The Ontario Securities Commission has unveiled a new strategy to protect senior investors.
This makes me shake my head because I have to ask myself, why does the government need to step in and save seniors?
Are they that dumb after living a lifetime of working, saving and investing?
Can't be.
Over 1,000 people a day are turning 65 years old in Canada. These are the fortunate ones who won the birth lottery. They had awesome and unfettered access to the best jobs, benefits and great pension plans. They have been entitled their whole life and now they need protecting.
In my opinion I don't think so and I'm on the cusp of turning 62. I don't want to bash my fellow retirees but c'mon, we've had it pretty good if you compare us to the millenials who are facing shrinking benefits, low wages and stiff competition to the job market.
When I was a teenager we had the pick of any job you wanted. If you didn't like it you quit and moved on until the next. Getting a summer job was easy, easy as sunday mornin'.
The OSC calls this new initiative the Seniors Strategy.
What's Under the Hood
It bills this as;
"a stronger and more secure financial future for all Ontario Seniors"
It seems that the commish needs to ensure that the needs of older Ontarians' are appropriately met, that's why the policy is necessary.
What is the Strategy?
- to continue the ongoing effort to sort through confusing titles the investing industry uses
- investors will be asked to name a 'trusted contact' in cases of abuse
- investment firms have asked for legal protection
- new regulatory guidance for firms dealing with senior specific issues
- strengthen the dispute resolution process so it works better for seniors
I have no idea why all these new regs would be necessary to save older investors from themselves. If you are 65 and can't detect a scam or know when you've been taken then you must believe Trump is the greatest president in history.
I get it there are some unscrupulous people hiding in the weeds to take your life savings if you're not careful.
I also can't feel a little suspicious when I hear that the Mutual Fund Dealer's Association is strongly backing the new strategy.
Everybody it seems wants to help protect seniors. Education will be stepped up and that more research is needed in how to take care of seniors.
It seems you need a babysitter to change your Investing Depends too.
It seems you need a babysitter to change your Investing Depends too.
My Takeaway
To say I'm skeptical about a new initiative backed by the Mutual Fund Dealers and proposed by the government is an understatement.
Yes laws and guidelines should be set up to combat criminal fraudsters, but they exist in all walks of our life. Somebody is always trying to separate us from our money and coming up with unique ways of doing so all the time.
The Bernie Madoffs of the world are few and far between in my opinion. Know who you are handing over your money to. Better yet, learn how to do this yourself. You need to work on your financial IQ as much as you worked on your kids, job and marriage.
Finally DO NOT invest in mutual funds. They are way too expensive and there are cheaper alternatives like ETFs.
We need more government intervention in areas like increasing the TFSA contribution limit so we can take care of our own retirement. Also, how about lowering the mandatory withdrawal rates from our RRIFs so we have more money in retirement. The percentages are too high.
Those are two great places to start to help seniors take care of themselves instead of more nanny state laws and protections.
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