Wednesday, January 30, 2013

Money Matters: Stressful times for many

[Photo of 'Alison on Money', METRO, Jan. 29]

Financial analysts may at times appear to have all the answers - related to our financial health - but they fail to address very big questions. While 'Avoiding the stress of RRSP season' may sound helpful (and it will be to some readers), consider the following:

The average Canadian is up to his eyeballs in debt 

He doesn't make enough money to have an RRSP

When he hears "the maximum you can deposit to an RRSP for 2012 is $22,970" he wonders if he even makes that much and what planet is the writer from anyway?

Welcome to Canada, eh, the land of milk and honey for fewer people each year.

There are many reasons why fewer people are prospering each year and why comments from 'Alison on Money' (e.g., "setting up an automatic contribution plan will help you deal with this stressful time") sound really out of place for the average person. Canadians buy foreign products as if they're going out of style and 'Made in Canada' products and related jobs are going the way of the Dodo just as quickly. Modern machines do the jobs of many men and women and related unemployment figures seem destined not improve. Other reasons abound.

Since this is the season for financial analysts and gurus to pedal their wares, I predict a certain amount of financial stress will surface as a result of some of their encouraging words.

For example, when 'Alison on Money' says "$69,426.19 (is) the value of $100 saved monthly for 25 years at six per cent average annual return...", the average Canadian will wonder where they are going to scrap up that $100/mo. for 25 years.

Unfortunately, on that final matter, Alison remains silent. So do and many others, including most levels of government and businesses. Why is that?

Photo by GH


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