Unconventional Wisdom

It is easy to outperform index investors.

Why?

Because they don't really try to get index returns, they try for reasonable returns with less risk.

This makes them use "performance drags" that typically reduce their returns by at least 1-3%/year.

In my latest podcast episode (which is under 3 minutes!), you'll learn exactly how to EASILY outperform index investors.

Enjoy!

Ed

How should you invest your money?

If you don't invest wisely, it will be hard to fund your future.

There are always new areas you can put your money into, but are they worthwhile long-term?

In my latest podcast episode, I look at all the possible areas to invest your money and fit them into 4 categories: gambling, speculating, saving, and investing.

Knowing the expected return & risk for each will help you decide what's the most reliable for you to be confident in your future.

I specifically talk about:

• The difference between gambling, speculating, saving & investing.
• What are meme stocks, NFTs, cryptocurrencies?
• Meme stocks, NFTs, cryptocurrencies, lotteries, futures, options, rental properties, bonds, GICs, dividend stocks, equities. Where do they all fit?
• How high do long-term returns need to be to be considered an investment?
• Odds of making money in the stock market with day trading and short-term investing.
• How the stock market can be gambling, speculating, saving or investing.
• How to be confident you are investing effectively.

Financial freedom is what we all want.

We talk to people about their finances all the time and most people just want to know that their money is there, and they can live their life the way they want, but very few Canadians actually get there. Why?

Most Canadians are not financially secure because of sub-optimal investments and focusing on the wrong risk.

In my latest podcast episode I'm going to show you how to outperform all these methods:

• How to easily outperform financial advisors, robo-advisors, and index investors.
• Why is good performance important for your life?
• What rate of return do you need to become financially independent?
• What are the 4 performance drags that reduce investment returns?
• What is the Asset Allocation Loss Ratio (AALR)?
• Why is it easy to outperform financial advisors?
• What is wrong with the investment industry definition of "risk"?
• Why is it easy to outperform robo-advisors?
• Why is it easy to outperform index investors?
• How can you learn to think properly about investing?
• What are the secrets to outperforming?

When you're planning for your future you need to have a sound investment strategy, that gives you confidence that you'll eventually have the retirement that you'll want.

The best way to understand this is with a hockey analogy.

Would it be more effective for me to go on the ice and stickhandle and shoot, or for me to pick an NHL superstar to play for me?

I learned that it is much more effective to study & hire the top investment managers, than to try to be one. The stock market is much more complex than people think it is.

Our process is hiring the world's best investors to invest for us. We call them "All Star Fund Managers". We think this gives our clients the best chance to achieve their goals.

In my latest podcast episode you'll learn:

• What I mean when I say the term: "All Star Fund Manager".
• Characteristics of an "All Star Fund Manager".
• Why you want to pick a fund manager who invests very differently from the index.
• Why it's important to look at quality when it comes to paying for fund managers.
• Why Ed Rempel invests with the same fund managers that we recommend for our clients.

Do you feel financially secure?

What would it take for you to build a huge nest egg to become financially secure?

Conventional wisdom says it's mostly about investing better. It suggests you should focus on getting a higher return or lower fees.

My experience, though, is surprisingly completely different. I have seen the full finances of thousands of people. The ones focused on investing usually had small portfolios. I call these people "performance maniacs". Typical portfolios I have seen are usually under $200,000.

By comparison, when I meet people much less interested in investing with mutual fund portfolios and working with advisors, they tend to have much larger portfolios of $300,000 to $1 million and often much larger.

A comprehensive study by CIRANO showed people with advisors had 4.2 times more financial assets - after adjusting for age, income, gender and almost 50 other factors.

In my latest podcast episode you'll learn:

• 2 things you must focus on to achieve financial security.
• 4 key positive traits of people who work with financial advisors.
• Why financial planning – not investing – is the key to financial security.
• Why having a retirement plan is a huge factor in both achieving financial security and having a large nest egg.
• 9 benefits of having a financial plan.

The RRSP Gross-up Strategy is a relatively simple concept that can help you contribute 40-70% more to your RRSP, without using any more of your cash.

Do this every year and you can retire with 40-70% higher income for life!

The last podcast was quite detailed, while this episode is a quick and concise overview of the strategy.

In my latest podcast episode you'll learn:

• The 3 tax refund options.
• What is the RRSP Gross-up Strategy?
• What you need to know before you start this strategy (facts & figures).
• 6 factors for your optimal RRSP contribution.
• The RRSP Gross-up Formula.
• The RRSP Catch-up Strategy.
• An RRSP Catch-up Strategy example.
• The RRSP Catch-up Strategy result.
• RRSP Catch-up + RRSP Gross-up.

Wouldn't it be great if you could save a lot more for your future without affecting your day-to-day cash flow?

One of the main things you learn from your retirement plan is that you need a lot more to retire comfortably than you may have thought.

But with all the day-to-day expenses, it can be difficult to find the money to contribute as much as you would like to your RRSP.

The RRSP gross-up strategy is a simple strategy that can be a game-changer for you. It can enable you to easily contribute 40-70% more to your RRSP – every year.

The strategy works if you already expect a tax refund. If you contribute monthly to your RRSP or have various tax deductions or credits, you probably expect a tax refund.

The RRSP Gross-up Strategy can be an even bigger life-changer if you have lots of RRSP room. Canadians have nearly $1 trillion available contribution room.

It is smart to gross-up every RRSP contribution you make.

In my latest podcast episode you'll learn:

• Why contribute to your RRSP?
• What is the optimal amount for you to contribute?
• How contributing 40-70% more can be life changing.
• What is the RRSP Gross-up Strategy?
• Real life examples.
• RRSP Gross-up formula.
• How to estimate your tax refund accurately.
• What is the RRSP Catch-up Strategy?
• How to combine the RRSP Gross-up + RRSP Catch-up Strategies.

Are you a parent?

If yes - you're probably paying a lot more tax.

Parents are often in higher tax brackets than non parents.

This means your planning must be diligently looked at, as it can affect your RRSPs, deductions, and more.

I've talked about this topic before on my blog, but this is the updated version.

In my latest podcast episode you'll learn:

• Why are effective tax rates higher for parents?
• Does the higher tax bracket for parents really start at only $17,000?
• How does the Canada Child Benefit (CCB) work?
• Why is the CCB clawback a game-changer for your tax planning?
• What are the benefits and how much is the clawback?
• What tax rates apply for parents?
• Why do parents benefit more from RRSP contributions?
• Why do parents benefit more from the Smith Manoeuvre?
• Why should parents avoid dividend-paying stocks?
• How does staying home with your kids affect your tax?

If you're investing in equities, you may be using various investment data software like Morningstar.

The problem?

Investment data often gets misused.

This is because you may be looking at short-term stats and ratings from only the last 1-5 years.

It takes a lot of effort looking at investment stats, but most people who do this incorrectly, don't get good returns.

In my latest podcast episode, you'll learn how to look at long-term data and how to use investment data effectively.

• Why do good investments have bad stats & ratings sometimes?
• Why do investors that use investment stats & ratings usually have lower returns?
• How do investment stats affect your behaviour?
• How the Dunning-Kruger effect happens when investing.
• How can you use investment data effectively?
• Common investing mistakes to avoid.
• Ed's unconventional wisdom on using investment stats effectively.
• How does a Financial Plan change how you use investment stats?
• Why it's important for your financial planner to study fund managers.
• How fund managers often beat the index.

5 Steps for You to Become Wealthy

One of the really cool things about my job is that I get to meet a lot of wealthy people. I get to see what kind of people they are and what their life is like.

What I find really rewarding though is to take people whose lives are struggling or just regular income earners and put them on a path to become wealthy.

In my latest podcast episode I'm going to answer the most common questions I get about creating wealth, and how YOU can become wealthy.

You'll learn:

• What is a wealthy person?
• How much do you need to be wealthy?
• Do you want to be rich or wealthy?
• Do most wealthy people inherit or make it themselves?
• Are wealthy people happy?
• Do wealthy people worry about money all the time?
• How do you define "wealthy"?
• How to create your personal definition of wealthy.
• 5 steps for you to become wealthy.