Many seniors have lost their life savings by investing in short-term commercial promissory notes that are nine months or less in duration. These notes may be touted as being “insured” or “guaranteed,” but the insurance companies generally are located outside of Canada, are not licensed to do business in Canada, and lack the resources necessary to deliver on the promised guarantees.
Unlike publicly advertised promissory notes, these notes are usually sold without being registered. Don’t be fooled – there are exemptions available to high-grade commercial paper traded by major corporations – not to these risky notes pushed to the public by a sales force paid with extremely high commissions.
Beware of agressive sales people pushing short term notes that offer higher than usual interest rates. Remember, if it sounds too good to be true…
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