Goldhawk Fights Back: Getting rich quick on the market

This is a weekly column by Dale Goldhawk, Canada’s best-known consumer advocate. A journalist, author and broadcaster, Dale hosts Goldhawk Fights Back For You, on AM 740 or at AM740 ZoomerRadio, Monday through Friday from 11 am to 1 pm, in the eastern time zone. Visit his website at www.goldhawk.com.

I have been hearing the same stories for many years, in good times and bad
times — investors who are unhappy with the returns on their nest egg or
unhappy their financial advisor blew town, with his clients’ hard-earned
money or unhappy the investments the advisor picked were mainly dogs.

Among the dogs you will find the cads, the bad guys.

The Texas
Attorney
Gereral’s office just caught two bit players, a pair of Texans who
targeted teachers and Zoomers with a bogus investment scam. The AG did
manage to recover 20 million dollars. It was returned to the victims.
Recovery almost never happens in the United States. I don’t remember that it
ever happened in Canada in any meaningful way.

So enter Canadian Chartered
Accountant David Trahair.

His book title says it all: Enough Bull: How
to Retire Well Without the Stock Market, Mutual Funds or even an Investment
Advisor.

He says things that we always suspected were true but seldom said
out loud. For example, “the stock market is not very logical. It’s driven
by emotion and feelings, not common sense.”

Common sense for Trhair, goes
a little like this: Buy a house. Do not invest a nickel until your mortgage
and all your debts are paid. As soon as you turn 60, retire and apply for
your Canada Pension. You can always re-join the work force later and you
will never have to pay for CPP contribtions again. Consider going into
business for yourself. Consider splitting your income with your spouse.
When you invest, buy no-fee Guaranteed Investment Certificates, covered up
to $100,000 per account by the Canada Deposit Insurance Corporation.
Take advantage of Tax Free Savings Accounts. By no stocks. Buy no mutual
funds.

Trahair told me he did his math and that over the past 50 years
the rate on five-year GICs has averaged a healthy 7.3 per cent. Meanwhile,
Canada’s benchmark stock index, by comparison, has risen by an average of 6
per cent over the same period, he says — if you deduct fees and charges
associated with stock market investments.

Bottom line: You can put your
money in guaranted and government-insured savings or take a chance for a
bigger payoff.

Trahair, who admits he is not an investment advisor but is
a Chartered Accountant, says with his plan, we get to sleep at night.

“If
you want to gamble,” says Trhair, “buy a lottery ticket.”

READ OTHER COLUMNS BY DALE GOLDHAWK

Goldhawk Fights Back: The bank makes a simple mistake

Goldhawk Fights Back: Breaking the contract

Goldhawk Fights Back: Keeping bankers at bay

Gemini award nominee, journalist and broadcaster, Dale Goldhawk has earned Canada’s trust by his four decades of work exposing fraud and greed in the marketplace. To read more of his articles, go to www.Goldhawk.com (now part of the ZoomerMedia family of websites).

Don’t miss Goldhawk Fights Back , on the New AM740 Monday to Friday from 10 a.m. until 1 p.m.