Insurance Backwards Calculations

If you looked at a typical life insurance sale, you might also conclude that it’s kind of backwards. Think about this: if you take 1000 people from birth to death, 75% are still alive at age 65. So, it would be safe to say that statistically speaking, 3 out of 4 people will die after age 65. Yet the typical … Read More

Protect Your Income, Not Your Bank

Protect Your Income, Not your Bank
Protect your home and your family Most lending institutions offer some form of mortgage protection, but look carefully at what you are purchasing as you may be locking yourself into something that does more to protect your lender than yourself. Mortgage Life Insurance offered by most lending institutions Generally, mortgage life insurance from financial institutions is non-convertible term insurance with ... Read More

Financial Planning or Cashflow? Get more life from your money.

Financial Planning or Cashflow? Get more life from your money

Recently I’ve had a hard time justifying the time spent on conventional financial planning. The financial industry has always taught a very limiting “Needs Based” approach. It’s limiting because all it does is try to help someone figure out what they want in the future, which is very, very difficult if not impossible to do. We identify your goals in … Read More

Fixed and Variable Mortgage Rates

Fixed Mortgage Rate or Variable? Let's look at the history

I’ve been doing a little research comparing Fixed Mortgage Rates and Variable Mortgage rates over the past 25 years (1986 – 2010). Most mortgages I see are Fixed Rate Mortgages rather than Variable Rate Mortgages. However, if we compare the actual average interest rate over the past 25 years, you will see that Variable Rate Mortgages had a lower average … Read More

Risk Management or Rate of Return?

Risk Management vs Rate of Return

I always tell my clients to focus on risk management, not rate of return. Wealthy people focus on preservation of capital instead of focusing on┬áreturn on capital. So should you. Did you know that if you lose 30% on your investments, you need to earn almost 43% to get back to where you started. What are┬áthe chances of that happening … Read More

More Practical Wisdom from Allan Johnson

The best time to invest is when you have the money The most important factor in determining how soon you will make money or lose money is the price you pay when you invest A profit is only a profit when you take it The best way to invest is cautiously & regularly When prices are high, buy less, when … Read More