Cautiously investing for retirement Sep 8th

Q: I have funds sitting in a high interest bank account. I am totally risk adverse because of a partner’s unfortunate business investments and resulting bankruptcy. I have favoured real estate always. What should I do as a senior with no company pension or income from investments?
—Dee
A: It’s unfortunate to hear about your partner, Dee. I am guessing that they are also a senior and may be coming into retirement with limited savings.
When people talk about investment risk, I think that they mistakenly focus on the short-term fluctuations of the stock market. It’s the 6 o’clock news effect. Or these days, the Facebook effect.
In the long term, stocks go up. The Toronto Stock Exchange has returned 7.6% annualized in the 10 years ending Dec. 31, 2014. Over 20 years and 30 years, returns have been 8.83% and 8.97% respectively.
While some companies will fail–whether private, like your partner’s company, or public, like Nortel–there will always be companies that provide good goods and services and make a profit for investors…