A Key Point of Concern

Feb 19, 2010
This excellent commentary http://www.theglobeandmail.com/blogs/bruce-anderson/money-talk-will-become-deeply-divisive/article1474175/relates to why I decided a few years ago to return to the market. When I made that choice, this is what I thought might be coming. Now it is a fact, with its uncomfortable implications.

When I was a child, a series of relatives came into my life and into our house who were elderly and could no longer support themselves. This left an indelible imprint. There was no social safety net. That was yet to be created in the socially-conscious (although politically incorrect) Father Knows Best and Mad Men aftermath of WWII. The reference in the article about another generation possibly becoming dependent upon their children was what actually galvanized me into action, especially when adding in the big surprise of how much longer generations were living.

For those inclined to look ahead, more than ever the best option continues to be to obtain a government pension, preferably double-dipping and at a senior level, if it can be arranged. The alternative amount of capital needed on a personal basis, what with today's government debt and actuarial tables, is quite startling. If that doesn't seem in the cards, be prepared to do some heavy lifting because somebody is going to have to pay for those benefits, even if they are not coming to you. In Greece, the public is about to find out. Consider that an outlier of what can happen elsewhere.