A week ago yesterday seemed like a routine day, with me behaving myself, as usual, when the phone rang.

It was the minister from the same church that Iva Mae attends ... and she asked me whether, as she was to be away on study leave, I could take charge of the worship this coming Sunday ... and I said that I'd be pleased to do so.

Within an hour, the guy that herds some of my mutual funds called. He'd called about three weeks ago, suggesting that we get together. I told him that I hadn't bought a mutual fund in over 20 years and wasn't planning on buying any now, so he could save himself a 55-mile trip ... but he said that we needed to update some paperwork, so we'd met.

He gave me some papers showing how my mutuals had done and we did a 'Know Your Client' update, discussed various matters, and each had gone his own way.

His compliance guy had called him, saying that he was out in left field ... having a guy over 80 years opting for 'growth' in his investments, and willing to take 'moderate' risk ... and that he had argued extensively with the guy, saying that Ed knew what he was doing, that the choice was O.K. ... in this case!

The upshot was that he wanted me to initial each of the offending choices ... I think that it's called, ' ... covering (the company's) rear end' ...

... but the compliance guy was right in complaining about that kind of paperwork relating to a person of such an age ... for many unwitting seniors have been taken advantage of by unscrupulous advisors in precisely such a fashion!

So ... then I went to visit the office of a local Member of Parliament, asking the staff person whether she knew how our government has been shooting a number of its citizens in the foot, especially seniors.

She said that she didn't ... but expected that I was about to tell her ... and I said that I'd only do so if she wanted to hear it.

I didn't tell her that, if she didn't, I'd go on the internet to tell folks the offer that I'd made ... and it seemed that they weren't wanting to hear my unattractive assault on their unwilling ears.

Financial advisors have been telling us for years that we should put our assets at some risk only when we're young and can replace them it they shrink (or die), but that as we age it becomes almost impossible to replace such depleted/disappeared assets.

So, for example, a young person of 20 can be 80% in equities, and about 20% in bonds, GICs, etc., but when we're 50 it should be 50% - 50%, and by 65 it should be approximately only about 35% equities and 65% bonds, GICs, etc.

And how bonds/bond funds have had good returns in recent years.

Yeah, sure - as interest rates go down ... bond prices rise ... on the after-market: one gets full dollars if one holds the ones that s/he owns to maturity.

And now - interest rates are at almost historic lows, which governments have been keeping there, claiming that it encourages banks to lend, building new jobs. But in reality, the banks take the money and play some of the nefarious games that they've been playing in recent years.

And the governments want to keep the rates low ... as they owe huge debts, and when interest rates rise ... they'll have much higher interest costs, meaning that there'll be much less money on hand to carry out their usual tasks.

Which has meant that, earning peanuts of interest in recent years, many seniors have had ro eat into their capital much more than they expected, to keep their heads above water.

That my favourite money management magazine carried an article this month saying that, rather than accepting 1.2%, 1.7% or 1.9% on a government bond ... wouldn't it be wiser to shift some of that money into equities, as a number of stocks are paying 3 - 4% ... and that at low tax rate ... but interest is taxed at top rate.

If a person has an after-tax return of 1% ... it means that one needs have $4 million invested in order to earn $40,000.00 to live on!

Furthermore ... many pension funds are required to keep a substantial portion of their assets in ... guess what ... bonds (or their equivalents) ... so they've been bleeding assets, in recent years.

Not only that ... our governments have been printing money, hand over fist, in recent years ... and when there are $2.00 floating around in the economy, when there used to be only $1.00, and there hasn't been a major increase in the amount of goods available ...

... guess what ...

... soon ... what used to cost $1.00 ... will cost $2.00!!

Plus - gasoline ... and food ... being volatile, aren't included in the CPI!

Have you visited a grocery store lately?

Every dollar that you have invested in a government bond (or any bond, for that matter) has caused you to make a contribution to the issuing agency of a substantial amount, every year of the last several.

She couldn't find fault with my logic.

The Member of Parliament is to call me.

He hasn't ...

... yet.

So much for my experience ... of a week ago Wednesday!

ole (frustrated) joyful

Here is a link that might be useful: My favourite personal money management magazine (no ads)