Keeping money in fixed interest you tend to lose about 2% a year from inflation.As bad as that is I think given most people who get involved with investing are clueless losing 2% isn't all that bad. Around RRSP season is when you see how bad people are with investing -- I'd say close to half and maybe more of individuals who have an RRSP think that an RRSP is a type of investment.

Mutual funds though are a horrible way to invest money.

OMG... Maury & Teresa are making a combined income of close to $180,000 per year. Even though their mutual funds crashed in 2008, they're worried that they won't be able to live the quality of life that they want and retire in their mid 50's.

The way I always look at this question is as follows: even if you're making $180,000 per year, if you're looking for a rich lifestyle after you retire, you better save up alot of money..

If you can retire with modest expectations, then you'll probably do alright.

I feel bad that their mutual funds lost a big chunk of their value, but that's what you get when you play with risky funds. Had they have kept their money in fixed interest they wouldn't have lost anything.

I suggest that this couple figure out what they will have saved by their mid 50's and what actually they can afford as far as their savings go.

Oh yeah.... put your money in safe mutual funds this time!

Canada.com
Near Toronto, a couple we'll call Maury, 43, and Teresa, 45, have a comfortable life with their two children ages 12 and 15. They have incomes that total $179,100 per year and indexed defined-benefit pension plans. Everything ought to be right, but their RRSPs were scorched by the 2008-2009 market meltdown. Now they wonder, can they still retire in their mid-50s as planned, pay for their children's post-secondary education and still be able to travel?

"We have saved money in mutual funds for about 18 years, putting in monthly contributions for the whole time. With the recent market crash, our portfolio has plummeted by 30%. Will it still be possible to retire with what has recently happened?"
http://www.canada.com/business/fp/money/Poor+plan+rich+costs/2422531/story.html