I hope everyone that was able to had a great long weekend. The weather was beautiful, so I hope you were able to take advantage of that somehow. :)
I thought this week I would write a post that is more a quick reminder; some repetition for emphasis, if you will, haha. I believe that it is always good to be reminded of certain things and in the personal financial world one of those things is that personal debt is manageable, you just need to have a plan.
Here I will bring a couple things to your attention. Have a look at them if you desire.
Got a debt headache? You're not alone: Video
Calculate what that dinner will really cost you: Article
One of the best ways to control your debt and work towards eliminating it is to create a schedule. There are two ways to consider how to create an appropriate timeline: 1) How much can I put aside each month, or 2) When do I want my total debt to be eliminated.
Depending on your circumstances, there may be options that you do not even realize exist to make that debt load much smaller. The best way to discover these is by talking to a debt counselor, debt consolidator or a financial advisor.
Since the majority of the time debt is self-inflicted, always remember that you also have the ability to eliminate it.
Have a great week!
Matthew George
Tuesday, August 4, 2009
Monday, July 27, 2009
I Do.. Want To Dance
I had a couple topics in mind that I had wanted to talk about this week: The loonie hitting a 10-month high, and what on earth was going on between RIM and Nortel and how that ended by a surprise appearance of Ericsson. If you have no idea what that means, then I guess I am a bigger nerd than I thought....
But, instead, something else caught my attention as I perused the online world: Jill and Kevin got married. You didn't know? Don't worry, outside of the 300 so people that were there, no one else in the world would have either. But, as of July 27th, 8.5 million people know that Jill and Kevin got married, and that they did so in style.
I am a YouTube fanatic, and this video has grown in popularity faster than any other one that I can remember. Have you seen it yet? You really should do that now! Right Here
The first thing that has to come to your mind is this wedding is going to be a party, no questions asked, and I am willing to bet that it is an open bar! If you were sitting there thinking "just another wedding *sigh*" your opinion has no doubt been changed, and if it hasn't, you must have a type of OCD that causes you to avoid any type of fun-ness.
There is a saying that how your wedding day goes is how the rest of your life together is going to be. If it's full of hysterical emotions, expect the next 50 years to be full of the same. If it's a chaotic compilation of disorganized events, guess what you're in for on your path to bliss.... But if you're Jill and Kevin, I have to take a stab and say that their life is going to be full of excitement, laughter and happiness.
From all 8.5 million viewers and counting, we wish you all the best!
Thank you for being different and may we all learn from you.
Have a great week!
Matthew
But, instead, something else caught my attention as I perused the online world: Jill and Kevin got married. You didn't know? Don't worry, outside of the 300 so people that were there, no one else in the world would have either. But, as of July 27th, 8.5 million people know that Jill and Kevin got married, and that they did so in style.
I am a YouTube fanatic, and this video has grown in popularity faster than any other one that I can remember. Have you seen it yet? You really should do that now! Right Here
The first thing that has to come to your mind is this wedding is going to be a party, no questions asked, and I am willing to bet that it is an open bar! If you were sitting there thinking "just another wedding *sigh*" your opinion has no doubt been changed, and if it hasn't, you must have a type of OCD that causes you to avoid any type of fun-ness.
There is a saying that how your wedding day goes is how the rest of your life together is going to be. If it's full of hysterical emotions, expect the next 50 years to be full of the same. If it's a chaotic compilation of disorganized events, guess what you're in for on your path to bliss.... But if you're Jill and Kevin, I have to take a stab and say that their life is going to be full of excitement, laughter and happiness.
From all 8.5 million viewers and counting, we wish you all the best!
Thank you for being different and may we all learn from you.
Have a great week!
Matthew
Monday, July 13, 2009
Oil Is Starting Its Shift
Shifting to what? First, let me explain my thinking on Eco-friendly cars (i.e. hybrid vehicles, full electric vehicles, hydrogen vehicles) and their so called battle with oil vehicles. Eco-friendly vehicles are seemingly non-existent, yet people seem to developing an increasingly massive awareness about them, especially here in North America. If you have been to an auto show in the last 3 years you will know that fuel saving, eco-friendly cars are dominantly displayed at them. Yet, we just don't see that translating onto the roads. Why is that? Well, your self-titled socially responsible, eco-individual will tell you that it is because the big oil corporations are continually behind closed doors making sure that vehicles that use less oil will never become mainstream. Then, on the other side, you have the V-8 petrol heads saying that driving a vehicle is meant to be an exhilarating experience and the reason why people don't buy hybrid vehicles is because they are completely exhaustively boring.
You may or may not fit somewhere in between those two definitions. I myself have my own opinion. The reason why we don't see very many eco-friendly cars on the road is this (for these arguments I am going to be referring to hybrid vehicles because electric cars are not practical for everyday use since they can't travel very far and hydrogen cars have a lack of infrastructure to fill them):
1) They actually are not that eco-friendly (if you don't believe me, consider that a Toyota Prius, throughout its manufacturing process, will contribute as many green house gases as the making and fuel consumption that a typical oil burning car will. And you don't even want to ask what happens to those giant batteries).
2) The MPG of a hybrid is not the end of having to fill up at the pump. If you are driving only on the highway, you are better off driving a V-6 with 350 horse power, and if you are driving in the city you are better to be driving a clean diesel powered car.
I think that most consumers after they do their research see these same points that I do.
Here is where we seem to be short-sighted though. I am fairly confident in saying that the eco-friendly cars we see on the road today are nothing more than a trend and a quick cash grab for manufacturers. I don't think it is difficult to conclude that the large vehicle manufacturers have in their locked up rooms right now a vehicle that does not need oil to run, can be powered for very long distances and causes no harm to the environment.
Don't believe me? In 1969 we put a man on the moon, in 1945 we figured out how to take a simple atom, split it in two and consequently have the ability to destroy the world. It is tough for me to believe that the combustible engine, which is proven to be one of the least efficient engines, is still the best source of power for vehicles. Call me crazy!
Once you are comfortable with the fact that the sale of cars and oil is a business then you can start to think a little more clearly. For example, let’s look to technology. Five years ago you couldn't buy a camcorder that shot video in HD, now you can fairly easily. But, five years ago a company like Sony knew that they could make camcorders that shot in HD. This is why we have these labels in the tech market referred to as generations: the I-pod gen 1, the I-pod gen 2, the I-pod gen 3... and that will keep going. There is more than likely already an I-pod gen 10 in the works, but think of all the sales they will make off the gen 4, 5, 6, 7, 8 and 9.
I believe the same thing is being done with the shift from oil to another form of fuel for vehicles. It would make absolutely no sense for an oil company to shift from working with oil to another form of fuel overnight. There is too much oil left, and there are too many vehicles that use oil. It makes no sense for manufactures to start only making non-oil vehicles. It would just be too advanced for the mind set of consumers. Consumers need to be eased into transitions.
But the shift is happening and if you look closely you can see it. The introduction of hybrid cars is not a shift, don't be blinded by that. News like this the start of major changes Abu Dahbi
Oil is not running out any time soon and hybrid cars are not going to take over the market share either. But don't think that multi-billion dollar oil companies and manufactures don't have a clue what is going on. They know exactly what they are doing and when they want to do it, and don't think you are going to see anything drastic until the oil supply starts getting low. When that day comes on a Friday, guess what will happen on Monday....
An all new way to get your family around without oil!!
Have a great week!
Matthew George
You may or may not fit somewhere in between those two definitions. I myself have my own opinion. The reason why we don't see very many eco-friendly cars on the road is this (for these arguments I am going to be referring to hybrid vehicles because electric cars are not practical for everyday use since they can't travel very far and hydrogen cars have a lack of infrastructure to fill them):
1) They actually are not that eco-friendly (if you don't believe me, consider that a Toyota Prius, throughout its manufacturing process, will contribute as many green house gases as the making and fuel consumption that a typical oil burning car will. And you don't even want to ask what happens to those giant batteries).
2) The MPG of a hybrid is not the end of having to fill up at the pump. If you are driving only on the highway, you are better off driving a V-6 with 350 horse power, and if you are driving in the city you are better to be driving a clean diesel powered car.
I think that most consumers after they do their research see these same points that I do.
Here is where we seem to be short-sighted though. I am fairly confident in saying that the eco-friendly cars we see on the road today are nothing more than a trend and a quick cash grab for manufacturers. I don't think it is difficult to conclude that the large vehicle manufacturers have in their locked up rooms right now a vehicle that does not need oil to run, can be powered for very long distances and causes no harm to the environment.
Don't believe me? In 1969 we put a man on the moon, in 1945 we figured out how to take a simple atom, split it in two and consequently have the ability to destroy the world. It is tough for me to believe that the combustible engine, which is proven to be one of the least efficient engines, is still the best source of power for vehicles. Call me crazy!
Once you are comfortable with the fact that the sale of cars and oil is a business then you can start to think a little more clearly. For example, let’s look to technology. Five years ago you couldn't buy a camcorder that shot video in HD, now you can fairly easily. But, five years ago a company like Sony knew that they could make camcorders that shot in HD. This is why we have these labels in the tech market referred to as generations: the I-pod gen 1, the I-pod gen 2, the I-pod gen 3... and that will keep going. There is more than likely already an I-pod gen 10 in the works, but think of all the sales they will make off the gen 4, 5, 6, 7, 8 and 9.
I believe the same thing is being done with the shift from oil to another form of fuel for vehicles. It would make absolutely no sense for an oil company to shift from working with oil to another form of fuel overnight. There is too much oil left, and there are too many vehicles that use oil. It makes no sense for manufactures to start only making non-oil vehicles. It would just be too advanced for the mind set of consumers. Consumers need to be eased into transitions.
But the shift is happening and if you look closely you can see it. The introduction of hybrid cars is not a shift, don't be blinded by that. News like this the start of major changes Abu Dahbi
Oil is not running out any time soon and hybrid cars are not going to take over the market share either. But don't think that multi-billion dollar oil companies and manufactures don't have a clue what is going on. They know exactly what they are doing and when they want to do it, and don't think you are going to see anything drastic until the oil supply starts getting low. When that day comes on a Friday, guess what will happen on Monday....
An all new way to get your family around without oil!!
Have a great week!
Matthew George
Monday, July 6, 2009
Is The Death Of Public Media On The Horizon?
It has been a busy couple of weeks in the world, has it not? Let’s just recap what has happened, from deaths to sports.
Popular figures that died:
Farrah Fawcett, actress, cancer.
Micheal Jackson, pop star, cardiac arrest, not yet confirmed.
Billy Mays, TV pitchman, heart disease, not yet confirmed.
Steve McNair, NFL star, homicide, not yet confirmed.
Ed McMahon, TV host & announcer, health problems, old age.
NBA free agency opens:
Rasheed Wallace signs with the Boston Celtics.
Jason Kidd re-signs with the Dallas Mavericks.
Hedo Turkoglu verbally signs with Portland then backs out and signs with the Toronto Raptors.
Ron Artest signs with the Los Angels Lakers.
Trevor Ariza signs with the Huston Rockets.
Ben Gordon signs with the Detroit Pistons.
NHL free agency opens:
Marian Gaborik signs with the New York Rangers.
Jay Bouwmeester signs with the Calgary Flames.
Daniel and Henrik Sedin re-sign with the Vancouver Canucks.
Mike Cammalleri signs with the Montreal Canadiens.
Martin Havlat signs with the Minnesota Wild.
Mikhail Grabovski re-signs with the Toronto Maple Leafs.
Mike Komisarek signs with the Toronto Maples Leafs.
Rick Nash re-signs with the Columbus Blue Jackets.
Alexei Kovalev signs with the Ottawa Senators.
In World news:
North Korea launches test missiles.
Sarah Palin resigns as governor of Alaska.
14 year old girl only survivor of plane crash (where?).
Swine flu attacks young adults.
Air France flights crashes off the coast of Brazil.
Bernard Madoff is sentenced.
You have to agree that that is a tremendous amount of news, that is, information that is discussed for the purpose of allowing as many people as possible to view and/or hear it.
It is now common place that we have the ability to be informed about each one of these events without reading a paper, listening to the radio, watching the news, or even reading an online newspaper; even the crowned killer of printed news now has its own competition lurking.
I am referring to the social networking phenomenon that is sweeping our globe. It started viral with You Tube, My Space, etc., but these early launches where basically used to promote individual achievements, personal opinions and to keep friends up to date as to what is happening in one’s own life.
But we have seen an emergence of new media, and the innovation of the aforementioned sites, to create an almost instant relay of the information and news that used to be found only in newspapers and television broadcasts that could take from hours to days to reach you. Now, with these new media forms, you are able to hear about events seconds after they happen, directly from individuals that were eye witnesses to them.
For example, if you don't follow tennis you might not have known that the Wimbledon finals were played this past weekend. Armed only with my phone, I was able to follow both the women's and men's final, being kept up to date not only on the points and games won and lost, but also to the reactions of the players, how tired they looked, who had the mental edge, who was in the stands, how the umpire was doing, changes in the weather, even when they brought in new tennis balls. All of this information was provided to me instantly and free of charge by a reporter at the match.
Without needing to read the paper to find out who won the match, I could write my own column about not only who won, but give a detailed account on how the match was won. As a sports fan, though, I would like to actually see some of the action. No Problem. I have been provided a link where I can see the highlights from the match. I can also see video from the match before it is even finished!
This sequence of events was a common theme in regards to keeping track of all of the news headlines that have been seen over the last couple weeks. I have been able to rely on being updated on events happening world wide in every aspect of the news without having to read a paper, watch the TV, even visit a newspapers online edition.
I must comment, though, that in order to gain an in-depth knowledge of what has happened it is still necessary to read an article on the event, maybe even a couple, to get all the details, but I don't, for example, need to know the details of a contract that has just been signed with the Toronto Maple Leafs. In 10 words or less I know that "Beauchemin signs in Toronto for 3 years/ $11.4 million." Fantastic! Welcome to the team. On the other hand, information like "North Korea launches test missiles" might be something you want to read more about, but, of course, that is always easy to find from the traditional sources.
Is the death of public media on the horizon? I would answer that by saying that it will rather continue transforming and innovating the way it relays information. Newspapers are going to have to go online; I really can't see them surviving any other way. Maybe some big players can keep their hardcopy paper going as well, but they are still going to have to rely mainly on online communication. This innovation of immediate communication of news is not the enemy of traditional news (i.e. written articles). I believe that these new forms of instant relaying headlines are bridges to these articles. The headline piques our interest, allows us to be more efficient in where we direct our attention, and allows us to pick and choose which pieces of information we wish to receive and read.
We can now reach our news like index cards at the library. We know what we want to find, we know where to look for it, and we are told where to find it.
It is more efficient, more personal, and more informative. Imagine the world at your fingertips.... Actually, no need to imagine, it is already here.
Have a great week!
Matthew George
Popular figures that died:
Farrah Fawcett, actress, cancer.
Micheal Jackson, pop star, cardiac arrest, not yet confirmed.
Billy Mays, TV pitchman, heart disease, not yet confirmed.
Steve McNair, NFL star, homicide, not yet confirmed.
Ed McMahon, TV host & announcer, health problems, old age.
NBA free agency opens:
Rasheed Wallace signs with the Boston Celtics.
Jason Kidd re-signs with the Dallas Mavericks.
Hedo Turkoglu verbally signs with Portland then backs out and signs with the Toronto Raptors.
Ron Artest signs with the Los Angels Lakers.
Trevor Ariza signs with the Huston Rockets.
Ben Gordon signs with the Detroit Pistons.
NHL free agency opens:
Marian Gaborik signs with the New York Rangers.
Jay Bouwmeester signs with the Calgary Flames.
Daniel and Henrik Sedin re-sign with the Vancouver Canucks.
Mike Cammalleri signs with the Montreal Canadiens.
Martin Havlat signs with the Minnesota Wild.
Mikhail Grabovski re-signs with the Toronto Maple Leafs.
Mike Komisarek signs with the Toronto Maples Leafs.
Rick Nash re-signs with the Columbus Blue Jackets.
Alexei Kovalev signs with the Ottawa Senators.
In World news:
North Korea launches test missiles.
Sarah Palin resigns as governor of Alaska.
14 year old girl only survivor of plane crash (where?).
Swine flu attacks young adults.
Air France flights crashes off the coast of Brazil.
Bernard Madoff is sentenced.
You have to agree that that is a tremendous amount of news, that is, information that is discussed for the purpose of allowing as many people as possible to view and/or hear it.
It is now common place that we have the ability to be informed about each one of these events without reading a paper, listening to the radio, watching the news, or even reading an online newspaper; even the crowned killer of printed news now has its own competition lurking.
I am referring to the social networking phenomenon that is sweeping our globe. It started viral with You Tube, My Space, etc., but these early launches where basically used to promote individual achievements, personal opinions and to keep friends up to date as to what is happening in one’s own life.
But we have seen an emergence of new media, and the innovation of the aforementioned sites, to create an almost instant relay of the information and news that used to be found only in newspapers and television broadcasts that could take from hours to days to reach you. Now, with these new media forms, you are able to hear about events seconds after they happen, directly from individuals that were eye witnesses to them.
For example, if you don't follow tennis you might not have known that the Wimbledon finals were played this past weekend. Armed only with my phone, I was able to follow both the women's and men's final, being kept up to date not only on the points and games won and lost, but also to the reactions of the players, how tired they looked, who had the mental edge, who was in the stands, how the umpire was doing, changes in the weather, even when they brought in new tennis balls. All of this information was provided to me instantly and free of charge by a reporter at the match.
Without needing to read the paper to find out who won the match, I could write my own column about not only who won, but give a detailed account on how the match was won. As a sports fan, though, I would like to actually see some of the action. No Problem. I have been provided a link where I can see the highlights from the match. I can also see video from the match before it is even finished!
This sequence of events was a common theme in regards to keeping track of all of the news headlines that have been seen over the last couple weeks. I have been able to rely on being updated on events happening world wide in every aspect of the news without having to read a paper, watch the TV, even visit a newspapers online edition.
I must comment, though, that in order to gain an in-depth knowledge of what has happened it is still necessary to read an article on the event, maybe even a couple, to get all the details, but I don't, for example, need to know the details of a contract that has just been signed with the Toronto Maple Leafs. In 10 words or less I know that "Beauchemin signs in Toronto for 3 years/ $11.4 million." Fantastic! Welcome to the team. On the other hand, information like "North Korea launches test missiles" might be something you want to read more about, but, of course, that is always easy to find from the traditional sources.
Is the death of public media on the horizon? I would answer that by saying that it will rather continue transforming and innovating the way it relays information. Newspapers are going to have to go online; I really can't see them surviving any other way. Maybe some big players can keep their hardcopy paper going as well, but they are still going to have to rely mainly on online communication. This innovation of immediate communication of news is not the enemy of traditional news (i.e. written articles). I believe that these new forms of instant relaying headlines are bridges to these articles. The headline piques our interest, allows us to be more efficient in where we direct our attention, and allows us to pick and choose which pieces of information we wish to receive and read.
We can now reach our news like index cards at the library. We know what we want to find, we know where to look for it, and we are told where to find it.
It is more efficient, more personal, and more informative. Imagine the world at your fingertips.... Actually, no need to imagine, it is already here.
Have a great week!
Matthew George
Monday, June 29, 2009
An Exciting Generation
I read this article in the Globe & Mail last week for two reasons: 1) I love the Globe & Mail, and 2) I love reading about generations and their traits. This article deals with 2009 high school graduates. I found it a very interesting article, a great read so I suggest you take a look at it. Meet Generation Practical
From my own very limited study into the different generations, one thing that I have learned about this generation (namely, the tail end of Generation Y) is that it has some of the same attributes as its members’ grandparents (Traditionalists) and is not at all like its parents (Baby Boomers). Obviously the characteristics it shares with its traditionalist grandparents are updated for the simple reason that they have grown up in different worlds, but the foundation of our beliefs seem to be the same; family, friends and helping others is what are important. Careers and the "me-first" attitude more commonly portrayed by the baby Boomer generation is farther down the list of Generation Y’s values.
If you come across a Generation Practical in the next few days, give them a thumbs up and a pat on the back. They have a lot to do over the next 20 years.
Have a great week!
Matthew George
From my own very limited study into the different generations, one thing that I have learned about this generation (namely, the tail end of Generation Y) is that it has some of the same attributes as its members’ grandparents (Traditionalists) and is not at all like its parents (Baby Boomers). Obviously the characteristics it shares with its traditionalist grandparents are updated for the simple reason that they have grown up in different worlds, but the foundation of our beliefs seem to be the same; family, friends and helping others is what are important. Careers and the "me-first" attitude more commonly portrayed by the baby Boomer generation is farther down the list of Generation Y’s values.
If you come across a Generation Practical in the next few days, give them a thumbs up and a pat on the back. They have a lot to do over the next 20 years.
Have a great week!
Matthew George
Monday, June 22, 2009
It Depends On When You Wake Up
I woke up this morning at 7:30 and, as per usual, I poured a cup of coffee and went through my morning computer bookmark routine. Check the sports scores from the day before, set my fantasy league lineups for the day, enter the bottomless pit called Gmail and graze through the news to see if the world is still stumbling along.
A lot of my attention lately has been directed towards the business section of the Globe and Mail. Usually, Monday morning is a fairly uneventful morning, the market also takes a weekend and is still on its way to work like everyone else. So I had a fairly easy read with the headline "The Return of Optimism" posted @ 7:28am. A fairly common theme I have been hearing over the last couple weeks is about how the market has bottomed out and people are beginning to feel optimistic about the next quarter. How quickly we forget....
I checked back in over some lunch at around 12 to see if ESPN had put up their power rankings for the MLB yet, hoping to find out what they had to say about our Blue Jays this past week, and then I went back over to the Globe and Mail. And before you could get a round of golf in, the market had dropped 350 points and a new report had been posted, now headlined "New Global Forecast Shakes Markets". At this point I would like to draw your attention to an article I first brought up earlier on this blog in the post "Riding the Emotional Roller Coaster".
Monday June 22 2009 sums up the last 12 months of the markets; one moment you're flying in your private jet, then your wings fall off and you turn into a missile carrying 13 different bottles of scotch, but you end off landing on a giant cloud that stops you softly and seems to carry you away to where there's no harm in sight... that is until that cloud turns into a thunder storm.
What I have been thinking about the most is whether the markets are turning into a different monster. Is the last 30 years of averages going to change? Is the ratio of 3 years of bull markets and 9 months of bear markets going to be a thing of the past? I don't really know, and I would have to be insane to try and give a conclusive answer to that. But it seems that some people do think they know.
What I do know, as of Monday June 22, is that if I want good news I should wake up early and get back to bed before noon. But where's the fun in that?
Have a great week!
Matthew George
A lot of my attention lately has been directed towards the business section of the Globe and Mail. Usually, Monday morning is a fairly uneventful morning, the market also takes a weekend and is still on its way to work like everyone else. So I had a fairly easy read with the headline "The Return of Optimism" posted @ 7:28am. A fairly common theme I have been hearing over the last couple weeks is about how the market has bottomed out and people are beginning to feel optimistic about the next quarter. How quickly we forget....
I checked back in over some lunch at around 12 to see if ESPN had put up their power rankings for the MLB yet, hoping to find out what they had to say about our Blue Jays this past week, and then I went back over to the Globe and Mail. And before you could get a round of golf in, the market had dropped 350 points and a new report had been posted, now headlined "New Global Forecast Shakes Markets". At this point I would like to draw your attention to an article I first brought up earlier on this blog in the post "Riding the Emotional Roller Coaster".
Monday June 22 2009 sums up the last 12 months of the markets; one moment you're flying in your private jet, then your wings fall off and you turn into a missile carrying 13 different bottles of scotch, but you end off landing on a giant cloud that stops you softly and seems to carry you away to where there's no harm in sight... that is until that cloud turns into a thunder storm.
What I have been thinking about the most is whether the markets are turning into a different monster. Is the last 30 years of averages going to change? Is the ratio of 3 years of bull markets and 9 months of bear markets going to be a thing of the past? I don't really know, and I would have to be insane to try and give a conclusive answer to that. But it seems that some people do think they know.
What I do know, as of Monday June 22, is that if I want good news I should wake up early and get back to bed before noon. But where's the fun in that?
Have a great week!
Matthew George
Monday, June 15, 2009
Rule Of 72
Short, sweet and so important that you're going to want to read this again.
Question: What is the number one reason to invest more aggressively and have a properly managed portfolio?
Answer: The rule of 72.
The rule of 72 is defined as this: A rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to double. (Investopedia)
Are you only getting a 3% return on your money each year? If so, it will take you 24 years to double your money!
Can you get 8% on your money each year somewhere else? If so, it will only take you 9 years to double your money!
What does that really mean in time and dollars?
Let's say you're 25 years old and you have $25,000 to invest. If you are getting 3% a year on your portfolio, by the time you retire at 60 years of age you will have approx. $70,000.
If your portfolio with the same $25,000 starting point gets 8% a year, at age 60 you will have approx. $200,000.
Which do you want to have?
$70,000 or $200,000?
The choice is up to you, but I think I already know which one you want.
Achieving maximum benefit from your investments is dependent on doubling your money as much as you can in your investing lifetime. Talk to me to find out how many doubles you can get.
Have a great week!
Matthew George
Question: What is the number one reason to invest more aggressively and have a properly managed portfolio?
Answer: The rule of 72.
The rule of 72 is defined as this: A rule stating that in order to find the number of years required to double your money at a given interest rate, you divide the compound return into 72. The result is the approximate number of years that it will take for your investment to double. (Investopedia)
Are you only getting a 3% return on your money each year? If so, it will take you 24 years to double your money!
Can you get 8% on your money each year somewhere else? If so, it will only take you 9 years to double your money!
What does that really mean in time and dollars?
Let's say you're 25 years old and you have $25,000 to invest. If you are getting 3% a year on your portfolio, by the time you retire at 60 years of age you will have approx. $70,000.
If your portfolio with the same $25,000 starting point gets 8% a year, at age 60 you will have approx. $200,000.
Which do you want to have?
$70,000 or $200,000?
The choice is up to you, but I think I already know which one you want.
Achieving maximum benefit from your investments is dependent on doubling your money as much as you can in your investing lifetime. Talk to me to find out how many doubles you can get.
Have a great week!
Matthew George
Sunday, June 7, 2009
Best Doctors For Everyone
I decided to draw our attention to this report which was sent to me last week: 1 in 5 breast cancer tests wrong.
"Am I getting the right diagnosis from my doctor?" That is something I have certainly thought about when going to the doctor. I have all the respect in the world for doctors. My doctor is a very intelligent woman and she has been my family doctor since I was born. But I have always understood that it is not possible for her to be an expert in all medical fields, so quite often family doctors refer to specialists. As much as I would like to believe that what I am being told is correct, I have heard many examples along the same lines as that news report from Quebec; misdiagnoses are prevalent in the medical community. What's the answer to this problem then?
Well, I would like to address your attention to an organization that I feel is life-saving: Best Doctors . Their vision: "When you need to be absolutely sure, Best Doctors is there." Take a look at the website and read a little about them. It really is a fascinating organization. A quick explanation of what they do is this: when you get a diagnosis from a doctor you are able to send your file to the Best Doctors organization and they will review it. Then they have the ability to both change the diagnosis and treatment.
You may ask, "How do I know I am I getting credible advice?" Well, according to the Best Doctors website, the physicians in the Best Doctors database have been identified by their peers as being the ‘best’ in their specialty areas. They seek "doctors whose reputation for clinical excellence places them in the top 5% of their specialty."
If there is anything to get a second opinion on, is it not your health? I am a huge supporter of Best Doctors and I have made sure that I am a member so I can take advantage of this service in the future should it be necessary.
If you want to learn more about how you can become a member for no membership charge, please let me know. Being part of Best Doctors could save your life one day.
Have a great week!
Matthew George
"Am I getting the right diagnosis from my doctor?" That is something I have certainly thought about when going to the doctor. I have all the respect in the world for doctors. My doctor is a very intelligent woman and she has been my family doctor since I was born. But I have always understood that it is not possible for her to be an expert in all medical fields, so quite often family doctors refer to specialists. As much as I would like to believe that what I am being told is correct, I have heard many examples along the same lines as that news report from Quebec; misdiagnoses are prevalent in the medical community. What's the answer to this problem then?
Well, I would like to address your attention to an organization that I feel is life-saving: Best Doctors . Their vision: "When you need to be absolutely sure, Best Doctors is there." Take a look at the website and read a little about them. It really is a fascinating organization. A quick explanation of what they do is this: when you get a diagnosis from a doctor you are able to send your file to the Best Doctors organization and they will review it. Then they have the ability to both change the diagnosis and treatment.
You may ask, "How do I know I am I getting credible advice?" Well, according to the Best Doctors website, the physicians in the Best Doctors database have been identified by their peers as being the ‘best’ in their specialty areas. They seek "doctors whose reputation for clinical excellence places them in the top 5% of their specialty."
If there is anything to get a second opinion on, is it not your health? I am a huge supporter of Best Doctors and I have made sure that I am a member so I can take advantage of this service in the future should it be necessary.
If you want to learn more about how you can become a member for no membership charge, please let me know. Being part of Best Doctors could save your life one day.
Have a great week!
Matthew George
Sunday, May 31, 2009
Talent Fit For The Queen
For the last couple weeks I have been regularly watching a show on YouTube, the show Britain's Got Talent for a few reasons: I find it entertaining, it puts a smile on my face, it sometimes even chokes me up, and I also love British people :). I really am not one to watch these talent/reality shows ex. like American Idol, America's Got Talent, So You Think You Can Dance, etc. Usually, they are just not really my thing, but, for the reasons listed above, I love seeing what Britain's Got Talent has to offer. This year there were some fantastic acts. Singers, dancers, dance groups, poets, escape artists, you really couldn't guess what was going to come out next. What I wanted to do was share with you some of my favourites from the season. Not necessarily ones that did very well, but ones that in for whatever reason I thought were very talented, funny, or that might just makes you feel good. I will provide the links to the YouTube video of the act below.
Stavros Flatley
My favourite act of the entire show. Absolutely fantastic. You cannot watch this without smiling and laughing.
Hollie Steel
Awwww, is she supposed to be able to sing like that? Simply wonderful.
Shaun Smith
He had to be convinced by his rugby mates to go to the audition.
Eugene The Librarian
I don't know if this is real or not, but this guy is an absolute legend.
Aidan Davis
This boy can dance.
Flawless
That they were. A fantastic dance group.
And now my two favourites of the finals.
Diversity
The best dance group of the whole competition in my opinion. Talent wise they were the best overall act.
Stravros Flatley
In my heart I wanted these two to win so bad. They just make you laugh, smile, and feel good. This is the video of them in the finals.
The winner was ????, and they certainly did deserve to win. They are unbelievably creative, their name obviously fits their group, and they really really wanted to win. Congrats.
There were lots of great acts, groups and performances and of course I couldn't have them all here. Notable mentions are Callum Francis, Susan Boyle, Julian Smith, Shaheen Jafargholi, 2 Grand, Jamie Pugh and Faces of Disco.
Never say; "I don't have the talent, I don't have the passion, I don't have the desire." There is always something that each one of us excels at and loves doing, sometimes it just doesn't fall into your bowl of cheerios; you have to go out, take a chance and find it.
Never let anyone tell you that "maybe doing that wouldn't be a good idea. How do you know it will work out?" If we always knew what the next day would bring, waking up would be dreadful. Take the chance, follow your passion, and know what it feels like to find it difficult to fall asleep because you're so excited about what the next day might have in store.
Have a great week!
Matthew George
Stavros Flatley
My favourite act of the entire show. Absolutely fantastic. You cannot watch this without smiling and laughing.
Hollie Steel
Awwww, is she supposed to be able to sing like that? Simply wonderful.
Shaun Smith
He had to be convinced by his rugby mates to go to the audition.
Eugene The Librarian
I don't know if this is real or not, but this guy is an absolute legend.
Aidan Davis
This boy can dance.
Flawless
That they were. A fantastic dance group.
And now my two favourites of the finals.
Diversity
The best dance group of the whole competition in my opinion. Talent wise they were the best overall act.
Stravros Flatley
In my heart I wanted these two to win so bad. They just make you laugh, smile, and feel good. This is the video of them in the finals.
The winner was ????, and they certainly did deserve to win. They are unbelievably creative, their name obviously fits their group, and they really really wanted to win. Congrats.
There were lots of great acts, groups and performances and of course I couldn't have them all here. Notable mentions are Callum Francis, Susan Boyle, Julian Smith, Shaheen Jafargholi, 2 Grand, Jamie Pugh and Faces of Disco.
Never say; "I don't have the talent, I don't have the passion, I don't have the desire." There is always something that each one of us excels at and loves doing, sometimes it just doesn't fall into your bowl of cheerios; you have to go out, take a chance and find it.
Never let anyone tell you that "maybe doing that wouldn't be a good idea. How do you know it will work out?" If we always knew what the next day would bring, waking up would be dreadful. Take the chance, follow your passion, and know what it feels like to find it difficult to fall asleep because you're so excited about what the next day might have in store.
Have a great week!
Matthew George
Monday, May 25, 2009
Don't Call Me Webster
I thought this week I would do something unbelievably exciting and entertaining. It will make you stand up and cheer... or maybe that is just how I would feel about it :).
I have written a post that provides a small list of definitions that I think may be informative to those reading it. Definitions of terms you have likely heard before and would perhaps like to know what they really mean. So enough of the small talk, lets get to the excitement!
Definitions taken from "Canadian Investment Funds", Inventive Financial Sector Education 2007
Mutual Funds: Provide the investor of moderate means with the same advantages as the large capitalist, in diminishing the risk of investing by spreading the investment over a number of different stocks. Investors benefit from the services of trained investment professionals and even with just a small amount of savings can spread their investment over many different securities.
T-Bill: Short-term money market investments issued by the federal and provincial governments. They can easily be bought and sold at any time, and are guaranteed by the federal government. The minimum investment is usually $5,000. T-bills are subject to inflation risk and hold comparative returns to GICs.
Income Funds: Funds that provide a regular stream of income to the investor.
Growth Funds: Funds that provide long-term growth. These funds are riskier funds since they consist of equity-based investments.
Balanced Funds: A combination of income and growth. Considered moderate risk since there is a level of stability along with potential growth.
GDP: Gross Domestic Product is a measure of the total market value of all the final goods and services produced in an economy in a year. That means goods and services sold to their final users. It is measured in dollars.
Inflation: The rise in the general level of prices in an economy over a period of time.
Segregated Funds: The life insurance industry's equivalent to mutual funds. These funds are only available through life insurers. They differ from mutual funds in the that they can guarantee 75% to 100% of the capital invested after a period of time. They have the potential to provide protection from creditors. Provide 100% return on capital if investor dies, even if the fund has had a significant loss in value.
Tax Deductions: A tax deduction reduces the amount of income on which you pay taxes. It is deducted from your total income before the federal and provincial tax rates are applied. A common deduction is RRSP contributions.
Marginal Tax Rate: This is the rate of tax you pay on the last dollar earned. It is the highest rate at which earnings are taxed. In Ontario the highest marginal tax rate for 2009 is 46.41% on any earned income over $126,264. That rate is only applied to money at or above that, not below. If somebody tells you that they paid 46% on their income this year in taxes, that is incorrect.
CPP: Canadian Pension Plan is payable to all eligible Canadians except those who worked in Quebec. It is designed to replace about 25% of your pre-retirement earnings. How much you will receive will depend on when you start taking your CPP benefit.
This was just a small portion of some of the terms people ask me about daily. There are many, many more but I will limit myself to those for this post because it is a scientific fact that too much excitement expressed by an individual can actually cause birds to fly into sliding glass doors. Amazing I know.
If you have any other questions, or want further explanation, you know where I am! :).
Have a great week!
Matthew George
I have written a post that provides a small list of definitions that I think may be informative to those reading it. Definitions of terms you have likely heard before and would perhaps like to know what they really mean. So enough of the small talk, lets get to the excitement!
Definitions taken from "Canadian Investment Funds", Inventive Financial Sector Education 2007
Mutual Funds: Provide the investor of moderate means with the same advantages as the large capitalist, in diminishing the risk of investing by spreading the investment over a number of different stocks. Investors benefit from the services of trained investment professionals and even with just a small amount of savings can spread their investment over many different securities.
T-Bill: Short-term money market investments issued by the federal and provincial governments. They can easily be bought and sold at any time, and are guaranteed by the federal government. The minimum investment is usually $5,000. T-bills are subject to inflation risk and hold comparative returns to GICs.
Income Funds: Funds that provide a regular stream of income to the investor.
Growth Funds: Funds that provide long-term growth. These funds are riskier funds since they consist of equity-based investments.
Balanced Funds: A combination of income and growth. Considered moderate risk since there is a level of stability along with potential growth.
GDP: Gross Domestic Product is a measure of the total market value of all the final goods and services produced in an economy in a year. That means goods and services sold to their final users. It is measured in dollars.
Inflation: The rise in the general level of prices in an economy over a period of time.
Segregated Funds: The life insurance industry's equivalent to mutual funds. These funds are only available through life insurers. They differ from mutual funds in the that they can guarantee 75% to 100% of the capital invested after a period of time. They have the potential to provide protection from creditors. Provide 100% return on capital if investor dies, even if the fund has had a significant loss in value.
Tax Deductions: A tax deduction reduces the amount of income on which you pay taxes. It is deducted from your total income before the federal and provincial tax rates are applied. A common deduction is RRSP contributions.
Marginal Tax Rate: This is the rate of tax you pay on the last dollar earned. It is the highest rate at which earnings are taxed. In Ontario the highest marginal tax rate for 2009 is 46.41% on any earned income over $126,264. That rate is only applied to money at or above that, not below. If somebody tells you that they paid 46% on their income this year in taxes, that is incorrect.
CPP: Canadian Pension Plan is payable to all eligible Canadians except those who worked in Quebec. It is designed to replace about 25% of your pre-retirement earnings. How much you will receive will depend on when you start taking your CPP benefit.
This was just a small portion of some of the terms people ask me about daily. There are many, many more but I will limit myself to those for this post because it is a scientific fact that too much excitement expressed by an individual can actually cause birds to fly into sliding glass doors. Amazing I know.
If you have any other questions, or want further explanation, you know where I am! :).
Have a great week!
Matthew George
Sunday, May 17, 2009
Long Weekend Madness
No post this week due to the frantic last few days. My parents had their 25th wedding anniversary this Friday and Saturday, which was a fantastic party. Thank you to all those that came and for dropping beats not bombs, :). Have been able to spend the last few days and next couple with my family from Alberta and Newfoundland which has been absolutely wonderful, and of course Jessica was here. I hope everybody has been having a wonderful long weekend and everybody has kept safe. Enjoy your short work week and make sure to return next Monday for something far better than this.
Have a great week!
Matthew George
Have a great week!
Matthew George
Sunday, May 10, 2009
The Experience of Music
"Music expresses that which cannot be put into words and that which cannot remain silent" -- Victor Hugo (French poet, playwright, novelist, etc...)
I have a real love for music, and I believe that most people would also agree that they also do as well. I have always played a musical instrument; - piano, percussion, trumpet, trombone, guitar - and I am master of none. :). But, I still find myself sitting down at the piano once a week, fooling around, playing some progressions, stringing some chords together for the simple reason that it is enjoyable.
But in listening to music, ah, that is where I find real enjoyment. What amazes me the most is how a tempo, tone, or crescendo can create such contrasting feelings inside of you. That's just the music, then there is that lyrical poetry that accompanies those sounds.
We can almost define moments in our life by the music that accompanies them. I will forever remember the songs that I listened to before every basketball game, as if I was going into battle. Those songs that were with you when you felt like you were at the bottom, and the songs that were with you when you reached the pinnacle. That song that means absolutely nothing to you, but still, makes your hair stand, your heart beat faster, or sends a single tear rolling down your cheek.
I wanted to share 10 songs that I personally feel each show us what music is. Songs that have lyrics of poets, songs that make your heart beat, songs that make you smile, and songs that make you say "wow." I by no means say that these are the 10 best songs, or you should like these songs. Everybody has there preference, these are just 10 songs I would like to share with you.
Enjoy, and turn those speakers up!
Look at the end of this blog for the link to get this soundtrack!
1. Heaven Knows I'm Miserable Now - The Smiths
The Smiths are lyrical geniuses, and this is one of my favourite songs by them. Enjoy the story that is told.
2. Con Te Partiro - Andrea Bocelli
He gets criticized, but every time I listening to this song I feel like I must stand on my chair and conduct the orchestra. Close your eyes and enjoy.
3. In The House, In A Heartbeat - John Murphy
Found in the 28 days/weeks later movies, this instrumental track is so good it actually scares me. I don't even need the zombies.
4. Hands In The Sky - Straylight Run
You may not have heard of them, and don't plan on hearing about them any time soon. The music is raw, and the singer is average at best, but put them together and for whatever reason this song will never leave my library.
5. Keeping the Blade - Coheed and Cambria
If you have not listened to a Coheed & Cambria album yet, go do it right now. What they do with music is astonishing.
6. Hurt - Nine Inch Nails
What to you say about Trent Reznor, he has his problems, but Mr. Reznor, thank you. Producer, singer, songwriter, instrumentalist. Listening is an honour.
7. Where Is My Mind - The Pixies
Ah, yes, The Pixies. When The Pixies come on, you just know everything is going to be fine. You could be falling from a plane to your death, but when this song comes on you will still smile. :)
8. Requiem For A Dream - Clint Mansell
I hope that neither you or myself ever have a moment in our lives where this song will be the theme music. But "wow" can't even begin to describe how this song gives me goose bumps.
9. Moonlight in C sharp minor - Beethoven
Beautiful. What else can I say.
10. Crazy Game Of Poker (Live) - O.A.R.
There is a reason why I ended with this song. Band Bio: Four high school graduates without any formal marketing or advertising plans went from playing fraternities to their third album Risen debuting at #11 on the Billboard Top Internet Sales chart solely from word of mouth. After receiving offers from various major labels, they signed with Lava Records because they promised not to change the band.
That is why we listen to music and that is why we play music.
This soundtrack can be found by following this link Must Have Songs If you have any issues with the link or how to download the soundtrack, please message me.
"Music is everybody's possession. It's only publishers who think that people own it."
-- John Lennon
Have a great week!
Matthew George
I have a real love for music, and I believe that most people would also agree that they also do as well. I have always played a musical instrument; - piano, percussion, trumpet, trombone, guitar - and I am master of none. :). But, I still find myself sitting down at the piano once a week, fooling around, playing some progressions, stringing some chords together for the simple reason that it is enjoyable.
But in listening to music, ah, that is where I find real enjoyment. What amazes me the most is how a tempo, tone, or crescendo can create such contrasting feelings inside of you. That's just the music, then there is that lyrical poetry that accompanies those sounds.
We can almost define moments in our life by the music that accompanies them. I will forever remember the songs that I listened to before every basketball game, as if I was going into battle. Those songs that were with you when you felt like you were at the bottom, and the songs that were with you when you reached the pinnacle. That song that means absolutely nothing to you, but still, makes your hair stand, your heart beat faster, or sends a single tear rolling down your cheek.
I wanted to share 10 songs that I personally feel each show us what music is. Songs that have lyrics of poets, songs that make your heart beat, songs that make you smile, and songs that make you say "wow." I by no means say that these are the 10 best songs, or you should like these songs. Everybody has there preference, these are just 10 songs I would like to share with you.
Enjoy, and turn those speakers up!
Look at the end of this blog for the link to get this soundtrack!
1. Heaven Knows I'm Miserable Now - The Smiths
The Smiths are lyrical geniuses, and this is one of my favourite songs by them. Enjoy the story that is told.
2. Con Te Partiro - Andrea Bocelli
He gets criticized, but every time I listening to this song I feel like I must stand on my chair and conduct the orchestra. Close your eyes and enjoy.
3. In The House, In A Heartbeat - John Murphy
Found in the 28 days/weeks later movies, this instrumental track is so good it actually scares me. I don't even need the zombies.
4. Hands In The Sky - Straylight Run
You may not have heard of them, and don't plan on hearing about them any time soon. The music is raw, and the singer is average at best, but put them together and for whatever reason this song will never leave my library.
5. Keeping the Blade - Coheed and Cambria
If you have not listened to a Coheed & Cambria album yet, go do it right now. What they do with music is astonishing.
6. Hurt - Nine Inch Nails
What to you say about Trent Reznor, he has his problems, but Mr. Reznor, thank you. Producer, singer, songwriter, instrumentalist. Listening is an honour.
7. Where Is My Mind - The Pixies
Ah, yes, The Pixies. When The Pixies come on, you just know everything is going to be fine. You could be falling from a plane to your death, but when this song comes on you will still smile. :)
8. Requiem For A Dream - Clint Mansell
I hope that neither you or myself ever have a moment in our lives where this song will be the theme music. But "wow" can't even begin to describe how this song gives me goose bumps.
9. Moonlight in C sharp minor - Beethoven
Beautiful. What else can I say.
10. Crazy Game Of Poker (Live) - O.A.R.
There is a reason why I ended with this song. Band Bio: Four high school graduates without any formal marketing or advertising plans went from playing fraternities to their third album Risen debuting at #11 on the Billboard Top Internet Sales chart solely from word of mouth. After receiving offers from various major labels, they signed with Lava Records because they promised not to change the band.
That is why we listen to music and that is why we play music.
This soundtrack can be found by following this link Must Have Songs If you have any issues with the link or how to download the soundtrack, please message me.
"Music is everybody's possession. It's only publishers who think that people own it."
-- John Lennon
Have a great week!
Matthew George
Monday, May 4, 2009
Four Levels to Diversification
Don't put all your eggs in one basket. Does that sound familiar? There is one word that seems to be found in every investor's vocabulary, and that is diversified. It seems to be the word that everybody feels comfortable using when there's a conversation going on about the market or investing: "Yes, well I am diversified." Instantly you feel like you should be sitting down for lunch with Warren Buffet discussing the opportunities that will arise in the next 3 quarters...
But how diversified are you? The common view on having a diversified portfolio is to have investments of different risk class and have your money weighted either aggressively or conservatively within that portfolio. For Example:
Your portfolio has 35% of its money invested in Canadian Energy (aggressive) and 65% of its money invested in Bonds (conservative). That is almost exactly how your portfolio should be arranged. :)
Here is the diversification blunder that most investors make, and it is something I see often. Here is an example of a portfolio that I may see:
John Smith
Fund Company RBC
Fund Manager RBC
15% RBC Canadian Energy Fund
30% RBC Balanced Fund
30% RBC GICs
10% RBC US Equity Fund
15% RBC Specialty Fund
Do you see the diversification blunder?
You may have said that the percentages don't look quite right, and that might be correct but without understanding the type of investor John Smith is we don't really know how aggressive he should be.
That is the biggest mistake both advisors and investors make: looking only at diversification within the percentages. You need to expand your diversification view by looking up a few more levels. This is what I mean.
To have a properly diversified portfolio you need to be diversified in four different areas:
1. Risk Weighting (aggressive/conservative)
2. Geographically (canadian/international)
3. Fund Managers
4. Fund Companies
In the example of John Smith he had 1) and a stab at 2). He had aggressive and conservative funds and he had also invested a little into a US fund. The biggest issue is that John's portfolio is managed by four fund managers, all with RBC and one fund company within RBC. What this means is that those four fund managers all have the same style of investing, the RBC way of investing. And all of John's money is with the RBC fund company.
I illustrate it this way: John may have his eggs all in different baskets but those baskets are all in the same car (RBC fund company), being driven by one driver (RBC fund managers).
So, then, how should John fully diversify? Well, simply, he needs to put his many baskets of eggs into different cars being driven by different drivers. He should have four to five different fund companies within his personal portfolio managed by different portfolio managers with distinct styles of investing. Why is that a good idea?
In simple terms, if you're only in the RBC car, you better be hoping it doesn't run out of gas, or, even worse, crash.
Beyond protecting yourself, by diversifying more then just the percentages, you're building a portfolio that you could proudly talk to Warren Buffet about.
Is your portfolio diversified?
Have a great week!
Matthew George
But how diversified are you? The common view on having a diversified portfolio is to have investments of different risk class and have your money weighted either aggressively or conservatively within that portfolio. For Example:
Your portfolio has 35% of its money invested in Canadian Energy (aggressive) and 65% of its money invested in Bonds (conservative). That is almost exactly how your portfolio should be arranged. :)
Here is the diversification blunder that most investors make, and it is something I see often. Here is an example of a portfolio that I may see:
John Smith
Fund Company RBC
Fund Manager RBC
15% RBC Canadian Energy Fund
30% RBC Balanced Fund
30% RBC GICs
10% RBC US Equity Fund
15% RBC Specialty Fund
Do you see the diversification blunder?
You may have said that the percentages don't look quite right, and that might be correct but without understanding the type of investor John Smith is we don't really know how aggressive he should be.
That is the biggest mistake both advisors and investors make: looking only at diversification within the percentages. You need to expand your diversification view by looking up a few more levels. This is what I mean.
To have a properly diversified portfolio you need to be diversified in four different areas:
1. Risk Weighting (aggressive/conservative)
2. Geographically (canadian/international)
3. Fund Managers
4. Fund Companies
In the example of John Smith he had 1) and a stab at 2). He had aggressive and conservative funds and he had also invested a little into a US fund. The biggest issue is that John's portfolio is managed by four fund managers, all with RBC and one fund company within RBC. What this means is that those four fund managers all have the same style of investing, the RBC way of investing. And all of John's money is with the RBC fund company.
I illustrate it this way: John may have his eggs all in different baskets but those baskets are all in the same car (RBC fund company), being driven by one driver (RBC fund managers).
So, then, how should John fully diversify? Well, simply, he needs to put his many baskets of eggs into different cars being driven by different drivers. He should have four to five different fund companies within his personal portfolio managed by different portfolio managers with distinct styles of investing. Why is that a good idea?
In simple terms, if you're only in the RBC car, you better be hoping it doesn't run out of gas, or, even worse, crash.
Beyond protecting yourself, by diversifying more then just the percentages, you're building a portfolio that you could proudly talk to Warren Buffet about.
Is your portfolio diversified?
Have a great week!
Matthew George
Sunday, April 26, 2009
20,000 Feet vs 2 Feet
One of the keys to problem solving is stepping back and analyzing the problem/situation at hand. There are basically two ways we look at problems, from 2ft and from 20,000ft.
A 2ft viewpoint seems to be the view of choice when we embark on any problem solving missions, yet it doesn't always give us the entire picture. Let's illustrate this:
Grab a piece of paper, write "the black ant went over to the yellow ladybug" in the middle of the page, reaching from the left side of the paper over to the right side of the paper.
Now grab another piece of paper roll it up just like a telescope. Sitting down place the piece of paper on your table or desk and look through your telescope. Keeping your telescope fixed on the middle of the page, can you see the whole sentence? Can you tell me where the black ant is going?
Now stand up and look through your telescope, fixed on the middle of your page.
Now you can tell me the whole story of the ant and the ladybug. And a captivating story it is.... :)
When making decisions do you find that people never stand up? Do you find yourself sitting to much?
Successful marketers/business-owners/entrepreneurs will tell you that it is impossible to make a well-informed decision without first standing up and taking a 20,000ft view. How could you? You can't even see all the information!
As investors we can find ourselves getting sucked into sitting too much. Therefore we look at things only from a 2ft vantage point. What is the outcome? Well every once in awhile you might guess that the ant is going to see the ladybug but the rest of the time you don't see that that ant is getting burned by a magnifying glass.
Stand up, it's good for you.
Have a great week!
Matthew George
A 2ft viewpoint seems to be the view of choice when we embark on any problem solving missions, yet it doesn't always give us the entire picture. Let's illustrate this:
Grab a piece of paper, write "the black ant went over to the yellow ladybug" in the middle of the page, reaching from the left side of the paper over to the right side of the paper.
Now grab another piece of paper roll it up just like a telescope. Sitting down place the piece of paper on your table or desk and look through your telescope. Keeping your telescope fixed on the middle of the page, can you see the whole sentence? Can you tell me where the black ant is going?
Now stand up and look through your telescope, fixed on the middle of your page.
Now you can tell me the whole story of the ant and the ladybug. And a captivating story it is.... :)
When making decisions do you find that people never stand up? Do you find yourself sitting to much?
Successful marketers/business-owners/entrepreneurs will tell you that it is impossible to make a well-informed decision without first standing up and taking a 20,000ft view. How could you? You can't even see all the information!
As investors we can find ourselves getting sucked into sitting too much. Therefore we look at things only from a 2ft vantage point. What is the outcome? Well every once in awhile you might guess that the ant is going to see the ladybug but the rest of the time you don't see that that ant is getting burned by a magnifying glass.
Stand up, it's good for you.
Have a great week!
Matthew George
Sunday, April 19, 2009
Q & A Time
The reason for starting this blog was to add value to those reading it and possibly clarify some questions you might have on certain topics. I love writing about topics that I find interesting and that I think you, the reader, do as well. But I would like to know what you're really looking for answers to.
I would love to hear from you and whats on your mind. It could be about anything: something you have heard on the news or read in the newspaper, or heard someone talking about at work, etc.
Every week I encourage any input you would like to make, but I would like to dedicate this week to allowing you to ask me something that you would like another view point on. Take the week to think about it, it can be anything from simple definitions to the most complicated topic. I will do my best to answer it.
You can leave a comment attached to this blog or send me an email at matthew.george.01@gmail.com or matthew.george@freedom55financial.com
Keep your ears and eyes open and remember asking a question is the easiest way to gain knowledge.
Have a great week!
Matthew George
I would love to hear from you and whats on your mind. It could be about anything: something you have heard on the news or read in the newspaper, or heard someone talking about at work, etc.
Every week I encourage any input you would like to make, but I would like to dedicate this week to allowing you to ask me something that you would like another view point on. Take the week to think about it, it can be anything from simple definitions to the most complicated topic. I will do my best to answer it.
You can leave a comment attached to this blog or send me an email at matthew.george.01@gmail.com or matthew.george@freedom55financial.com
Keep your ears and eyes open and remember asking a question is the easiest way to gain knowledge.
Have a great week!
Matthew George
Sunday, April 12, 2009
The Gift of Love
Short one this week, but powerful.
This is why I do what I do. I have the privilege of being a small part of such humbling experiences everyday. Please watch this video.
Your Gift
Life insurance can protect your family and leave a legacy for your children, but also provides a unique and significant source of personal monetary value to your life.
Ask me how.
Have a great week!
Matthew George
This is why I do what I do. I have the privilege of being a small part of such humbling experiences everyday. Please watch this video.
Your Gift
Life insurance can protect your family and leave a legacy for your children, but also provides a unique and significant source of personal monetary value to your life.
Ask me how.
Have a great week!
Matthew George
Sunday, April 5, 2009
Building a Bridge over the Generation Gap
I had indicated that this blog would have more in it then just topics dealing with explanations on how to find and understand financial success. So I will begin my first post along those lines.
Through my studies in marketing I was introduced to many interesting strategies, theories and principles. I studied many past events in corporations’ lives and created my own solutions to problems presented in in-depth case studies. One of the most intriguing thoughts that I came across in a couple of papers I read was one about how one can better set themselves up for success in the business world. It was based on looking at the daily relationship that the “generations” have with each other in the business world, both internally in a company and externally with customers or partners.
“Generations:” the distinctive gaps that we have in age in our society; you, no doubt, have heard of them. Traditionalists, Baby boomers, Gen-Xs and Gen-Ys are the 4 main generations in today’s workplace. The papers’ basic themes were that to fast track your success, you need to understand that the person you are sitting across from more than likely has a completely different outlook and perception on how to achieve the same form of success than you do. There are different ways of completing the same task and still come to the same outcome: Work styles, control styles, language, tools, processes, habits, etc. vary from person to person, from generation to generation.
Consider these traits where you are a Gen-Y and your boss or team member is a Baby Boomer.
You:
High value on helping others.
Consider getting along with a widely diverse group of people very important.
They:
Grew up in a time of great social change.
Believe in value of self-fulfillment and personal gratification.
An excellent quote from the book Geekes and Gezers: How Era, Values and Defining Moments Shape Leaders by Bennis and Thomas (2002) sums the generation gap up nicely:
"Our youngest leaders matured in the glow of computer screens; our oldest in the shadow of the Depression and World War II. With these two dichotomies of knowledge base, private and government officials need to focus on maintaining a vibrant and competitive edge; understand the organizational culture in the context of utilizing their generational competence; commit to strengthening the relationship between office teams; set up success measures and track progress, and play to the strengths of each generation and embrace generational differences and similarities to build generational competence.”
Would you not agree that if you understand the best way to frame your ideas to get a positive reaction from your team member or boss you’re more likely to find success. The difficulty is found in each individual’s desire to impart their own way of doing things.
Because if it doesn’t work out it always seems to be the other person’s doing. They didn’t understand. They’re out of date. They only care about themselves. It is impossible to work with them, we tell ourselves.
We have to get outside of what we know and understand. This means, for Gen-Ys realizing that this world didn’t start 25 years ago, and for a Gen-X ideas didn’t run dry in 1982 and new processes can still be created.
Each side can bring their positives to the relationship and create the ever so profitable symbiotic relationship by working in harmony. It is the equation to success new and old, experience and enthusiasm, creativity and strategy.
Next time you’re talking to another generation, be that one. You might be amazed at what happens.
But can you see past your own conceded generational traits?
Have a great week!
Matthew George
Through my studies in marketing I was introduced to many interesting strategies, theories and principles. I studied many past events in corporations’ lives and created my own solutions to problems presented in in-depth case studies. One of the most intriguing thoughts that I came across in a couple of papers I read was one about how one can better set themselves up for success in the business world. It was based on looking at the daily relationship that the “generations” have with each other in the business world, both internally in a company and externally with customers or partners.
“Generations:” the distinctive gaps that we have in age in our society; you, no doubt, have heard of them. Traditionalists, Baby boomers, Gen-Xs and Gen-Ys are the 4 main generations in today’s workplace. The papers’ basic themes were that to fast track your success, you need to understand that the person you are sitting across from more than likely has a completely different outlook and perception on how to achieve the same form of success than you do. There are different ways of completing the same task and still come to the same outcome: Work styles, control styles, language, tools, processes, habits, etc. vary from person to person, from generation to generation.
Consider these traits where you are a Gen-Y and your boss or team member is a Baby Boomer.
You:
High value on helping others.
Consider getting along with a widely diverse group of people very important.
They:
Grew up in a time of great social change.
Believe in value of self-fulfillment and personal gratification.
An excellent quote from the book Geekes and Gezers: How Era, Values and Defining Moments Shape Leaders by Bennis and Thomas (2002) sums the generation gap up nicely:
"Our youngest leaders matured in the glow of computer screens; our oldest in the shadow of the Depression and World War II. With these two dichotomies of knowledge base, private and government officials need to focus on maintaining a vibrant and competitive edge; understand the organizational culture in the context of utilizing their generational competence; commit to strengthening the relationship between office teams; set up success measures and track progress, and play to the strengths of each generation and embrace generational differences and similarities to build generational competence.”
Would you not agree that if you understand the best way to frame your ideas to get a positive reaction from your team member or boss you’re more likely to find success. The difficulty is found in each individual’s desire to impart their own way of doing things.
Because if it doesn’t work out it always seems to be the other person’s doing. They didn’t understand. They’re out of date. They only care about themselves. It is impossible to work with them, we tell ourselves.
We have to get outside of what we know and understand. This means, for Gen-Ys realizing that this world didn’t start 25 years ago, and for a Gen-X ideas didn’t run dry in 1982 and new processes can still be created.
Each side can bring their positives to the relationship and create the ever so profitable symbiotic relationship by working in harmony. It is the equation to success new and old, experience and enthusiasm, creativity and strategy.
Next time you’re talking to another generation, be that one. You might be amazed at what happens.
But can you see past your own conceded generational traits?
Have a great week!
Matthew George
Sunday, March 29, 2009
GICs: The Sloth of Your Portfolio
Today, if you shop around, you may be able to lock into a 5 year GIC for 2.5% to 3.0% with $15,000. Now, that no doubt sounds like a steal considering the majority of all other investments are down anywhere from 10% to 50%. So the ultimate question is: do I invest my money with GICs or do I invest my money elsewhere?
First, let me relate the marketed benefits of a GIC:
- Fixed term interest rate
- No maintenance
- No management
GICs provide the ability for an investor to take $15,000, place it into an account for 5 years and receive 2.5% on that money each year. At the end of those 5 years they can choose to take that money and spend it, invest it elsewhere or place it back into a new GIC.
Now some disadvantages of a GIC:
- Interest rate risk
- No Flexibility
- Inflation Risk
- Taxed heavily
I won't be able to explain each of these in this blog, if you would like to know more please feel free to ask. The one point I would like to deal with, though, is inflation risk because this leads into what is called "real return." Let's create a scenario to illustrate:
You have $15,000 and you place it into a GIC that provides you with 2.5% return each year. It is important to understand that this 2.5% is NOT your real return. Real return for an investment is Return - Inflation = Real Return (simplified equation). So in this scenario:
2.5% on $15,000 is $15,375.
Inflation averages around 2.5%
Real Return = 0% (2.5%-2.5%)
Tax Rate of 27% (average tax rate)
Your $15,375 at the end of your first year has a real return after tax of:
$10,849*(If invested in an RSP this tax would be deffered until withdrawn)
To simplify all of this, unless you have a GIC that has an interest rate of 6% a year and inflation stays at 2.5% you will not have any growth on your money in a GIC. Now it's important to realize that if you put $15,000 into an investment such as the Makenzie Universal Canadian Resource Fund, your 1 year return would be -56.4%. Would you believe me if I told you that that is still a better investment option than a GIC?
Remembering that investing to make money has to be a long term journey, let's let the numbers tell us which is better. We will compare the GIC to one of the most aggressive investments and to one that is very conservative.
Over 10 years Feb. 1999 to Feb. 2009 $15,000 Real Return (these numbers are real figures):
GIC at 3.5% = $21,353
Mac Unv at 13% (aggressive) = $52,014
GWL Real Estate at 6.6% (conservative) = $28,553
GICs are popular because they are heavily marketed. This is becuase financial companies make a tremendous amount of money on them and they do not need to be managed. The banks give you 3.0% on your money and they take that money and make 13.0% themselves in other investments.
Always remember that it is important to ask questions about where your money is being invested, be concerned with what your Real Return is and be aware that nothing is ever guaranteed.
The keys to investing and finding growth are: time, diversification and proper portfolio management.
Are you getting that with your investments?
Have a great week!
Matthew George
Sunday, March 22, 2009
Riding the Emotional Roller Coaster
Assuming you have picked up a newspaper in the last 7 months or somewhere heard a "solution to the problem" from financial experts around the world, you are enjoying the thrills and spills of our economic amusement park.
It's no mystery that we have been in a Bear Market this last 7 months; we won't deal with the question of why it happened. That has been widely talked about, and I have my own opinions as to where the real foundation of the problem was rooted but we can discuss that at a later date. What I would like to discuss is how should we react to these "corrections" in the market and is there positives to be found in such so-called "difficult times?".
How should we react?
The short answer is to take our emotions out of investing, and I would like to stress here both in "bull markets" and "bear markets". This can be very difficult to do in the "flat world" that we are living in with updates every second as to which stock is hot and which are not and advice provided daily, structured around multi-platformed strategies from Banks, Investment Companies, Investment Magazines and Newspapers. It is very easy for an individual to be caught up in all this madness and stop making decisions logically and start making them emotionally based on what we are being told by numerous teams of "professionals" in every imaginable form of communication.
Let's look at a couple examples. In June 2008, this headline was in the Financial Post: "Parked Cash Could Fuel Bull Market." Also in June, an Investment Executive (who will remain nameless) said "Canadian Equity Funds with Solid Performance." What followed was one of the largest drops in market history.
The absolute basics of investing as most people know are to Buy Low and Sell High. Yet if you were strictly to follow the news, the papers, the magazines you would be hard pressed to find one that says Sell when things are good and Buy when things are bad.
What do we read when things are bad?
January 6 2009 Financial Post "Stock Markets will Remain Dangerous."
January 15 2009 Globe and Mail "It's really gloomy out there."
The Canadian investor follows this investing pattern, Buy High and Sell Low (being sarcastic but speaking truth here). We follow headlines, we listen to news casts and we act IN THE MOMENT.
In 2001 we experienced something similar, the Tech Bubble and 9/11. Over a span of about a year and a half the TSX dropped approx 5,000, points to a bottom of 5,600 in the month of Sept 2002. As you can imagine the headlines dealing with the market were much the same as we are seeing right now. What happened over the next 2 years? Well the TSX reclaimed those 5,000 points. In fact, from Sept 2002 to Sept 2007 the TSX went from 5,600 to 14,600 points. Imagine if you had invested on Sept 2002.... Also imagine if you had sold in Sept 2002, what you missed out on...
I won't deal with numbers and returns because I personally am not an advocate of Market timing. I am though an advocate of Long Term Investing and proper portfolio management. The closer you are to needing your money, the less aggressive your portfolio should be; the longer you have in the market the more aggressive you should be.
If there is one thing you can take away from this let it be this quote from an extremely successful Investment Advisor:
“The success or failure of a long-range savings plan is not predicted on its rate of return, but the consistency of putting money away regularly and leaving it there.”
Bernard Baruch, financial advisor to the Rockefeller's and the Kennedy's in the 1920s and 1930s
I strongly agree that his statement still holds its truth today and should be the basis of every individual's financial plan. The headlines of the Times and Globe and Mail should not determine your personal decisions about your investments.
Do you also agree? I would love to hear what you think.
Have a great week!
Matthew George
It's no mystery that we have been in a Bear Market this last 7 months; we won't deal with the question of why it happened. That has been widely talked about, and I have my own opinions as to where the real foundation of the problem was rooted but we can discuss that at a later date. What I would like to discuss is how should we react to these "corrections" in the market and is there positives to be found in such so-called "difficult times?".
How should we react?
The short answer is to take our emotions out of investing, and I would like to stress here both in "bull markets" and "bear markets". This can be very difficult to do in the "flat world" that we are living in with updates every second as to which stock is hot and which are not and advice provided daily, structured around multi-platformed strategies from Banks, Investment Companies, Investment Magazines and Newspapers. It is very easy for an individual to be caught up in all this madness and stop making decisions logically and start making them emotionally based on what we are being told by numerous teams of "professionals" in every imaginable form of communication.
Let's look at a couple examples. In June 2008, this headline was in the Financial Post: "Parked Cash Could Fuel Bull Market." Also in June, an Investment Executive (who will remain nameless) said "Canadian Equity Funds with Solid Performance." What followed was one of the largest drops in market history.
The absolute basics of investing as most people know are to Buy Low and Sell High. Yet if you were strictly to follow the news, the papers, the magazines you would be hard pressed to find one that says Sell when things are good and Buy when things are bad.
What do we read when things are bad?
January 6 2009 Financial Post "Stock Markets will Remain Dangerous."
January 15 2009 Globe and Mail "It's really gloomy out there."
The Canadian investor follows this investing pattern, Buy High and Sell Low (being sarcastic but speaking truth here). We follow headlines, we listen to news casts and we act IN THE MOMENT.
In 2001 we experienced something similar, the Tech Bubble and 9/11. Over a span of about a year and a half the TSX dropped approx 5,000, points to a bottom of 5,600 in the month of Sept 2002. As you can imagine the headlines dealing with the market were much the same as we are seeing right now. What happened over the next 2 years? Well the TSX reclaimed those 5,000 points. In fact, from Sept 2002 to Sept 2007 the TSX went from 5,600 to 14,600 points. Imagine if you had invested on Sept 2002.... Also imagine if you had sold in Sept 2002, what you missed out on...
I won't deal with numbers and returns because I personally am not an advocate of Market timing. I am though an advocate of Long Term Investing and proper portfolio management. The closer you are to needing your money, the less aggressive your portfolio should be; the longer you have in the market the more aggressive you should be.
If there is one thing you can take away from this let it be this quote from an extremely successful Investment Advisor:
“The success or failure of a long-range savings plan is not predicted on its rate of return, but the consistency of putting money away regularly and leaving it there.”
Bernard Baruch, financial advisor to the Rockefeller's and the Kennedy's in the 1920s and 1930s
I strongly agree that his statement still holds its truth today and should be the basis of every individual's financial plan. The headlines of the Times and Globe and Mail should not determine your personal decisions about your investments.
Do you also agree? I would love to hear what you think.
Have a great week!
Matthew George
Saturday, March 21, 2009
Why Make a Blog?
This is an intro post describing the decision to start writing a blog.
As an individual who falls into the demographic of generation Y it is almost a necessity to one; read a blog, or two: write a blog. I have made the decision to do both.
I have personally always thought that writing a blog is a desperate effort to fill an emotion need to feel important and express your opinions to others, and overall feel important. Now, my opinion has not changed entirely, but I have come to a point where I feel that a blog can certainly hold some value.
Why write a blog? My desire to write a blog is not to write about the latest pop cultural event or rant on about issues that I feel "need to be heard by the world!" My desire was really rooted from conversations I have had with a couple of close friends. I come from a marketing background and am now a professional in the Financial Advice/Services business. My marketing mind was constantly nagging me to start some sort of "electronic communication medium" to further communicate with and involve my clients and also just because I love the idea. And what marketer doesn't love his own ideas...
My ideas never leave my head but they usually morph into something else, hence a very simple blog.
Finally, what is "Your Weekly Expansion?". It will be a theme/thought/topic created weekly that I hope will expand the knowledge of the individuals reading it through discussion. In turn I hope they will take any small thing learned and turn it into something larger in their own lives. It will be structured loosely around discussions ranging from finding personal financial success to trying to uncovering that ever-elusive inner happiness.
I hope you find enjoyment and value in our later discussions and of course input is always encouraged.
This blog will be updated Mondays on a weekly basis.
Matthew George
As an individual who falls into the demographic of generation Y it is almost a necessity to one; read a blog, or two: write a blog. I have made the decision to do both.
I have personally always thought that writing a blog is a desperate effort to fill an emotion need to feel important and express your opinions to others, and overall feel important. Now, my opinion has not changed entirely, but I have come to a point where I feel that a blog can certainly hold some value.
Why write a blog? My desire to write a blog is not to write about the latest pop cultural event or rant on about issues that I feel "need to be heard by the world!" My desire was really rooted from conversations I have had with a couple of close friends. I come from a marketing background and am now a professional in the Financial Advice/Services business. My marketing mind was constantly nagging me to start some sort of "electronic communication medium" to further communicate with and involve my clients and also just because I love the idea. And what marketer doesn't love his own ideas...
My ideas never leave my head but they usually morph into something else, hence a very simple blog.
Finally, what is "Your Weekly Expansion?". It will be a theme/thought/topic created weekly that I hope will expand the knowledge of the individuals reading it through discussion. In turn I hope they will take any small thing learned and turn it into something larger in their own lives. It will be structured loosely around discussions ranging from finding personal financial success to trying to uncovering that ever-elusive inner happiness.
I hope you find enjoyment and value in our later discussions and of course input is always encouraged.
This blog will be updated Mondays on a weekly basis.
Matthew George
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