Tag Archives: saving

There is No Secret Sauce

There is no secret sauce blog header



I’m going to let you in on a not so well-kept secret from the financial services industry. There is no secret sauce. There is no specific investment, decisions, technique, or strategy that is going to make you rich. There is no one thing you can do that is going to make you successful.

a picture of a special sauce


In fact, I’d be that if you gave up and stopped trying to find an easy one thing you can do to be successful, you would have a much higher chance of getting there.


You see, when it comes to money, building wealth is not a matter of making 1 or 2 correct decisions. Building real wealth is a series of small decisions that over time add up to generate enormous value.


RESPs, How do they work?


If your goal is to save to help a child get an advanced education, there is no better method than the RESP.


The RESP, or Registered Education Savings Plan, is a tax-deferred investment account that the government will deposit grants into based on your contributions and income.



That sounds great, but it may not make sense to everyone, so I’ll explain it a bit better.


How to retire comfortably

How to retire comfortably


One life. One chance. Unfortunately, that also means you only get one chance to make sure you live a happy comfortable retirement.


You see, it is your choice whether you want to spend your retirement working as a greeter at Walmart, or if you would rather spend it traveling.


I’m going to show you how differences in your savings rate determines the success of your retirement.


I’ll look at three examples. The first individual, Joe, will save 5% of their after-tax earnings. The second individual, Barb, will save 10% of their after-tax earnings. Finally, the third individual Sam, will save 20% of their after-tax earnings. Let’s assume that all three of them earn $60,000 per year after tax, start saving at 30 years old, retire at 65, and live until age 90. We will also assume they all earn 6% on their investments while working and 4% on their investments in retirement.


Joe only saves 5% of his after-tax earnings, or $250 per month. By saving $250 per month for 35 years Joe manages to save up $345,073. He expects CPP of $1,175.83 every month and OAS of $613.53. Joe can also expect to be able to withdraw $1,800 per month from his investments until he passes at age 90. This sets Joe up for a gross retirement income of $43,072 every year.