Basically RSP's

So basically for example:
There are 2 types of

pension plans:

1.defined contribution:

a retirement plan where

the employer contributes

a certain amount or percentage of money each year.

2. defined benefit: a retirement plan where

employer contributes a set amount based on

a formula that draws on years of service, salary

and other factors.

Here we go: Instead of withdrawing and cashing out the plan

the most sensible thing to do is to transfer it to a RSP get it tax

deffered (that means no compound tax much like an RRSP

or any other registered fund) and ultimately transform it in to

an income fund that will provide a monthly cash-flow. E-mail

me if u want to know more on how to transfer a pension plan

severance into an RSP with AGF with no immediate taxation and

ultimately turn it into an income fund.

AGF Roadshow (London, Ontario, Canada)

The all to familiar CPP
(Canada pension plan)
not the most sensible
choice?



Qute as per brochure: "Many
Canadians are impacted by employers who decide
to reduce their workforce. At that point, the
employee will have decisions to make about the
payments offered to them by their employer.
There are two possible forms of payments
an employee can recieve upon early retirement.

Retiring allowance: is considered termination
pay or severance package. It is usually granted
when an employee's position has come to an end.
In many cases, early retirement plans are designed
to reduce the number of positions in a company and
a retiring allowance is a payment in respect to
those plans.

RSP eligible: A retiring allowance can be
transferred to an employee's RSP:

• without affecting the deduction limit
• with no immediate taxation

The maximum amount eligible to be transferred on a tax....

How am I going to pay that off?

How am I going to pay that off:

MBNA Mastercard: 50$ every month (I allready cut the card)
BestBuy card: 50$ every month (I allready cut the card)
Car maintenance fees: 480$ (one lump sum payment)
Car loan: 3,394$, 140$/month + 100$ in principal
(one lump sum if possible).
Cell phone bill to be payd: 100$ (one lump sum)

Additional monthly expenses: 40$+200$=240$ just for the car.

Haha: some of you might say how am I going to
have a net worth of 2,000,000$ in the next 2 years
from a -6,414$. Well keep reading!

Here's my spreadsheet.

My current situation:

MBNA Mastercard Debt: 1,428$ current ballance
BestBuy Card: 1,012$ current ballance
Car loan: 3,394$ current ballance
Total car payments due: 480$ (I spent around 3500$
additional for repairs since I bought my car oh 9 months ago)
Cell phone bill to be payd: 100$

Current consumer debt: 6414$
Total spendings since I bought my car: just little under 10,000$

Now how does school come into place: Well it's a chain reaction:
Schools pretty far so I need a car, I don't have any money so I need a
loan, school's pretty hard so I need a laptop therefore I need a loan,
My car breaks down so I need a loan cause I don't have 3500$ to fix it.
This does not include my OSAP loan for school which I have payd off
allready.

All I got from school is debt!

Ok today's post will deal mostly with my
current fiancial situation: You see I am...
was a student! With that identity comes
a s**t load of debt, here are some: car loan,
credit cards (2), cellphone bill, car maintenance
fees, student loan. Come to think about it that's
about all I got from college is loans. That was
my college experience and that's why I've left
this mediocre system behind. You see o how
often have I heard the all to familiar:
"Employees are looking for this, this and that"
"You better get your community service hours
young man or you'r never gonna become a police
officer" so basically you better study hard
so you can work hard for the rest of you'r life.
Hmm I don't think soo. Here is the turning point"
Instead of working hard I started working smart.

coming soon!

Coming soon!
How mortgages work! 2 essential questions when applying for
a loan! What banks don't want you to know! Why world economy
and not bank economy! Why invest! Beauty of compound interest!
and much more......

why invest first before you make more money?

Well.... here's a neat idea that most people
are afraid to put into action:

A lot of times people say: "well how can I
invest if I don't have any money" "All my
money goes to pay my bills" or "I'll invest
later when I have more money"....wrong....
U see I got my cell-phone cut off because I
didn't pay my balance last month (I bet
Roger's pissed) why I didn't? Well simply put:
I payd my self first: I took 200$ and started
my first investment portofolio. Of course I'll
pay for my bill but I'll be a bit late.
See most people pay everyone first: the government,
the creditors, bills etc. and oh so often they put
money away. Most times they don't have any left.
It's a bad habit if you ask me to give you'r
money away to people that you don't even know.
Questions, comments.....this is just a start
followed by self-discipline and proper money
management and it feels good baby!

Basically here's my plan

Step 1: Start investing money (to begin with 200$/month)
suggested:RRSP's at 10% rate of return (now since they
are registered that means they are tax-deffered) for 35 years.

Step 2: Start making more money: How? well now that's a secret.....
e-mail me if you want to find out more about generating passive
income. In a later post I will explain the difference between
passive and linear income.

Step 3: Diversify my investment portofolio every 10,000$

Step 4: To achieve a net worth of 2,000,000$ in the next 2 years.
By the time I'm 22.

Step 5: Continuously educating myself financially.
It's a learning game. You know what they say?
Applied knowledge is power.

Step 6: At 10,000,000$ net worth start a money management
firm (mutual fund).

Step 7: At age 30 to completly be financially independent by
achieving a net worth of 100,000,000$.

Step 8: To have money working for me!

Step 9: As I progress: to aquire essential skills to become
succesfull: such as sales skills, marketing skills, leadership
skills, management skills etc. It is a learned process.

Step 10: Work smart now so that I won't have to work hard
later.