Over the past many years, the market place became familiar with the “Buy term and invest the difference” advice. I always had a strong opinion about this phrase. In spite of being a hatred subject of discussion, Life Insurance will end up becoming one of the most important purchases many people will make in their lifetime. Few policy owners will become aware of its true value before so many years have past.
Although this article was written using facts and figures from an United States Life Insurance company, historical data from major Canadian Life Insurers are virtually identical. Facts and figures used in this article can be applied to Canadian consumers who have already, or will purchase Life Insurance in the future. Certain tax rules may differ within the Canadian legislation.
Before you purchase any other life insurance products in your lifetime, set aside 10-15 minutes to read this article to completion.
Globe & Mail – top governed companies and what makes them among the top 5 year after year
When we think of professional athletes, most people envision the Pro North American sports like NFL, NBA, NHL etc.. and their swanky salaries. The reality is that the vast majority of professional athletes earn a very simple living shaped by government carding (AAP), a few sponsorships and maybe the odd cash prizes for winning certain events. If you just pay attention to the next Olympics when they feature the “athlete profile”, you will realize very few are financially secure, let alone part of the upper class. And so these athletes will have no option but to look for a new career once their athletic heyday is over. Some retired athletes end up working as trainers, coaches or getting a marketing job in the industry they come from while others will be looking outside their comfort zone for alternatives with scalable economics.
In 2005, I made a big career change that led me to what I do today. This article features some of the highlights but it’s also an eye opener for athletes who are determined to become educated and use their abundant dose of ambition to build a great future for themselves.
Read article here http://www.cflpa.com/sun-life-career.html
Lets assume you’re 35 years old today and planning to retire at 65 (at least be able to work for joy, not for necessity), you’ve got $100,000 set aside and you’re going to save an additional $20,000 per year earning a 6% compounding rate of return (after tax) for 30 years, you’ll end up with $2,155,512 at age 65. Sounds a like a good chunk? It isn’t.
Maximum CPP pays less than 13K per year today and OAS is around 7K. Both are indexed but you have to be eligible. CPP requires contribution. OAS requires you to live in Canada for about 40 years and the amounts are means tested. That’s a heck of a retirement! So forget the Government.
Assuming you can get a 5% return on that 2M during retirement, that’s $100,000 of taxable income annually, plus CPP/OAS. Lets discount that 2M at a 2% rate of inflation for 30 years and it’s worth about half, or 50K of taxable income when you enter the Bronze years (I don’t know why they call it the Golden years?). If you’re someone who’s accustomed to lavish lifestyle and expect it to continue for as long as you live, you will need several millions of dollars in investable assets, real estate or business income to make it happen. The majority of people in our society rely on “hope”, “luck”, “television” “the Government” and “internet” to provide them with a major financial break through. What is your plan?
Maybe you’ve got a lot more than 100K saved, maybe you own real estate, maybe you own a business, maybe you’re in debt, perhaps you’ve won the Ovarian Lottery and expect a juicy inheritance. In any case, when is the last time that you’ve had an honest look at your own personal retirement plan? If you’re like most people, the answer is never. Most people are also going to be retiring below poverty level.
If you have an average IQ and you’re not restraint by health issues, you have the opportunity to create financial freedom in your lifetime, regardless of your age. There are many excellent professional financial planners able to show you what it would take to live the lifestyle you want in retirement, based on where you are today. Procrastination is one of the most expensive diseases. There’s also an inexpensive cure for it called “taking action now”. Have a financial plan executed in the next 30 days and get serious about your future.
You are about to learn one of the biggest secrets in the history of the world…it’s a secret that has huge effects for everyone who lives on this planet. Most people can feel deep down that something isn’t quite right with the world economy, but few know what it is. Gone are the days where a family can survive on just one paycheck…every day it seems that things are more and more out of control, yet only one in a million understand why. You are about to discover the system that is ultimately responsible for most of the inequality in our world today. The powers that be DO NOT want you to know about this, as this system is what has kept them at the top of the financial food-chain for the last 100 years…
Learning this will change your life, because it will change the choices that you make. If enough people learn it, it will change the world…because it will change the system . For this is the biggest Hidden Secret Of Money. Never in human history have so many been plundered by so few, and it’s all accomplished through this…The Biggest Scam In The History Of Mankind.
I am not pro gold and I don’t advise that everyone should plunge into gold or other precious metals. However, I think everyone should watch this video.
Watch video here: http://hiddensecretsofmoney.com/videos/episode-4
Have your parents, teachers, friends, mentors or siblings ever recommended that you should go to school and chase a career path you have no passion for because society deems that profession as something to be of high respect, normal, secure, accepted, safe, guaranteed, or comfortable? My advice is don’t touch it with a 20-foot pole – it’s not worth giving up your freedom. Everything society believes to be secure is pure illusion. The only thing guaranteed in life is that tomorrow will be a total surprise.
How much money do you need deposited in your bank account each month to be happy? For most people, that number would have to be enough to cover all basic living expenses…and then some. This includes housing, food, clothing, transportation, entertainment, vacations, a little safety net, and other miscellaneous categories. That number will vary for every person. For some it’s $3000, for others it’s $45,000, and some unique family might require $300,000/month. For a homeless person it might be $400. As an example, I’m just going to use $9,000/month, in which case your pre-tax income may have to be closer to $15,000 depending on the jurisdiction you live in, the type of income and how it’s taxed. So, if $9,000 takes care of all your bills including the fun stuff, how should you account for the other special stuff?
It would be self destructive to rely on buying cool things as a constant source of happiness *see Two Ways to Kill the Hedonic Treadmill. Although treating yourself to a new sports car, an expensive vacation, a $40,000 golf-club membership, a new boat, an expensive watch, NHL season tickets, or just being able to drop of a bunch of money for whatever floats your boat at the moment, can be a tonne of fun and certainly worth the experience, even it it’s not a necessity.
However, I personally would never trade my no-alarm-clock-do-what-I-feel-like-doing-everyday lifestyle for a must-show-up-on-time-to-meetings-full-of-commitment-hectic life just so I could afford to buy another toy. The value of living well, simply, without a job and free of all expectations is outrageously more valuable than being a slave to a schedule with an alarm clock, lack of sleep, meetings and commitments, just to be able to keep up with the Jones’. I do know of a winning formula that can get you almost anything you want in life without compromising your freedom.
Figure out what that monthly amount is for you and find a business model that can provide recurring revenue. Learn everything you can about that business and hit the ground running. Otherwise you can save and invest your money to get there.
Once you’re retired with nothing but time, you can head down to the local Porsche dealership, custom design the car you want, take the price tag of 160K or whatever it is, and schedule a temporary business project (could be consulting, sales, marketing, freelance, real estate or anything). Allocate the revenue from that temporary project to paying down that new toy of your dreams.
Here’s the golden variable: this temporary project is not a necessity. It’s not a requirement. It’s not forced upon. You don’t have to do it. You’re now working for joy, not for necessity. Huge difference. Apples vs oranges. Black vs white. Day vs night. Earth vs ocean. Tea vs gasoline for breakfast. Working for joy, not for necessity. I live my life by this mantra. This simple shift of semantics can give you all the excitement you’ll ever need to continue working on temporary projects. You’ll accomplish even more without ever feeling stuck, or getting lost in the rat race. The silver lining lies within the following three words: choice, option, and flexibility.
Design your life, your career, your business and your lifestyle so that you’re working for joy, not for necessity. It’s one of the best feelings in life.
How many times have you read some boring articles telling you that in order to get ahead financially, you should cut down on spending and watch your pennies? How many so-called “financial experts” talk about budgeting, watching expenses, cutting off your credit card and so on? To me, this is total B.S. Has anyone ever stopped to think for a second that perhaps the real problem for being broke is not what you’re buying? There are people driving Ferraris, flying around in private jets and buying $600 dinners every night and maybe, just maybe, they aren’t so worried about using their toothbrush to scrape out the last bit of toothpaste out of the tube. So please explain to me how saving $2 on a box of cereal, and spending 6 hours a month washing and ironing your own clothes so you can save $25 on dry cleaning is going to help you get out of your financial mess, or even more idiotically, somehow get you rich.
The real reasons why you’re broke have nothing to do with buying discounted toilet paper. Now, everyone loves a good deal, including me, and I try to get a deal on everything I buy if it doesn’t consume too much time. But the reality is that being cheap is not the remedy to wealth. When I see those organic eggs on sale for $4.99 instead of $8.00, I’ll certainly pick up 4 or 5-dozen, but I don’t rely on those yellow stickers to set me up financially.
Now, here are 4 REAL reasons why so many people are messed up financially that financial experts will never tell you.
1. Your personality sucks
Some people are just not interesting people or even pleasant to be around, therefore making it harder to attract attractive people, business opportunities, high level employment and good jobs. Working on your personality, learning to get right to the point, and being known as a straight shooter with a spice of humor may be more valuable than a university degree.
2. You waste too much time
We live in a competitive world and every day it’s getting tougher and tougher to segregate yourself from the masses. Hanging out with buddies, playing video games, having a pint at the bar and scrolling through two hours of your newsfeed on Facebook isn’t going to do anything to improve your personal finances. Difficult to acquire knowledge, applied intelligently, is what you need to advance financially. You have to be willing to leave your kids and friends behind for a while so that you can work on yourself and learn new skills.
3. Don’t listen to average people
I only take personal financial advice from people who are wealthier than I am, with the exception of my accountant with regards to business and tax planning.
4. You may have spent too many years in school
As you might have figured out by now, school is not the favourite playground of today’s top entrepreneurs. It’s not where the magic is learned. School will definitely give you an edge by teaching you things like economics, business accounting and other important skills that you’ll need along the way. But the harsh realities of business life are not taught in school. You can’t learn how to negotiate a real business deal in school. Copy writing skills that can generate millions of dollars in sales from a single web page are not taught in school. You can only learn it through practice, trial and error, and studying the performances of those you aspire to be like. Designing a web banner ad that’s going to drive hundreds of thousands of people to your site isn’t stuff you learn in a classroom. You learn it with endless testing, and of course observing what the top players do. When you’re struggling to understand why your retail business is losing market share against other competitors, reading over the notes that you took in school isn’t going to provide you with the answer. The time you spend studying successful business models, getting to know the right people, reading appropriate books, going to seminars and listening to successful speakers, and investing money back into your personal development by gaining knowledge and skills taught by real entrepreneurs (not school teachers), is definitely time well spent (see point #3).
Call it shallow or living without purpose, but until not long ago, everything I did in life since I was about 19 was centered on making money. The friends I made, the places I visited, the activities I joined, the clothes I wore, the cars I drove, the way I styled my hair, the books I read, the movies I watched, the places I lived, the travel I did, the seminars I went to, the pep talks I gave myself each morning, and even the food I ate. Everything was motivated by a monetary intent…except who I dated
Why talk about this? Because there are more people than you could imagine living this radioactive life. They are usually in business for themselves; commissioned sales-people, financial service professionals, real estate sales people, or even certain types of medical professionals. They’re your neighbour attempting to bond with you at a BBQ, your child’s overly friendly sports team coach, the guy sitting two rows down from you at church who arrives an hour early, the one who organizes all kinds of sport and social events to meet new people for business purposes, the chatty odd person at the gym, and the highly socially skilled friend who attends every get-together in town.
I’m speaking as someone who’s been on both sides of the track. It didn’t come naturally to me, but the urge of making money was stronger than the continuous discomfort of being an inorganic extrovert. It’s what you’re taught in the dark underground world of sales and marketing business schools. You learn to live the role because it’s how most people become successful in sales. It’s what your sales manager teaches you to do. It’s what your colleagues do. It’s what is written within the pages of top sales-guru books. They say if you’re in sales, your mouth is your business and you’re open 24/7. You must act the same everywhere you are. It becomes second nature so that you don’t even think twice about it. It becomes a way of life.
However, it’s not necessarily the best way to achieve happiness, because happiness is not something you nurture with synthetic feelings and habits. There are always the rare socially gifted extroverts who start cringing the minute they have no one around to talk to, and who enjoy the salesman life more than a 12 year old at Disneyworld, but those people are hard to come by. Most salesmen start off “faking it until they make it,” while doubting themselves all the way along.
Perhaps because I no longer have the same financial pressure I once had, the idea of living my life today as a salesman/ walking-billboard feels repulsive. When I look at my friends who don’t rely on networking to make a healthy living, they seem so much happier. They hang out with whom they want, and choose their company based on individual personalities, not because a person appears to be a potential client or is seemingly well connected. They enjoy reading books and magazines not related to making money. They spend time on holidays not feeling guilty and unproductive. They wear comfortable practical clothing not designed to project a certain image. They drive vehicles that suite their personal preferences instead of what’s appropriate for someone in their position. They don’t need to sport that politician haircut to feel accepted.
There are other ways to build a reputable personal brand without becoming a socially synthesized networking robot, especially with all the technology available today that wasn’t available even 10 years a go. I made over 30,000 cold calls to build my business from scratch. Every single one of those calls felt like a chronic disease poisoning my wellbeing. I’ve realized, after the fact, that constructing a reputable personal brand has all to do with the ability to build truthful profound relationships with fewer people, those of whom actually matter. It’s not about pounding the phone 8 hours a day hoping to hit a 3% conversion rate. You’re better off learning how to connect emotionally without monetary intent. It has to do with becoming valuable and educated so that people come to you for your unique expertise. Build a brand using the web as a medium to let people make up their own mind about you, instead of you chasing them like an unwelcome pest. Do things with complete integrity, yet with enough confidence that it doesn’t matter what you wear or what car you drive. As Larry Page (Google CEO) said, “You can be serious without a suit – the suit isn’t doing the work, you are!” There’s a monstrous difference between the salesman and the customer making the first call.
This blog isn’t about making money. There’s nothing for sale here and I don’t care who reads it and who doesn’t. That’s the beauty of doing something without monetary intent. Maybe someday I’ll come up with a digital piece that has a dollar sign on it, but for the time being, I’m trying to find a home for all those designer suits hanging in my closet. If you’re 42 regular with a hockey size butt, hit me up!
Reflecting on the past and present situation has us more often than not focus on our weaknesses and flaws. The things we did wrong, the things we need to improve upon, and all the things we could have done differently.
If a child came home with a grade-card that had “A, A, C, F” on it, what grade would deserve the greatest attention? As much as we wished our own parents had said “A,” we know that in reality most people would focus on the “F.” Sadly, the child also focuses on the “F,” because of external influences. Both the parent and the child will lie awake at night worrying about the “F” – how it’s going to affect the overall grade, the long-term prospect of education, and life in general. Basically the future is over before he or she even had a chance to get started.
The world is crowded with immensely talented people who never amount to very much because they spend too much energy and time trying to overcome their weaknesses. Every human is gifted at something, but only the ones willing to recognize their natural talent and pursue a career path that draws on those strengths, instead of their weaknesses, will stand a chance at ever achieving their full potential.
This is where self-denial must not win over self-honesty. It would be outrageous to expect any 100-meter Olympic sprinter to ever win an Olympic marathon, no matter how many steroids they ingest. Our physiological and psychological DNA is inherent in all of us. We can tweak it, stretch it, mold it, shape it, argue with it or we can accept it and then leverage it to accomplish greatness.
I’m not saying that you should be clueless about your weaknesses. In fact, total early awareness is critical so that you can decide sooner rather than later on a business model or a career path that accentuates your natural strengths.
I was recently walking along one of Thailand’s beautiful beaches, and I came across a typical beach vendor who carries with him a mini handmade BBQ and handmade stand. I bought a fresh coconut, mango and a corn on the cob, the total cost of my mid-afternoon snack amounting to less than $6 CND including some complementary bananas. I thought about something that I already knew, but until that moment, didn’t quite realize the full extent of it.
This vendor’s ultimate objective is to sell his entire stock of corn, coconut and mango before sunset. He has approximately 20 ears of corn selling for 60 Baht each ($2 CND), a dozen coconuts for 60 Baht each as well, and about 20 mangos at 50 Baht each ($1.50CND). Let’s assume he gets rid of his whole inventory while sitting in the heat for 10 hours without a chair; he will generate a gross revenue of approximately $90, minus the cost of goods, plastic utensils, bags etc. to achieve a net profit of 50% or $45 in any given day. (I doubt he pays any taxes). In reality, he’s not going to sell out his entire stock of goods during low season (that is most days of the year), because there are many other vendors a few meters away also competing for the same tourist business.
I could replicate similar analogies of street vendors selling deep fried chicken, banana pancakes and whatever else you can imagine. If the same vendor lived in New York City for example, he would be selling cheap hot dogs for $4.50 each to overweight gluttonous eaters who could easily order 3 dogs and spend close to $15 with tips. Cheap hot dogs cost less than 75 cents for the vendor.
The lowest airfare from Thailand to China is around $300, and to North America, it’s $1200. The vast majority of people living in countries like Thailand (far from 3rd world but has a low currency), or any developing country, will never have the opportunity to see the world like we can. Their ability to see and explore life is via the Internet…if they even have access to it.
The guy selling hot dogs in NYC has won the ovarian lottery because he is free to go any places he wants. His only limitation is himself, not the country he was born in. We underestimate how lucky we are to simply live in a country with a strong currency.
Next time you feel like b!t&%ing about taxes being too high or your dentist charging too much, don’t forget that you won the ovarian lottery. Many people don’t even know what a dentist is. Next time you catch yourself wishing you were able experience new adventures and see the world, remind yourself that your excuses are only your own.