Before We Continue with the "Screw List"

We were going to continue with what we dubbed the "Screw List" from last time. But before we continue, a few thoughts.

It's Sunday morning. The sun is rising. It's crisp and clear. Fall continues, with the leaves finally changing color. (They've been tardy this year.) So the weekly Sunday respite from the pressures and cares of this world has begun on a bright note. Even the Screw List can't dampen a glorious morning and the calm and peace that the Lord's Day brings.

Tapping away on a keyboard with some chant in the background. The monks of the Abbaye du Barroux have completed the Hours of Matins, Lauds, and Prime. Now they pray Terce by chanting the words designated for this "installment" of the Divine Office. For those who may not be familiar with the Divine Office, these are part of the Liturgy of the Church. Along with the Holy Sacrifice of the Mass, the Liturgy of the Catholic Church (and the Orthodox Church as well) dates back centuries. While the Liturgy developed over the first centuries after Christ, its roots can be traced back to Him. And given that He was a Jew, these roots were planted firmly in the Jewish tradition.

I bring all this up because this chant that beautifully and bounteously fills this little nook in our home palpable connects with the entire history of the Judaeo-Christian tradition, even as it continues to express obeisance to God and obedience to His Law all the way down to this 14th day of November 2021. And let's not forget that the monks offer their daily prayer/chant for the benefit of all those who faithfully and fervently seek to know, love and serve God in communion with them. Can you imagine the stability and strength that comes with such a connection on a Sunday morning such as this? Even the Screw List can't dampen that.

(By the way, the monks of the Abbaye du Barroux stream their chanting of the Divine Office - Lauds, Prime, Terce, Sext, Vespers and Compline - every day. You can find it HERE if you want to check it out.)

Given the overwhelming beauty of God's Creation this morning brings, combined with the deep, penetrating effect chanting the Divine Office has on the soul, never mind the mind and body, you can understand that this morning begins brimming with gratitude to God for all His blessings. And this in the face of some terrible personal circumstances (death of a loved one) and the ongoing C-Virus Mess that continues to foster a kind of manipulated madness that divides us into vaxed/unvaxed and...well, let's leave it at that for now. Combined with this, the Screw List could find us feeling quite sorry for ourselves, or perhaps railing and ranting over the perceived injustice of our circumstances. But it doesn't - and it won't. God's grace will lift us out of ourselves. Really, it will.

Armed with this wonderful Sunday morning, the monks praying/chanting to God on our behalf, the Screw List can be relegated to its rightful place. It impacts all of us, but in distinctly different ways.

The vast majority of us take the negative impact right on the chin. Last time we saw the impact of low interest rates for those of us who face or are in the midst of "retirement" - defined as a ceasing of the income (our full-time employment) that helped us save and invest for a secure and stable future. Recall that the low rates we've had since 2008 have been artificially imposed on us by government policy and the actions of the Federal Reserve. Here's the effect of this, as noted last time:

Before 2008, it was possible for many people - even ordinary people, not just the well-to-do - to fund a portion of their retirement with what are known as "risk-free" government issued Treasury securities. You could build what's called a "Ladder" of these. And with interest rates in the historically normal range, you'd get a decent income from them without the volatility and anxiety that comes for many of us with investing in the stock market.

We'll add this: It really was possible for some people who wanted nothing to do with risking their hard-earned life-time savings to fund their entire retirement years with interest paid on risk-free government bonds, along with their social security.

And let's not forget that such people who could do this likely could be cause they gave up some of the trifles and pleasures that others could not forego during their income-earning years. They lived in modest houses, did not splurge on vacations, owned one "family" car, rarely went out to restaurants (and just as rarely ordered food in). 

As for their kids, they did not feel compelled to take them to Disney World every year, or otherwise indulge their every whim. Those who did not learn a trade and instead went to college did not have to pay the sort of tuition college's charge these days (a topic for another day). Many of those college kids lived at home and worked during their college years to keep costs down and help fund tuition. After all, families then may have had more than one or two kids. And - hold on to your hats - many families managed all this with one breadwinner - typically the father. The mother stayed home to "run" the household. 

Let's pause. Some of you might be a bit overwhelmed by this, especially if you're on the younger side and have never witnessed the world some of us grew up in. But it worked then. Really it did. 

Which brings us back to today and those artificially imposed interest rates. Combined with our ever-increasing life spans, the future can appear rather daunting to many who no longer earn a steady income, and who need to provide for themselves for another, let's say, 25, 30, 35 or more years. (Yes, a prudent "retirement" plan needs to factor in life to age 90, if not 100 or more.) But it's not just retirees whose planning has been undermined by those interest rates. Consider those approaching retirement.

In the past we were told to reduce the percentage of stocks in our investment portfolios as we aged. The standard spiel said to allocate a percentage to bonds based on our age. So if we're now 60 and planning to retire at age 65 in five years you'd have 60% in bonds, increasing to 65%. And, at that point, you'd continue to increase your allocation to bonds as you grew older. 

But given suppressed interest rates, can we really follow such "advice" anymore? Let's just say studies show that such simple blanket advice may work for some, but can not longer be confidently embraced by all. You can still set up a staggered "ladder" of risk-free government bonds, you'd be hard pressed to get more than a 1% return over time. And with inflation now creeping (jumping?) up, you're return turns negative. Even the 2% inflation the government claimed - until recently - meant you'd lose 1% per year - ad infinitum. (2% inflation minus 1% interest yields (negative) -1%.

And it's all because interest rates have been radically and relentlessly suppressed by the Fed - in cooperation with the federal government - since 2008.

Of course, you can opt to plow those retirement savings into stocks and hope for the best. But 1) Hope is never a good investment strategy; 2) We're at the tail end of an historic stock bull market. Unless stocks go up forever, they'll likely not simply correct, but enter a period known as a bear market. And if that bear emerges from its cave when you plan on retiring and relying on your investments to fund a portion of that retirement, you're screwed.

So we can add those now planning for a safe, secure retirement to our Screw List.