The fundamental situation is that tens of millions of people, either directly through their investment portfolios and/or retirement accounts, or through their pension funds, are investing long-term based upon certain assumptions when it comes to the compounding of wealth.
At the heart of the issue — and something that has been built into financial and retirement planning models for decades — is the assumed payment of normal interest on bonds, money market funds, certificates of deposit and other financial instruments. It has been built right into the assumptions the entire time that…