Happy New year everyone!
I hope 2016 was better to you than the media portrayed it to be. For the last few months of the year you’d swear nothing good happened. I think those people just didn’t have time to look at their retirement savings. The year was pretty solid overall for the markets, the Dow Jones was up 14.4% as of closing just before Christmas.
Very solid year for the Dow Jones
For Canadians, the TSX composite index was up 17.8% over the same time period! So, if your investments are close or matching these indexes you’re looking at a possible 14-18% return for one year. To put that into perspective you’ll double your portfolio in 5 years without any additional contributions! Read more
How to make money in real estate? That’s a very popular question and has tons of answers! You can literally make money with lots of different options, and each option has multiple ways to execute them. On top of that, you can apply each of those options to different areas of real estate like residential, commercial, industrial, etc. I could go on for a while with these but I won’t. Soooo see ya next week!?
NAAA! I’m just kidding…had ya for a minute though didn’t I? You thought I was going to take my dozens of blog dollars and disappear for ever didn’t you? Actually, I’m just going to touch on a few popular options and a few lesser known options on a higher level. In a future post I’ll break each of them down in greater detail, but for now we’re just going to dip our toes in the water on how to make money in real estate. Read more
Money tips for any age
Here are four money tips that you will either have success with, or you will regret not following. The choice is yours!
Never finance depreciating assets
If you’re borrowing money and the asset depreciates in value you’re paying much more than you think. Debt is not a bad thing if used correctly. If you use it to purchase properties that increase in value it can be worth it. You can borrow at 3% on a mortgage and you gain 4% each year on average on that house value, your net worth will still be increasing. If you buy stocks on a margin and they gain more than the cost to service your debt, you’re still ahead.
It’s when you buy everyday products on a credit card and don’t pay it off before you incur interest when you fall behind. With a depreciating asset you’re losing money over time on owning the asset and you’re also paying interest to own it. Look at owning a new car for an example. Buying a new car at 0.9% interest is a pretty good deal as far as finance rates go, but you’ll still pay more to lose money. Buying one at 0% is even better, the car will depreciate but you won’t be on the hook for any interest. Read more
Passive Income is the best income
Why is passive income the best income? Well first let’s break down what passive income is. Passive income is earnings derived from equity investments such as rental properties, dividends, enterprises, or limited partnerships that you are not directly involved with.
Basically you give someone money and they give you a small amount of money back for an indefinite amount of time. The time could be forever provided the equity in your investment doesn’t go to $0. Passive income can be derived from numerous sources, the majority of which are available to everyone with minimal efforts.
What are some common sources of passive income?
Passive income can come in many varieties. I’ll touch on a few of the most common ones Read more
5 Tips For Beginner Investors
Investing your money for the first time is a daunting task. Sure, it can sound pretty exciting; the idea of putting money away and watching it multiply over time would be appealing to anybody, and if you do everything right, that’s just what will happen. But to actually confront the strategies, challenges, and mental hurdles involved with setting up an investment portfolio is different than just imagining things going well. It takes a lot of diligent work, and to some extent there’s a leap of faith required.
But never fear. Millions before you have invested, and done so successfully. As a result there’s plenty of good advice out there for when you’re just getting started. What follows is by no means a comprehensive list, but these are five general tips that can help to get you in the proper mindset to approach your first investments. Read more
Pokemon Go is the most popular thing in the world.
If you haven’t heard of Pokemon Go yet than you’re probably living under a rock. So if you’re living under a rock and don’t already know; Pokemon Go is quite possibly the biggest fad? Trend? Phenomenon? I’ve seen in my life time. Definitely one of the most visual ones. Ever since it was launched I’ve been seeing articles popping up everywhere online. Then when it was launched in Canada I couldn’t avoid it.
In the last week I’ve seen hundreds of people playing Pokemon Go at all hours of the day. Everyone has seen at least several news articles on it. Most of them are about a player that had something happen to them that happens to thousands of people each day. Now because the news can relate it to Pokemon Go it’s now a “story” or hoped to be a viral piece. Right now it seems like everyone is either playing it or trying to relate their product to it for the extra publicity they’re hoping to cash in on. I even saw a fire department put it to good use among many other great ads.
The biggest sports deal EVER?
I’m not sure how many of you would have heard by now as it was just announced on Monday last week but the biggest sports deal ever was officially confirmed after a few weeks of rumors in the industry. No it wasn’t the Taylor Hall trade or PK Subban trade, they’re pennies compared to this monster. The UFC, better known as the Ultimate Fighting Championship, was sold for a record sum of $4 BILLION dollars. Not bad for a 15 year run after a purchase price of $2 million back in 2001.
To put that into perspective, here are the top 5 most valuable sports franchises according to Forbes(caution, it’s a page per each franchise kind of list if you wanted to see the whole thing it’ll be a lot of clicking): Read more
There’s tons of websites and guides out there to help you get rich fast. Well here’s another list for you to read, but it has nothing to do with getting rich quick, or even getting rich at all. Here’s 7 ways to NOT become a millionaire as if we NEED more help with that!
- Don’t take advantage of your employer matched GRRSP contributions – This is an instant return on your investment, but you probably don’t want to do it because it’s a hassle or the management fees from the designated broker might be a little higher than your own Canadian Couch Potato Portfolio and you can do better without their money weighing you down. Turning down a 100% return to save 1% is a sure fire step to ensure you do not become a millionaire.
- Don’t negotiate a salary – Employers are ALREADY offering you more then your last job AND they said that’s as high as they’ll go, so you don’t want to make them angry by asking for more. In my day to day work I’ve had the pleasure of interviewing and sending job offers to people and they almost never negotiate their salary. This is fantastic from my point of view because I just got an employee on sale for that project.
- Stay in one job miserable job – After all you should be thankful you have one right? Some say that if you stay in your jobs for more than 2 years you can make about 50% less than those who don’t. So that’s a pretty quick way how to not become a millionaire just by staying put.
- Don’t teach yourself about personal finance – They don’t teach us anything in school for a good reason, right? Public school boards totally have our best interests in mind when it comes to teaching us life skills. I constantly use Pythagorean’s theorem and dissect small animals at my job.
You’ll probably want to write down these books to make sure you never accidentally read them: The millionaire teacher, The Wealthy Barber Returns and well really just anything about money, don’t bother with it. School taught you enough, after all you came out of high school knowing how to file your taxes right?
- Keep up with the Joneses – They’re financing everything and so should you! After all it gives everyone the impression you’re doing so much better in life then they are and that’s how you want to live right? Leverage every purchase you make so the majority of your income is going to interest payments and while you’re at it make sure a few of those purchases are on credit cards. The quickest way to never be a millionaire is to always carry a balance from those designer goods on your credit cards so you rack up that 18-21% interest. If you’re paying enough interest each month that’s an excellent way to not become a millionaire!
- Invest in highly volatile stocks and trade with your gut – There’s people that study the markets and world trends for a full time job and they can’t predict how the markets will go, so trading with your gut is the best way to not become a millionaire, right? Just buy and sell as you see fit, you don’t need any training but if you’re going to take some training make sure it’s those from one of those get rich quick guys you might see paying models to promote on Instagram and on some YouTube channels. They’re definitely a scam, so they can certainly help you to not become a millionaire.
- Don’t learn from your mistakes and accept responsibility – Once filed for bankruptcy? It probably was just bad timing in the markets and will never happen again! Definitely repeat those same steps to ensure you’ll never become a millionaire.
9 Great tax deductions for income properties
Tax season is just about over for everyone and I was able to get a pretty nice return thanks to my tax deductions for income properties. You may know by now that I have two income properties. If not, go and read about my first one which became an income property by accident. When you’re done there you can check out my search for a purpose bought income property. Go ahead! I’ll wait right here!
Why so many income properties?
Well besides the fact they can make you tons money in four different ways, any accountant (always helps to check with an accountant if you’re going this route, they can save you lots of money!) could tell you all about the tax deductions for income properties. Read more
So a year has gone by since my first Q1 update and basically since I started this blog. So I’ll be looking back at the entire year to see how I did with my goals. First a quick recap of the year.
I started this blog in the last few days of March in 2015. I started it with the intention of just getting a creative outlet in my life that I can share some thoughts and stuff on my trips and inspire people to start planning their financial futures a little better and earlier then most start to plan. That idea turned into more of a focus on personal finance since my personal life took a big turn and I wasn’t in a good place to talk about it, even typing this now is difficult.