet it still averaged 6 percent over the course of the decade. At that rate, six-figure loan debt is rapidly becoming the norm for many graduates, and students may find themselves swallowed up by a black hole of debt, unless they can find a way to achieve escape velocity.

Reposted By Olivia Michael