Imagine this–

• A successful 45 years old

• A couple of children about to go off to college

• The stay-at-home spouse is about to re-enter the work force even though the family doesn’t need the income

• The mortgage-paid off

• No auto loans, credit card debt, or home improvement loans

• Several years of living expenses set aside in cash value life insurance and the local credit union to deal with life’s surprisingly unsurprising surprises

• A legacy of wisdom and wealth for those you care most about

Imagine that…

If you think you have to win the lottery or marry rich to achieve this status, you are-as they say-drinking the Kool Aid. The Behemoths-big government, big investment houses, big banks, big stock insurance companies, big unions, big whatever-have you bamboozled.

Behemoths have Canadians convinced that cash and home equity-the two most basic elements in a successful family economy-are of no significant value and that Canadians should surrender their wealth and well being to the Behemoths for safekeeping while ignoring credit union membership, eschewing tax advantaged whole life insurance policies from mutual companies, and pretending that eliminating the mortgage is a really bad idea.

BUNK!  Baloney! Bull!

Look more closely Canada. You’ve been misled. When you buy anything from a Behemoth-investments, RRSP’s, mutual funds, or stocks and bonds-the Behemoths guaranteed themselves a profit and guarantee you only that they guarantee you nothing.

As Benjamin Franklin wisely stated over 250 years ago, when you commit to a mortgage or any other form of debt you “give to another power over your liberty.”

Twenty Years…

It doesn’t take a lifetime to lay a foundation and erect the Four Pillars for creating wealth and managing personal finances…

• Freedom from debt - including the mortgage

• Plenty of ready cash to deal with life’s surprises

• Secure income they don’t have to work for and can’t outlive

• A legacy of wisdom and wealth

Canadian families that use common sense and put their money where they can control it-whole life insurance policies and local savings institutions-can expect to create the financial condition described in above in twenty years of earning and saving.

It is unrealistic and unclear thinking for Canadian families to plan for retirement-a complete uncertainty-when they have only a few months of expenses saved, they have little or no discretionary income at the end of each pay period, are “up to your eyeballs in debt,” and have an unpaid mortgage.

PS - “But, I get a tax deduction when I put money aside for retirement.”

True, however the CRA is a Behemoth.  When you take post-retirement income they will collect the taxes on that money and the tax they’ll levy will most likely be a lot higher than the relief you gained from your deduction early in your career. If the CRA gives you a dollar today, they’ll take ten or more tomorrow.

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