ARE YOU MAKING THE MOST OUT OF YOUR UNUSED RRSP ROOM?
WITH MARKET PRICES BEING DOWN, AND THE UNBELIEVABLY LOW INTEREST RATES ON LOANS, IT IS AN EXCELLENT TIME TO TAKE ADVANTAGE OF THE RRSP LOAN CONCEPT. INCREASE THE CONTRIBUTIONS TO YOUR RRSPs AND TAKE ADVANTAGE OF A HUGE TAX BREAK FROM THE GOVERNMENT BEFORE RRSP SEASON ENDS.
PLEASE SEE THE EXAMPLES BELOW TO GET AN IDEA OF THE KINDS OF TAX DEDUCTIONS YOU CAN RECEIVE BY USING THE SIMPLE RRSP LOAN CONCEPT.
THE TAX DEDUCTIONS BELOW ARE BASED ON THE CONTRIBUTION OF A $20,000 RRSP LOAN AT 3.75% INTEREST
IF YOU MAKE:
INCOME 1 - $ 20,000 TAX DEDUCTION: $ 4,210 IN YOUR POCKET
INCOME 2 - $ 50,000 TAX DEDUCTION: $ 6,230 IN YOUR POCKET
INCOME 3 - $ 80,000 TAX DEDUCTION: $ 8,682 IN YOUR POCKET
INCOME 4 - $126,000 + TAX DEDUCTION: $ 9,282 IN YOUR POCKET
All numbers are approximate and are subject to change at any time without notice.
TAKE ADVANTAGE OF THIS GREAT STRATEGY AND GET THE MOST OUT OF THE TAX MAN. ALSO, ASK ME HOW YOU CAN NEARLY DOUBLE YOUR MONEY IN 5 YEARS WITH ZERO % RETURN ON YOUR INVESTMENT…NOT A JOKE, ITS REALITY.
HAPPY INVESTING!
Jason Reynolds
Sunday, February 15, 2009
Monday, December 15, 2008
Words of Wisdom from Warren Buffett
For this month's blog I am going to copy and paste an article from the New York Times that was written by Mr. Warren Buffett himself. I hope his words of wisdom lead you down the path toward smart investing.
New York Times Article by: Brad Holland
Times Topics: Warren E. Buffett
THE financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary.
So ... I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.
Why?
A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.
Let me be clear on one point: I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.
A little history here: During the Depression, the Dow hit its low, 41, on July 8, 1932. Economic conditions, though, kept deteriorating until Franklin D. Roosevelt took office in March 1933. By that time, the market had already advanced 30 percent. Or think back to the early days of World War II, when things were going badly for the United States in Europe and the Pacific. The market hit bottom in April 1942, well before Allied fortunes turned. Again, in the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank. In short, bad news is an investor’s best friend. It lets you buy a slice of America’s future at a marked-down price.
Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.
You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy.
Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.
Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”
I don’t like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, I’ll follow the lead of a restaurant that opened in an empty bank building and then advertised: “Put your mouth where your money was.” Today my money and my mouth both say equities.
Warren E. Buffett is the chief executive of Berkshire Hathaway, a diversified holding company.
Thanks to all for reading...Happy Investing!
New York Times Article by: Brad Holland
Times Topics: Warren E. Buffett
THE financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary.
So ... I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.
Why?
A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.
Let me be clear on one point: I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.
A little history here: During the Depression, the Dow hit its low, 41, on July 8, 1932. Economic conditions, though, kept deteriorating until Franklin D. Roosevelt took office in March 1933. By that time, the market had already advanced 30 percent. Or think back to the early days of World War II, when things were going badly for the United States in Europe and the Pacific. The market hit bottom in April 1942, well before Allied fortunes turned. Again, in the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank. In short, bad news is an investor’s best friend. It lets you buy a slice of America’s future at a marked-down price.
Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.
You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy.
Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.
Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”
I don’t like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, I’ll follow the lead of a restaurant that opened in an empty bank building and then advertised: “Put your mouth where your money was.” Today my money and my mouth both say equities.
Warren E. Buffett is the chief executive of Berkshire Hathaway, a diversified holding company.
Thanks to all for reading...Happy Investing!
Tuesday, December 2, 2008
Motivation for 09'
Welcome to the December post of Personal Finance.
I would like to leave everyone with two quotes today. I also want everyone to take these two quotes to heart, as they have helped me dramatically through the last quarter of this volatile and fear filled year.
The first quote comes from a famous French chemist and microbiologist Louis Pasteur. You may or may not recognize his name, as he is most famously known for his discovery of the pasteurization process, which makes milk safe to drink.
Anyway, his famous quote that I would like to leave with you is:
"Chance favours only the prepared mind" - Louis Pasteur
What I took from this simple line is that there is no such thing as luck. The only way you will be successful in life is if you work hard (prepare) for it. Good things come to good people right? Depending on your belief system, this can be interpreted in different ways. I believe that you get what you desereve, and what you deserve is equal to the effort in which put forth.
The second quote I would like to leave you with portrays a very different message, however, they can be linked together in many ways. I took this quote from a gentleman in my company, and although these are his words, I don't believe he meant to be quoted on them. However, I took them to be quite motivating and important in my day to day business attitude.
"Take care of your clients like they have never been taken care of before, and they will take care of you and your family for the rest of your life"
What a powerful message...it doesn't get much more direct than that.
I would like to leave you all with one last piece of advice. This is something that I use on a daily basis, and although it hasn't been quoted from anyone who is historically important, I believe it to be a very valuable message that will hopefully help you as well.
"Be the person who your clients get excited to refer their friends to, and soon your business will be full of friends you never knew were clients, and clients you never knew were friends."
Thanks again all, and happy investing.
I would like to leave everyone with two quotes today. I also want everyone to take these two quotes to heart, as they have helped me dramatically through the last quarter of this volatile and fear filled year.
The first quote comes from a famous French chemist and microbiologist Louis Pasteur. You may or may not recognize his name, as he is most famously known for his discovery of the pasteurization process, which makes milk safe to drink.
Anyway, his famous quote that I would like to leave with you is:
"Chance favours only the prepared mind" - Louis Pasteur
What I took from this simple line is that there is no such thing as luck. The only way you will be successful in life is if you work hard (prepare) for it. Good things come to good people right? Depending on your belief system, this can be interpreted in different ways. I believe that you get what you desereve, and what you deserve is equal to the effort in which put forth.
The second quote I would like to leave you with portrays a very different message, however, they can be linked together in many ways. I took this quote from a gentleman in my company, and although these are his words, I don't believe he meant to be quoted on them. However, I took them to be quite motivating and important in my day to day business attitude.
"Take care of your clients like they have never been taken care of before, and they will take care of you and your family for the rest of your life"
What a powerful message...it doesn't get much more direct than that.
I would like to leave you all with one last piece of advice. This is something that I use on a daily basis, and although it hasn't been quoted from anyone who is historically important, I believe it to be a very valuable message that will hopefully help you as well.
"Be the person who your clients get excited to refer their friends to, and soon your business will be full of friends you never knew were clients, and clients you never knew were friends."
Thanks again all, and happy investing.
Wednesday, November 19, 2008
Welcome to the November addition of Comprehensive Financial Planning.
This will unfortunately have to be a relatively short post, however I will try to make the most out of it.
There are a couple things I would like to bring to my readers' attentions.
First of all, I hope your current Financial Advisors have made you aware of the government's new saving incentive. The never before seen Tax Free Saving Account has been introduced, and since I have to cut this entry short please visit http://www.investorsgroup.com/english/prodServices/investments/taxFreeSav.shtml
for more information about this amazing savings plan.
Secondly, I want to touch on the concept of borrowing to invest. I am sure everyone has heard of the term leverage? Leveraging is a great strategy that has been used for generations, and right now is one of the best times to use this concept. As many of you are aware, the markets are presenting a great opportunity to buy right now because everything is on sale! So, instead of starting to put away $200-300/month why not take out a $25,000 RRSP loan with a Prime variable lending rate and invest it into a moderate aggressive portfolio at approximately 8% growth? The payments would be approximate $300/month, so instead of slowly accumulating wealth over time by investing monthly, the large sum of $25k will immediately begin to grow and you will see exponential growth using this method.
There are hundreds of strategies that I present to my clients on a regular basis. There isn't a single concept that will work with everyone, but there is atleast one that will work for someone.
I love what I do because I get to help people on a daily basis. I get to show them things they have never seen before; even if they have had a financial advisor for years, I can almost guarantee any of my new clients that I will show them something new, something that could have been helping them for a number of years.
Passion is something that is lacking in most professions these days. The number one goal is usually to make money, therefore forgetting the true core values of the profession. My number one goal is to provide my clients with a value added service that is not about making money; rather it is about developing a long term relationship with one another so that their goals and concerns are taken care of.
Once again, I must sign off for now.
I always appreciate your feedback, whether it be compliment or criticism.
Take care all, and happy investing.
This will unfortunately have to be a relatively short post, however I will try to make the most out of it.
There are a couple things I would like to bring to my readers' attentions.
First of all, I hope your current Financial Advisors have made you aware of the government's new saving incentive. The never before seen Tax Free Saving Account has been introduced, and since I have to cut this entry short please visit http://www.investorsgroup.com/english/prodServices/investments/taxFreeSav.shtml
for more information about this amazing savings plan.
Secondly, I want to touch on the concept of borrowing to invest. I am sure everyone has heard of the term leverage? Leveraging is a great strategy that has been used for generations, and right now is one of the best times to use this concept. As many of you are aware, the markets are presenting a great opportunity to buy right now because everything is on sale! So, instead of starting to put away $200-300/month why not take out a $25,000 RRSP loan with a Prime variable lending rate and invest it into a moderate aggressive portfolio at approximately 8% growth? The payments would be approximate $300/month, so instead of slowly accumulating wealth over time by investing monthly, the large sum of $25k will immediately begin to grow and you will see exponential growth using this method.
There are hundreds of strategies that I present to my clients on a regular basis. There isn't a single concept that will work with everyone, but there is atleast one that will work for someone.
I love what I do because I get to help people on a daily basis. I get to show them things they have never seen before; even if they have had a financial advisor for years, I can almost guarantee any of my new clients that I will show them something new, something that could have been helping them for a number of years.
Passion is something that is lacking in most professions these days. The number one goal is usually to make money, therefore forgetting the true core values of the profession. My number one goal is to provide my clients with a value added service that is not about making money; rather it is about developing a long term relationship with one another so that their goals and concerns are taken care of.
Once again, I must sign off for now.
I always appreciate your feedback, whether it be compliment or criticism.
Take care all, and happy investing.
Thursday, October 30, 2008
Its Either Now or Never
I have started to develop a bit of a routine, and although I hate myself for it, I believe I am benefiting from the usual feeling of a daily regime.
Every morning I arrive at the office around 8:30 am, I set up my computer and while it is loading I get myself a coffee from the staff kitchen. On my way back to my work area I will normally say hello to the office assistants, who's early morning work habits make it seem as though they were in the middle of a typing contest. Upon returning to my computer I go through the mass of emails that normally accumulate from the night before, and then proceed to check on the market conditions before they open for another day of unpredictability. After replying to the numerous emails from clients, friends, advisors, and fellow office associates I will generally start to make my daily phone calls to prospects and future clients. etc. etc.
The reason I decided to bore you all with my daily routine is because I wanted to show you that history repeats itself. No matter what you experience from day to day, the general idea is the same. This is where my comparison comes in...
As I just mentioned, history repeats itself; this is also true in the financial markets. If I were to show you a chart of market growth over the past 50 years what would you see? You would see a steady upward slope to the right. Sure, there will be small ups and downs and tiny blips in the markets but the general theme is growth. So what would you say is the smart thing to do right now while we are experiencing a down market?
If you said take your money out and leave it in cash then you're absolutely, positively, wrong! When my clients tell me they want to take their money out of the markets to cut their losses I ask them one thing...Why? Give me one good reason why you want to do that and I will do it for you. If not, then you are leaving your portfolio alone. I bet that out of everyone who reads this blog, there isn't one person who can give me a valid reason for turning their money into cash because you are seeing some losses in your portfolio.
Think of it this way:
When are you most likely to go shopping? When there is a sale on of course! You wouldn't wait for the sale to be over then go buy the product when it is more expensive would you? No you wouldn't, so why would someone wait until the markets are doing extremely well and then buy into them when the unit prices are more expensive? These are the same people who hold on to their investments until the markets weaken, get scared and then put their investments into cash because they think it will be safer.
Let me ask you one question. Do you think that we are headed towards a catastrophe? Are we headed towards a society where all the banks shut down and the economy collapses on itself? If that is the case, you should tell your children to quit school now because there aren't going to be any jobs in the future.
I will leave you with one final thought, something that pops into my head every day and reminds me why I am in this industry...
You can't win the lottery if you don't buy a ticket...the same goes with investing. If you are investing in the markets there is usually one reason why you are doing it, to increase the value of your investment. So if you take your money out how is it going to grow?
Thank you all for reading, I appreciate your comments and feedback.
Happy Investing!
Every morning I arrive at the office around 8:30 am, I set up my computer and while it is loading I get myself a coffee from the staff kitchen. On my way back to my work area I will normally say hello to the office assistants, who's early morning work habits make it seem as though they were in the middle of a typing contest. Upon returning to my computer I go through the mass of emails that normally accumulate from the night before, and then proceed to check on the market conditions before they open for another day of unpredictability. After replying to the numerous emails from clients, friends, advisors, and fellow office associates I will generally start to make my daily phone calls to prospects and future clients. etc. etc.
The reason I decided to bore you all with my daily routine is because I wanted to show you that history repeats itself. No matter what you experience from day to day, the general idea is the same. This is where my comparison comes in...
As I just mentioned, history repeats itself; this is also true in the financial markets. If I were to show you a chart of market growth over the past 50 years what would you see? You would see a steady upward slope to the right. Sure, there will be small ups and downs and tiny blips in the markets but the general theme is growth. So what would you say is the smart thing to do right now while we are experiencing a down market?
If you said take your money out and leave it in cash then you're absolutely, positively, wrong! When my clients tell me they want to take their money out of the markets to cut their losses I ask them one thing...Why? Give me one good reason why you want to do that and I will do it for you. If not, then you are leaving your portfolio alone. I bet that out of everyone who reads this blog, there isn't one person who can give me a valid reason for turning their money into cash because you are seeing some losses in your portfolio.
Think of it this way:
When are you most likely to go shopping? When there is a sale on of course! You wouldn't wait for the sale to be over then go buy the product when it is more expensive would you? No you wouldn't, so why would someone wait until the markets are doing extremely well and then buy into them when the unit prices are more expensive? These are the same people who hold on to their investments until the markets weaken, get scared and then put their investments into cash because they think it will be safer.
Let me ask you one question. Do you think that we are headed towards a catastrophe? Are we headed towards a society where all the banks shut down and the economy collapses on itself? If that is the case, you should tell your children to quit school now because there aren't going to be any jobs in the future.
I will leave you with one final thought, something that pops into my head every day and reminds me why I am in this industry...
You can't win the lottery if you don't buy a ticket...the same goes with investing. If you are investing in the markets there is usually one reason why you are doing it, to increase the value of your investment. So if you take your money out how is it going to grow?
Thank you all for reading, I appreciate your comments and feedback.
Happy Investing!
Monday, October 20, 2008
The Markets are Fine!
Hello all, this will be my first of many posts, provided I get the feedback that I intend to.
I am a Financial Planner with Investors Group so I have been seeing the effects of this "credit crunch" up close and personal. Although I.G. has one of the lowest redemption rates in the past two months compared to other money managers in Canada, it is still a daily battle with clients to help them understand the full situation.
People ask me all the time, how is work? You must be going crazy right now. What do I say in return? I tell them things are great, and everything is excellent right now. And truthfully, I don't tell my clients anything that I don't believe in 100%. I have my own investments, and I am not rushing to turn all my money into cash. The value of our investments may have dropped, but that is only on paper...you don't actually realize a loss until you redeem the funds.
One of the top performers and most influencial people in my company once said, "Do you really think that the banks are all going to disapear and not make money in the future? If this is the case then you better tell your children to drop out of school because there will be no jobs when they grow up." I tell this to each and every person who is skeptical about the markets because it is true; I mean do you really think our economy is going to go bankrupt? I don't think so.
I invite anyone and everyone to reply to my posts as I am trying to help people understand the markets a little better. The best thing for our markets right now is confidence, and that is what I am trying to re-store. This is my first of many posts that I intend to publish and your feedback is greatly appreciated.
Take care all, happy investing.
I am a Financial Planner with Investors Group so I have been seeing the effects of this "credit crunch" up close and personal. Although I.G. has one of the lowest redemption rates in the past two months compared to other money managers in Canada, it is still a daily battle with clients to help them understand the full situation.
People ask me all the time, how is work? You must be going crazy right now. What do I say in return? I tell them things are great, and everything is excellent right now. And truthfully, I don't tell my clients anything that I don't believe in 100%. I have my own investments, and I am not rushing to turn all my money into cash. The value of our investments may have dropped, but that is only on paper...you don't actually realize a loss until you redeem the funds.
One of the top performers and most influencial people in my company once said, "Do you really think that the banks are all going to disapear and not make money in the future? If this is the case then you better tell your children to drop out of school because there will be no jobs when they grow up." I tell this to each and every person who is skeptical about the markets because it is true; I mean do you really think our economy is going to go bankrupt? I don't think so.
I invite anyone and everyone to reply to my posts as I am trying to help people understand the markets a little better. The best thing for our markets right now is confidence, and that is what I am trying to re-store. This is my first of many posts that I intend to publish and your feedback is greatly appreciated.
Take care all, happy investing.
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