Another day, another tragic story about too-good-to-be-true return hopes, financial loss and devasted life plans. Ten percent is not a sustainable return objective, and far too risk-seeking for retirement funds. Yet many people still make such presumptions. This is a reliable path to pain and suffering. Read How 500 Ontario investors may have lost millions in Paramount Equity Financial collapse:
Rob McCormickk and his wife say their dream of a comfortable retirement was shattered after they lost nearly $350,000 with Paramount Equity Financial Corporation.
McCormickk, 63, from Keswick, Ont., was told about the investment opportunity by a friend and said he was swayed by claims of “fixed stable returns” and a “no-loss guarantee.”
“It’s been devastating,” said McCormickk, who runs his own advertising company. The investment opportunity was so appealing he threw in another $100,000 belonging to his mother.
“We lost over 50 percent of our life savings. This was supposed to be our retirement money, and we were looking forward to retire in the next two to three years.
“Now we’ll never be able to retire.”
…Global News has spoken with a half-dozen investors who say they have had their lives upended by the Paramount financial collapse. Some took out second mortgages to invest, while others say they may have lost their life savings, one investor says they were forced to sell their house.
Also, watch this video clip: Ontario investor describes losing money in Paramount Equity Financial collapse.
If you, or someone you know, are considering whether to stop work and rely on income from savings and are presuming a withdrawal rate of more than 2% today, you are probably at risk of consuming principal. If emailed your facts, I will offer some thoughts. That said, people can be hard to help and often play a leading role in their financial hardship because magic money projections can sound more appealing than honest math.
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