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  • richardmkiernicki

The Unconventional Conventional, Part IV

Updated: Aug 6, 2019

Last time I wrote I mentioned that I detest RRSP “season”. Is there really a season? Of course there is. Imagine that, an entire season devoted to the promotion of that government created and sponsored promise of retirement vehicle, the RRSP. I mean why would any thinking individual willingly participate in this long term government sponsored retirement scheme? In my experience most people do not know, beyond the fact that there is a tax

saving, why they contribute to an RRSP in the first place. Most individuals never read the fine print in any contract so why should an RRSP contract be any different? Get them in and let them figure it out. The government would never support my involvement in their scheme if it wasn’t really good for me and my family would they?

The sad part here is that many people never really know the intricacies and specific details that surround the product that they are purchasing. They are pretty much unaware of the long term implications surrounding the plan they choose to take part in and how it will affect them in the long run. And most financial advisors and sales people neglect to point out the necessary details and the specifics of such a long term engagement. One would think, that if you are making such a long term decision, that there would be many more questions and a better understanding of the implications and the alternatives before making that type of life-long commitment. Perhaps there is some truth to the fact that most individuals spend more time planning a vacation than planning their retirement. It does not need to be that way.

This raises the question of financial literacy. If the financial advisor is not really financially literate in the first place, will his client be? Does the client have enough information in the first place to ask all the pertinent questions surrounding the option they are considering or being sold? Where does one get unbiased information that discusses freely the implications of any investment vehicle and the possible alternative solutions? Who teaches financial literacy in the first place? The financial institutions and the government.

So why would the creators of any scheme want you to ask more questions? They do not. They want you to remain illiterate. They want you to remain ignorant. They do not want you to ask too many questions. Their business is all about making profits for their shareholders and that my friends is specifically why you will never be told the absolute truth about anything.

Copyright 2013 Richard M. Kiernicki. All Rights Reserved.

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