Don’t get caught retired and broke + MORE Jul 8th

If you’re an investor you’ve probably come across the term “money market” many times. However, many don’t use this investing vehicle because they don’t understand how it works or assume it’s only used by big corporations and governments. With the emergence of money market funds, though, every investor can now participate in the money market. It can be a great place to invest your money for a short period of time before you make a long-term investment decision. The return is slightly better than your bank savings or chequing account and is also considered one of the safest most conservative places to park your cash.
What Is The Money Market?
A money market is a subsection of the financial markets, and a place for financial institutions to borrow or lend for a short period, generally less than one year. The money market consists of securities like government bonds, commercial paper, short-term mortgages and asset backed-securities. These are some of the safest places to invest money for the short-term, but they also have very low returns compared to stocks and bonds…

There is a real downside for consumers, who find themselves inadvertently making billions of dollars’ worth of interest-free loans to retailers, banks and even government agencies.

In my research I have found one age group that is at much greater financial risk than others. It’s the age 55 to 64 group—both male and female. The risks for this group are almost always health related. Most Canadians greatly underestimate health risks. Individuals in this age group who have had to stop working due to health issues are not eligible for many retirement benefits until they reach age 65. In this corridor leading to retirement there are increasing expenses such as prescription medications and health aids, but often there is little or no insurance available. Until the individual reaches age 65 they find it necessary to tap into their savings or take on more debt. Even upon reaching age 65, some continue with financial challenges.
Three key factors for financial security later in life:

Be financially literate. This does not mean becoming an expert in everything. Make it a personal policy to not sign anything if you do not understand the full implications of it. Keep asking questions and doing research until you are satisfied…

There is a real downside for consumers, who find themselves inadvertently making billions of dollars’ worth of interest-free loans to retailers, banks and even government agencies.

There’s no shortage of horror stories associated with the “gap” years – the lingering time between healthy life expectancy and actual life expectancy.
You often hear of the fallout from poorly planned end-of-life financial decisions, ill-managed expectations of family members or the onset of dementia resulting in an inability to properly sort out financial affairs.
The issue is, while healthy life expectancy for men and women in Canada is 69 and 72 years, respectively, many are living nine to 11 years beyond the “healthy” time – and these extended final years are causing havoc with their finances and savings.
A Growing, Aging Demographic
In 2011, nearly 15 per cent of the population – about five million people – was 65 or older. It’s an issue RBC Wealth Management tackled in “Mind the Gap: What Canada’s Baby Boomers Need to Know to Protect Themselves.”
“These changing demographics present challenges that we haven’t seen before in Canada,” said Tony Maiorino, head of RBC Wealth Management Services, in a release with the report…