There are some things that the rich do and the way they think that makes them different from you and me. These habits contribute to their ability to build and maintain long-lasting wealth and financial independence across several generations.
When it comes to making financial decisions most people focus on either\or scenarios; that is making a tactical decision that may or may not reflect a larger financial planning or wealth accumulation context.
We often see these types of isolated, one-off decision choices in media articles that pose dilemmas such as: Is it better to invest in an RRSP or pay down your mortgage? Should you take your tax refund and invest in an RRSP or go on Vacation? Are TFSA’s better than RRSPs? Should you pay off your credit card balance or invest in an RRSP? You get the picture.
Quantitative Easing, otherwise referred to in the media as 'QE', refers to governments printing money out of thin air in order to stimulate economic growth. The US ended their program of QE in late 2014. The impression this left with many people was that the need for economic stimulus ended.
This also goes hand in hand with the media theme that U.S. consumers have been deleveraging by paying down household debt such as mortgages, credit cards, car loans etc. since the 2008 credit crises. The reality is much different than what is being portrayed in the mainstream media.
Gordon and Anne lived in the same house for over 30 years. Now that their children are grown and it was becoming more difficult for them to manage the house, they decided to downsize. Here is what Gordon and Anne did to get the best price they could when they sold their home:
As they take the big step of moving out of their parents' home and into their first apartment or other living quarters, the last thing on a young person's mind is insurance. Yet, this is an area of great importance as they also begin their journey on the road to financial wealth and health.
With the RRSP contribution deadline of March 2nd fast approaching many people will reflexively make a deposit to their RRSP. Many will use online banking to throw money into the RRSP at the last minute vowing to figure out how to invest it later. But life gets in the way and later never happens and the contribution sits in daily interest account earning little or no interest.