Financial crisis not-so-quickie, and rethinking the future (just mine)

[mousme]

I haven't talked much about the current financial crisis. It's not that I'm playing ostrich (although part of me really wants to, and another part of me wonders where the hell the idea came from that ostriches actually bury their head in the sand, but that's because I'm a dork), but rather that I feel way out of my depth on this. I'm worried, but not informed enough to make any kind of clever comment/analysis concerning this fiasco.

My RRSP guy told me a couple of weeks ago that my funds wouldn't be affected. That was before the $700 billion bailout was thought necessary. I haven't had the courage to ask again, but I have a sneaking suspicion that whatever I've got invested has likely taken a nosedive. Given that my RRSPs were supposed to be a major part of my downpayment on a house in a few years, let's just say that this is putting a major crimp in my plans.

*sigh*

Still, compared to what's happening to most people, I'm getting off relatively lightly. I have a good job that is unlikely to get eliminated any time soon. My RRSPs might recover in time, if I don't do anything too rash. I don't depend on my RRSPs to live the way some of my friends do, and the way many retirees do.

What I may have to do is review my expectations of what kind of life I should expect to have in the next ten years. I may not be able to have the little homestead out in the country the way I want. I may have to adapt in place, as Casaubon Blog suggests many people will. I think I'm well-placed to do so. I live in a builing owned by friends, with a yard that is large enough to convert entirely to growing vegetables during the growing season (May to September, or thereabouts). I live close to where I work, which is more than most people can say: worst case scenario, I can walk to work in the time it takes most people to commute here by car. Better case scenario, I can bike here in 30 minutes (less when I'm in better physical shape). Also a better case scenario, I take public transit the way I do now. I also live in a city where I have lots of friends and family, and a more than decent support network. I am also slowly developing skills (gardening, preserving, canning, etc.) that will enable me to live more frugally and in a way that is more environmentally friendly.

In short, if I count my blessings, they are many. I will be a little disappointed to not be living in the country, but I have the advantage of liking the city where I live, and being overall in a pretty secure position. Nothing is certain in this world, of course, but generally speaking I'm doing better than the average person (whom Palin and McCain would call "Joe Six-Pack").

I'm also quite thankful that I may well be in a position, if worse comes to worst, to offer crash space to friends and family if they truly need it. I live in a place which is large enough to accommodate many more people than just little old me.

Hrm. This post turned out a lot more optimistic than I thought it would. Cool. :)

Comments

[bodhifox.livejournal.com]

You're assuming city services, employment etc remain steady. In that case, yes, you're in a good spot.

I'd say the same thing about my parents' place. I could move there, grow enough food and pick up enough work to get by, even have some friends move there. But that's assuming they can keep the farm too.

Keep you options open, and don't discount the place in the country either.

ETA: OTOH, I maybe there seeing if you need a roomie someday, too.

[mousme.livejournal.com]

I'm saying that in my particular circumstances, the odds are good. My employment is likely to stay put (police services will be required for a good long while in all but the most Road Warrior-esque scenarios), and I am in a position to make do with drastically reduced services otherwise (public transit, supermarkets, what have you).

You will always be welcome here. :)

:::Edited because I can't spell. Duh.:::

[ai731.livejournal.com]

Re: RRSPs, here's what I would be doing if I were in your situation:

However much you are currently putting monthly into RRSPs; half of it continue to invest the way your financial adviser suggested. Put the other half into GICs in your RRSP. Two reasons for this: 1. GICs give you a (small but) guaranteed return (that's the "G" in GIC), so if the market tanks completely, you'll still have half of your money earning interest and growing. 2. GICs are the *only* part of your RRSP that are covered by Canada's Federal Deposit Insurance (up to $100,000) should your bank go under.

[sorceror.livejournal.com]

I saw my financial advisor yesterday. Her advice was:

1) Don't sell.
2) Don't put in new money until the market stabilizes.

So I'm going to be saving for a while, me.