Juggling Dynamite

A recent survey on behalf of the Financial Planning Standards Council (FPSC) found more than 2/3rds of Canadians believe the economy – and their own financial situation – has either stagnated or worsened over the past 5 years (during a recovery!)  Two-fifths of Canadians say they worry about money at least once a day.

A survey conducted by Leger on behalf of the FPSC has found that 42% of Canadians rank money as their greatest stress; driving them to lose sleep, regret past financial decisions, lie to family and friends and argue with partners.

A recent study by the Vanguard Centre for Investor Research found that 47% of Canadian pre-retirees believed there was a national retirement crisis versus 36% of post-retirees.  See:  Are your clients retirement ready?

Nearly everyone today, is feeling as though they need to make more income.  In a time of stagnant wage growth and ultra-low interest rates, many are being attracted to financial products, promoters and so called ‘financial advisers’ who are promising higher yields.  Unfortunately they are doing this at a time when risk of capital loss has rarely ever been higher in human history.  The next bear market will reveal the truth about taking on excessive price risk in order to try and ‘make more’.  It is only a question of when, and not if, capital losses will hit.  This will set people further behind in their savings and income needs, causing them to have to work longer and/or downsize their spending plans.

Buying into the pitch of the financial sales industry, has always been a bad strategy.  This cycle, it is likely to be particularly devastating.

“And this, boys and girls, is one of the direct consequences of Zero Interest Rate Policy—people are incentivized to take stupid risks just to get a little yield.”–Jared Dillian, The 10th Man

Present conditions will not be permanent, but dealing with the realities at hand is crucial.  The correct way to increase cash flow today, is to reduce expenses and find some work or business income from active pursuits–perhaps rental income–that will add income, increase savings, and help to reduce and/or delay withdrawals needed.  By doing this, we greatly increase the probability of financial stability and peace, now, and in the future.

Those like the Koch brothers, oil companies and investors who have been funding pro-oil, anti-climate propaganda for decades, will be the obvious target of lawsuits to compensate for health costs, land loss (coastal real estate) and widespread suffering.  It’s a good job they have deep pockets. Proceeds they made in causing the harm, will be needed to help fund clean up and correction efforts.  Follow the money.  This discussion is exactly on point and worth listening.

Environmental health pioneer Gary Cohen says increased rates of asthma, infectious disease, and water contamination are about the hazard faced by the global community. Here is a direct video link.

Bernie Sanders isn’t buying what Donald Trump is selling. In his response to the President’s first speech before Congress, Sanders calls out Trump for going back on his campaign promises, lying about corporate tax rates, and continues his push for a single-payer healthcare system. Here is a direct video link.