I heard at least two stories today from people I know who have lost a lot of money recently on mutual funds just due to all the events happening. In one case a person lost almost $10,000 in recent times which isn’t exactly nice. Another story I heard was how another person actually just started investing in it last year versus the safer options such as a GIC. They figured why not but I guess after today they are regretting it.
Many people make money with mutual funds of course. But like with most types of investments there is always a risk where you will come out with a negative result. What is bad as well are the stories from people who are retired that banked on earning some extra money this way. Unless you are wealthy by then losing that much money can substantially change one’s lifestyle desires at that age.
I always thought things like the Tax Free Savings Accounts was an ideal “safe” way to put your money away until retirement. Not only because of the interest you can earn, but at the same time you know that you won’t have to pay any tax when you actually take it out of the bank. That’s not something most people think about during a retirement.
I do wonder if there is ever a specific age where it is safer to stop investing in items where you could potentially lose money.