The Magic of Compound Interest

Albert Einstein stated, "The most powerful force in the universe is compound interest." Being infinitely more brilliant than myself, Einstein knew that as simple of a concept compounding can be, applying it is extremely powerful.

Let me illustrate an example. Let's pretend I have an offer for you. The first, a million dollars from my left pocket. The second, a shiny penny from my right; however, that penny will double each day for thirty days. Which would you prefer to have at the end of the month? The one million dollars or the doubling-a-day penny?Most of us would opt for the million and why not; that's a logical choice. Let's see how the numbers unfold.

Read the full article here:
http://www.walletpop.ca/blog/2011/05/24/the-magic-of-compound-interest/

Burn RRSP to pay off credit card? Globe & Mail's Cash Clash

Jon, 40, and Adrienne, 35, Toronto

Should she ditch her underperforming RRSP? After a decade, the $5,000 fund is going nowhere, and this mom of two is fed up – she wants to cash it in to pay off her credit card. Her husband thinks she should put up with short-term pain for long-term gain.

Read the full article and my advice here: http://www.theglobeandmail.com/globe-investor/personal-finance/cash-clash-burn-rrsp-to-pay-off-credit-card/article2024590/

Welfare or a McJob for now? Globe and Mail's Cash Clash

Amir* and Leila*, 39, Tehran

On welfare with an MBA? For this Iranian-Canadian couple, the global financial crisis hit hard. Deep in debt, they’re still trying to get back on their feet after he lost his job in Dubai. With plans to move back to Canada this summer, she thinks their only option is to go on social assistance. He’s not sure what to do.

Read the full article and my advice here: http://www.theglobeandmail.com/globe-investor/personal-finance/welfare-or-a-mcjob-for-now/article2008201/

Should Couples Have Financial Secrets? Part 2. AOL's WalletPop Canada

There IS an easier way than keeping financial secrets, and it starts with you saying "yes" to the following question. Could you have lived on 90 percent of your income for all of the years you have worked thus far? Would you have died or been kicked out on the street? Could you have made it? Of course you could have. After all, there are thousands of Canadians that have had to take pay-cuts over the years and many that have stayed at jobs that have cut their salary more than 10 percent. Although it is abundantly obvious that we could have made out alright if we just lived on 10 percent less income each year, as a financial professional, I can assure you that most Canadians do not. Somehow we always pay our bills but rarely ourselves. If the roof needs repairing, we always find the extra money. Or if Johnny needs new glasses, we manage to muster up the available cash, but no matter what level our income is at, our expenses always seem to catch up to our income or even exceed it.

Continue reading to find out about The Banking Game here: http://www.walletpop.ca/blog/2011/05/03/should-couples-have-financial-secrets-part-2/