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January 29, 2020 | Reckless Financial Policies Have Been Bad Timing for Boomers

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

The last thirty years of increasingly more reckless financial policies, behaviours and capital allocations have come at a bad time for baby boomers.

Low savings rates, boom-bust asset cycles, expensive housing, less guaranteed pensions, low yields and rising insurance costs, along with cash-strapped kids–all have made finances tighter than hoped, for most.

Now aged 55 to 75 years old, all are nearing the age when most were expected to retire and within the final 1 to 3 decades of their expected lifespans.  Financial loss-tolerance is low and time is of the essence.

For the economy overall, this suggests lower spending from the consumption sector that has driven about 60% of Canadian GDP over the last decade.  Capital investment from business and government will need to pick up slack with a focus on improving the efficiency and productivity of resources so the population can spend less and benefit more.

Rick Lowes RBC’s VP of Retirement Strategy discusses with Financial Post’s Larysa Harapyn. Here is a direct video link..

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January 29th, 2020

Posted In: Juggling Dynamite

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