(Don’t worry. We’re going to tell you the entire secret)
The Simple Key to grow more wealth for your Entire Life, your children's lives and your grand children's lives, etc. in perpetuity;
doesn’t necessarily require more capital but just requires a better strategy!
Most people would like more money!
Most everyone wishes for financial freedom!
But, in fact, the only plans they have are for spending money.
They are planning on surviving, not thriving.
Most Canadians can make millions of dollars in their lifetime.
They just don’t know how to keep it!
There are 3 kinds of people when it comes to money
Borrowers:They don’t have enough money, so they borrow to live their lifestyle.
Cash BuyersThey save money and pay cash for everything (I used to do this).
Wealth BuildersThey do things right because they know how money really works.
What’s wrong with borrowing?
We all know the potential for borrowers to get into trouble.
They may end up owing interest on top of interest every month.
We call this “The Negative Wealth Curve”. It looks like this (and it’s very scary):
Banks want you to pay interest forever. It is to their advantage but there is another way!
When you don’t have any money, you have to borrow money.
However, to borrow money you must pay interest!
This is the PAY UP scenario! (However must you “PAY UP” interest to the Banker?)
What about the “Cash Buyer”?
The Cash Buyer understands money, doesn’t borrow, and thinks “Cash is King!”
Is this the right strategy? NO, this is the GIVE UP scenario!
Because every time you pay cash, you are “GIVING UP” all of the interest that your pile of money could have earned, forever (into your future, your children’s’ futures, your grandchildren’s’ futures, etc.)
The Wealth Curve
So what about “The Wealth Curve”? What does it look like and how does it work?
The Wealth Curve is simply the result of a powerful force known as “Compound Interest”.
Rumor has it that, when asked about the most powerful force in the universe, Einstein reportedly said, “Compound Interest”! But only when not interrupted!!
Borrowers are NOT on The Wealth Curve, but neither are Cash Buyers!
The Cash Buyer falls off The Wealth Curve each time he or she spends their savings
to make a purchase.
Falling Off the Wealth Curve
What does it mean to “Fall Off The Wealth Curve”?
It means that you’ve lost all the compound interest growth potential in that
cash that you spent.
Remember “PAY UP or GIVE UP!”?
That money you spent, could have earned you and your children, and grandchildren
wealth in perpetuity.
Believe it or not, “Cash is NOT King”. There is a better way.
The Cost of Falling Off the Wealth Curve
In this example, notice the portion of growth on The Wealth Curve that was lost? Note how your loss increases over time!
Notice how in this example the person fell off The Wealth Curve just that one time!
Most of us are falling off The Wealth Curve several times per year!
Can you see the terrible effect of falling off The Wealth Curve?
Riding the Wealth Curve
In order to get onboard The Wealth Curve, you simply need to do three things:
1. Keep your money in a place where it can grow forever, tax-free.
A properly set-up Dividend-paying Whole Life Insurance Policy is the vehicle of choice that Banks use. (And us too!)
2. Borrow any money you need to purchase large items.
Borrow against the “Cash Value” of your Policy any time, no questions asked.
3. Pay yourself back (with interest) from your future earned income.
Instead of paying interest to the bank as you would have had to; why not pay yourself back!?
Now That You Know the Secret
You can ride The Wealth Curve, too!
We have the ultimate strategy to keep you on The Wealth Curve!
For a complimentary consultation, please EMAIL us today!
The government has realized how tax efficient permanent life insurance is within a corporation. In January 2017 they will be implementing changes to the tax laws regarding insurance. The new legislation will be applied to policies issued AFTER 2016 (grandfathering provision for existing policies). This is the first tax change to insurance since 1982. The new legislation will eliminate some of the tax advantages using permanent insurance within a corporation.
If you own a corporation of have contacts who do, it is VITAL for you and them to learn more RIGHT NOW and come talk to us! September may be too late to be able to potentially save hundreds of thousands of dollars on taxes!
With these changes the government is trying to do 3 main things:
Provide consistency among products/companies
Update life expectancy tables
Limit the savings element within permanent insurance
They do this by making changes to:
Exempt Test Policy
Reduce savings element of life insurance
Net Cost of Pure Insurance (NCPI)
Increase of Adjusted Cost Basis (ACB) of life insurance
Investment Income Tax (IIT)
Increase cost to insurance carriers
How this will affect us:
Little impact to average policy holder
Opportunity for companies to create new products
Will continue to be exceptional investment for corporations
For more information to determine if these changes may affect you please contact Gane Financial at firstname.lastname@example.org or 705-733-9595.
I recently read an interesting article from Sandy Gallagher of the Proctor Gallagher Institute that explains what I have been saying to my clients for years regarding their “Money Mindset”. I think you might find this interesting- -Rich
Did you know that, despite their best efforts, more than 90 percent of the population keeps getting the same results, year in and year out? This is as true for students in school as it is for people in business.
If there is an improvement, it’s typically minimal—not nearly enough to make a substantial difference in their lifestyle. What’s holding these hard-working people back? One thing—paradigms.
What is a paradigm?
A paradigm can be likened to a program that has been installed in your subconscious mind. It is a mental program that has almost exclusive control over your habitual behavior.
When you think about it, virtually all of your behavior is habitual. When you get up in the morning and go to bed at night, you follow a routine. And the way you eat, exercise, work, relax and the time you wake up and go to sleep are all habits.
Now, let’s look at some other aspects of your life that your paradigm has enormous influence over. It controls your… Perception, Use of time, Creativity, Effectiveness, Productivity, Logic, Ability to earn money
The paradigm puts a box around each and every one of those areas, and no matter how hard you try, you can’t knock down the walls until you change the mental program.
How is it formed?
Although everyone has a paradigm, most of us don’t create it ourselves. We inherited it through our genetic and environmental conditioning.
You were programmed, for example, by your parent’s and ancestors’ DNA, as well as many of their beliefs—going back for generations. And that’s not all…
Pretty much everything you were exposed to as a young child also became part of your paradigm.
You see, when you were a child, whatever happened around you went right into your subconscious mind because you had no ability to reject anything. Any ideas that you were exposed to over and over again were like seeds being planted in fertile soil. They took root and became part of the paradigm that controls every aspect of your life. Now here’s the kicker… We’re not taught about paradigms in school. So here we are, 20… 30… 40… 60 years later living the same way we were programmed as little kids.
How to determine what your paradigm is?
The best way to identify your paradigm is to look at your current results. So I encourage you to take a few moments to picture your life and consider the following questions …
Do you live your days doing what you want to?
Do you wake up excited to begin a new day? Why not?
Do you want more out of life?
Do you require more money to fund your desires?
Answering these and similar questions will help you zero in on your paradigm, and identify what’s controlling the results you are getting in your life. The good news is if you’re not happy with your results, and you’d like to do better, you can do something about it.
How do you change a paradigm?
You can’t change your paradigm with self-will alone. In fact, there are only two ways to do it. One is an emotional impact. That is when something hits you so hard that your life will never be the same. It’s usually of a negative nature, but it can also be something that is positive. The second way is to change the paradigm in the same manner it was formed—through repetition of ideas. It is exposing yourself to a new idea over and over again with the goal of replacing an old belief(s) that is in your subconscious mind. To get started, consciously choose a new belief that is aligned with the results you want and the habits that will lead you to those results. Then impress that idea—by focusing on it, visualizing it and repeating it with feeling—on your subconscious mind repetitively.
You must also consciously and deliberately replace “bad” habits with good habits. Otherwise, you might form another bad habit to take the old habit’s place.
This information will delight you Changing just a small part of the old paradigm can make an enormous difference in the results you enjoy in every area of your life. But, make no mistake. You cannot change your life permanently until you change your paradigm.
Regardless of how many times you might have tried before, you CAN get far better results in your life. If one of your deepest desires includes managing your money more efficiently to increase your personal cash flow, let us help you. It’s what we do best.
Click HERE to contact us about ways “To Navigate Your Dreams to Reality”
We also offer information sessions to learn more. Click HERE for dates and to register.
There seems to be no shortage of financial advice, but that has not led to economic success for most. Too many Canadiansare having trouble saving for their own needs and wants while struggling to pay down debt and keep up with the rising costs of their lifestyle.
Many are saving in their RRSP’s, TFSA’s and other qualified retirement plans, crossing their fingers it will be “enough.” Meanwhile, even those considered relatively wealthy are often unsure of how to grow their assets while protecting them from market instabilities, and taxes.
Prosperity Economics offers a way out of the mess. It doesn’t aim to help people succeed better at flawed strategies; rather, it offers a total paradigm shift about wealth-building. Prosperity Economics questions the financial assumptions we’ve come to accept as true and provides an alternative to “typical” financial planning.
Prosperity Economics – What is it?
While sometimes hailed as the latest greatest thing, Prosperity Economics hasn’t been so much discovered as rediscovered. Prosperity Economics employs common-sense principles and strategies that preceded the rise of RRSP’s and the financial planning industry. It shows us how to optimize wealth by keeping it in our control rather than delegating our financial futures to Wall Street, big corporations, and the government.
Prosperity Economics can use traditional wealth-building tools such as owning a business, investing in real estate, and saving, borrowing and transferring wealth with dividend-paying whole life insurance. It's NOT gambling on Wall Street, or putting your nest egg into retirement programs where the government gets to tax them later.
To see an overview of Prosperity Economics vs Traditional Financial Planning please click HERE.
Prosperity Economics also represents different strategies than typical financial planning. Ask yourself these questions, should you…
Hand over all of your savings to companies who will charge “management fees,” whether or not your funds are gaining or losing?
Analyze your “risk tolerance” (i.e., how comfortable you are with losing money) while subjecting your assets to losses?
Max out your RRSP/TFSA and cross your fingers that you’ll someday have “enough” to live on, without running out?
Take tax deductions now by putting money in a qualified retirement plan, only to pay more taxes later?
Tie up all of your dollars in accumulation vehicles that penalize you for using your assets and prevent you from borrowing against them?
We think there’s a better way.
We practice Prosperity Economics because we don't believe that "typical" financial planning works very well! Commonly-accepted financial advice often does not tell the "whole truth" about your money, and it doesn't do a very good job of protecting your money, either.
Typical financial planning is “better than nothing” and will get you partway up the hill, but we want to show you how to reach the “mountaintops” of prosperity.
To explore how Prosperity Economics can help you, we invite you to visit our website www.ganefinancial.com or email us at email@example.com. We also offer bi-monthly information sessions for clients to learn more. Click HERE for dates and to register.
RRSP season is upon us and we want you to educate yourself about how contributing into your RRSP investment account may not be the best place to be putting your money. Take a look at these 7 points below and see the downsides of opening and contributing into an RRSP:
When you open and contribute into an RRSP, you are entering into a game where the opposing player is the CRA and they have the power to change the rules at any time.
You do not get a tax deduction when contributions are made, you receive an income reduction which minimizes the taxes you pay in the years the contributions are made.
If when you pass away and your spouse is deceased, your total RRSP account will be added to your estate’s income increasing the tax rate to your beneficiaries.
The tax obligation increases as your account grows.
You could pay more taxes than anticipated if your future tax bracket is higher when you withdraw than when you postponed the tax.
Your money is not easily accessible or available as collateral.
Even with an average return of 8% after taking into account: market volatility, taxes, management fees, and inflation; your net gain could be zero.
Using an RRSP as a retirement vehicle may not be in your best interest. Click here to see a comparison of Traditional Financial Planning against Prosperity Economics.
Our daughter Ginny who provides complimentary consultation for our clients, is a successful Life and Law of Attraction Coach.
This summer we had the pleasure of sailing as a family out West, and she was inspired to include her experience in her most recent blog 'Avoid Yakking all over Life'. We continuously enforce the importance of staying on track towards achieving your goals to our clients. Ginny has captured the importance of staying focused on your life goals and dreams so eloquently and humourously in this blog. Read it here!
Doing something different is NOT always better, but doing something better is ALWAYS different
Tuesday, September 23, 2014
Doing Something Different is Not Always Better...But Doing Something Better is Always Different!
Regarding your finances, are you doing the same as what your friends are doing? What your parents taught you to do? What the financial gurus are saying? Or, are you doing something different?
It has been said that 90% of Canadians must rely on government programs such as CPP or OAS to survive during retirement. Does this sound like fun? What are most Canadians told to do with their money? Number one would be to pay off your mortgage. Number two would be, invest in RRSPs or build up a similar type of nest egg.
The wealthy are doing something different. Instead of working for money, they get money working for them. They get paid while they are sleeping. Author of Rich Dad Poor Dad, Robert Kiyosaki said, ‘assets put money into your pocket, and liabilities take money out of your pocket’. Wealthy people purchase their liabilities with passive income from their assets and they purchase their assets with their earned income.
Is a paid off home an asset or a liability? Based on Robert’s definition, your house is a liability because it does not put money into your pocket. In fact, it takes money out of your pockets through payments of property taxes, maintenance, repairs etc. Can we turn our paid off house into an asset? If we were to use our equity as collateral and borrow against it to purchase a passive income asset, would this not be putting money into our pocket? If we transferred our RRSPs and other savings to true passive income assets, for example rental real estate, would this strategy not put money into our pocket? We could use this extra cash flow to finance our liabilities, like vacations, cars, home renovations etc. This will free up your regular income to purchase your assets.
Remember, different is not always better but better is always different.
Should you pay off your mortgage or save for retirement?
The following article in a recent Financial Post reinforces what I have been promoting for years now. I believe you will find it most interesting. We have financial calculators that can demonstrate the value to your personal circumstances. When deciding how to reinvest why not consider a vehicle that will grow tax free, can be distributed tax free while still allowing you access to it (without losing the growth).
Taxes can put quite a bit of pressure on our lives. Let’s take a look at an example of how big of an impact taxes has on our overall financial plan.
Let’s assume I was the greatest financial advisor and could get you 100% Rate of Return. For simplicity sake let’s assume that you have given me $1 of your money to invest. At the end of the first year I have grown it to $2. That’s great! If I was able to provide you with 100% ROR (uninterrupted) over a 20 year period, what would that amount grow to? It would grow to approximately $1,051,000.
The majority of the population is subject to income taxes. Let’s assume that you will be taxed at the lowest marginal tax rate in Canada at 28%. At your first dollar of earnings, you will pay $0.28 in taxes leaving you with a balance of $1.72 rather than $2.00. After taxes, what amount will you are left with at the end of the 20 years? Most of you will be quite shocked by this; you will be left with approximately $51,000.
You see, the exponential power of compounding is working against you when your income is taxed, losing one million (over 20 years) to taxes at the lowest marginal tax rate in Canada!
The key take away from the forgoing is that when possible you should seek to invest in a tax free environment. Does this include retirement investment plans such as the RRSP? With registered savings plans (tax deferred plans) you will most likely pay full taxes when you go to take the money out, and most likely at a higher tax rate than when you put the money in!
Are you aware of the investment opportunities that offer tax free distributions?