Retirees Affected By Financial Repression

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    Too many retirees or should-be retirees are suffering the ill effects of ‘financial repression’ – a phenomenon whereby savers are systematically punished by negative real interest rates, initiated by debt-laden governments, says Nick Barisheff, CEO of Toronto-based Bullion Management Group Inc. Financial repression is a policy that sees many central banks cap interest rates for fixed income investors below the real rate of inflation. It liquidates the real value of government debt, but is devastating for retirees that depend on the cash flow from their investments. “Many people my age are panicking because traditional stock and bond investments are just not working. Many are, resigning themselves to working into their 70s if they are able, or taking risky bets to chase some form of income stream.” To help seniors, Bullion Management Group Inc. has constructed a mutual fund that combines the 12-year safe-haven stability of uncompromised gold bullion with a mechanism to receive monthly cash flow from capital gains, in a tax-efficient manner.