Wednesday, October 04, 2017

Puerto Rico bonds and potential wipeout after Trump's comments, and retirees

Puerto Rico ‘s bonds tumbled further in value after President Trump suggested wiping out their debt, rather than restructuring it with normal bankruptcy procedures.

Some retirees find that financial planners advise them to purchase instruments for developing countries or even US territories for higher yields.  This is obviously risky, as some bonds could be wiped out, which is unusual compared to stocks.

I haven’t noticed any problems in my own stuff.  But it does highlight a problem for retirees who want to “coast” and not work so hard to “make money” which sounds like an ideological issue for some people.

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