Welcome to the second edition! A lot has happened since the first edition of this book came out in early 2009. As I read through the first edition to see what needed updated, it occurred to me that my opinions haven’t changed. I still stand by everything I said the first time – the stock market is no place to trust your hard-earned retirement savings in.
But some sections needed updated. For example the whole chapter on CPP is revised for the new rules that came into effect after edition one was published. And here’s a bonus: this edition now includes step-by-step instructions for you to compute exactly how much CPP pension you can expect.
Ok, let’s start at the beginning.
The period of time we lived through in 2008 and 2009 shifted the financial world on its axis. The old rules regarding personal finance are now history, as in obsolete.
This happened in the last quarter, the autumn of 2008. Let’s call it “The Fall of 2008.”
During this period financial institutions that had existed for more than a century simply disappeared. World stock markets tanked. Entire investment portfolios were devastated. Retirement dreams wiped out.
What this series of events has done is show quite clearly the naked truth: traditional financial planning techniques don’t work. In fact, if we had done the opposite of what the “experts” have told us to do to get ahead financially, we would be far better off today. Here are some of the past theories and the new reality: ...