Many individuals are frustrated with the low returns and high fees associated with investing their hard-earned money in banks and other financial institutions.
Investing: A Black Hole for Hard-Earned Money?
In a recent letter to the editor, frustrated reader Joe Szukalski expressed his dissatisfaction with the current state of investing. He lamented the fact that big corporations, especially banks, seem to be making record millions on the hard-earned income of ordinary people. Szukalski shared his personal experience, highlighting the disappointing returns he received on his investments.
First, Szukalski mentioned his decision to invest in a Registered Retirement Savings Plan (RRSP) with the hope of making a good return. However, he soon realized that his returns were minimal, and instead of seeing gains, he received notifications from the bank urging him to add more funds to his account. He found a similar lack of success with his children’s educational accounts, where the only benefit seemed to be the tax deductibility.
Szukalski’s frustration continued with his Registered Retirement Income Fund (RRIF), where he saw little growth and received additional notices from the bank suggesting he should contribute more. He compared these investments to a “black hole,” emphasizing his belief that they are no different from a Tax-Free Savings Account (TFSA) where individuals simply give their money to the banks without seeing significant returns. He even sarcastically suggested that buying lottery tickets or visiting casinos might yield better results.
Turning his attention to the government, Szukalski criticized the gaming commissions for promoting the idea of spending hard-earned money in these institutions. He contrasted this with the past, where banks offered real interest rates that allowed individuals to benefit when the banks made profits. Nowadays, he argued, banks are content with offering 2-3% interest rates and claiming that individuals should consider themselves lucky. He accused big banks and industrialists of keeping the profits for themselves and giving only meager returns to the common people.
Szukalski concluded by suggesting that individuals should consider returning to the old practice of keeping their hard-earned money under their mattresses. While they may not earn the promised interest, at least their money would be safe. He also urged people to stop using credit cards, as the banks and credit companies are the ones benefiting from the fees associated with these transactions. Even merchants are not immune, as they too have to pay fees for credit or debit card usage.
This letter highlights the frustrations and disillusionment that many individuals feel towards the current state of investing. It raises important questions about the fairness and transparency of the financial industry and calls for a fresh perspective on how people can protect and grow their hard-earned money.