State of the Economy

Bad news again today. I'm beginning to wonder if anything will bring us out of this depression...yes, depression, because it is too disastrous to be called a recession so don't be fooled.

A newsperson said this morning that there will be a bottom point but no-one can predict how low we'll go before we reach it and start to recover. Anyone over 60 who had their retirement funds solely in the stock market probably won't live long enough to see their investment returned and that's a terrifying thought. My one and only mutual fund has now reached it's all time low and it represents a 1/3 loss. I'm not expecting to live long enough to see it get back to it's original value.

Ever since my husband retired I've resisted attempts by bank personnel to put our retirement money into supposedly high interest mutual funds (stock market) and insisted on the safer course of GIC's (guaranteed) which paid significantly lower rates. I knew we couldn't take chances and it turns out I did the right thing. Unless Scotiabank folds I'll be okay and maybe even leave $1.50 for my children to inherit.

My advice to the young. Don't take great chances with your hard earned dollar. First, invest in real estate such as your home. Pay it off as quickly as you are able. Next, invest in GIC's because they're about as safe as is possible in this world. Consider starting your own home based business on a small scale. It would be something to fall back on if your real job disappears. Don't spend large amounts of money on things you don't really need like toys and gadgets that will be obsolete within months. I know politicians are telling you that to renew the economy we need to start spending again but there will be plenty of dopes who will do just that. You be the smart one and conserve your funds.

When the economy picks up, and it will, pay off your bills first and then take a small percentage of your savings and play with it in the market. Don't ever take chances with the bulk of your money because what's happening today can happen again 10 years down the line.

I am your free financial adviser so take advantage of the wisdom of my years. LOL!