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FINANCIAL GOALS & DREAMS

Short Term: 0 – 3 Years

Targeted ROR: 0 – 2%

Mid-Term: 3 – 7 Years

Targeted ROR: 3 – 6%

Long-Term: 7+ Years

Targeted ROR: 7 – 9%

Bucket 1

Bucket 2

Bucket 3

Emergency Fund

START: $1,000

GOAL: 3-6 month of expenses

Other Financial Goals?

Home Down Payment

New Vehicle

Other Financial Goals?

Retirement Income

Other Financial Goals?

Travel?

Kid’s Education?

For Training and Educational Purposes only.

For Training and Educational Purposes Only

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WHAT WE HAVE BEEN TAUGHT?

0% - 3%

LEND & INVEST

PMM

SAFE

The Global Economy

HIRE

For Training and Educational Purposes only.

For Training and Educational Purposes Only

• Now where are we going to get 9% from? (DWFA)

• Here we are, happy campers, with our bag of money. Ever since we’ve been kids we’ve been taught to take our money and save it in the financial institutions because it’s safe, secure and grows a bit, maybe 0-3%.

• Now where does this safety come from? (DWFA)

• Once we put our money in the bank, what do they do with it? (DWFA) They don’t just stick it in the vault collecting dust, do they?!

• They loan a portion of it out, and when they loan it out they spread it out to different people and companies knowing that all these people and company’s won’t default on their loans at one time.

• What they don’t loan out, they invest. They hire professional money managers who go out and put our money into 50 to 100 different companies who are all making money. And when they divide it up they spread it around to different countries and sectors of the economy. Some into oil & gas, some into marketing, some into entertainment, all over the world.

• Now, what are the odds of all these companies going broke at one time? (WFA)

• Has it ever happened? (WFA)

• Has it ever come close? (WFA)

• What’s the closest its come? (WFA)

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BLACK MONDAY

22%

Black Monday (October 19, 1987)

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For Training and Educational Purposes Only

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HOW DO INVESTMENT FUNDS WORK?

7-9%

INVESTMENT

PMM

$$$

FUND

7-9%

0% - 3%

LEND & INVEST

PMM

SAFE

The Global Economy

HIRE

For Training and Educational Purposes only.

For Training and Educational Purposes Only

So Black Monday is the worst drop we’ve had, but that wasn’t even close to all of the companies going broke at one-time. These professional money managers have averaged 9%. This is how the institutions make massive profit off of our money!

• Well, our message is this: Instead of giving the institution our money, lets take a different approach.

• Let’s go this way. Let’s take our money along with a “BUNCH” of other people across the country, pool it, create a fund. Now what we do is hire some professional money managers, just like the banks did, and put our money in the “exact” same places. We now make an agreement with these managers.

• They make our money grow, and they get a percentage. They don’t make it grow, they don’t make as much. Thus we have a mutual agreement, the money grows, and we both win. If the money doesn’t grow, we both lose. This mutual agreement is called an Investment Fund.

• Now, what’s the only way we can loose all our money in an Investment Fund? (DWFA) All these companies have to go broke at one time!

• What are the odds of that happening? (WFA)

• Has it ever happened? (WFA)

• Has it ever come close? (WFA)

• What’s the closest its come? (WFA)

• The same rules apply to both managers, don’t they! These managers have also averaged 9%! However, this way we get the profits the institutions were making from our money.

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For Training and Educational Purposes only.

Divide your interest rate into 72 to find the approximate number of years it takes for money to double.

This table serves as a demonstration of how the Rule of 72 concept works from a mathematical standpoint. It is not intended to represent an investment. The chart uses constant rates of return, unlike actual investments which will fluctuate in value. It does not include fees or taxes, which would lower performance. It is unlikely that an investment would grow 10% or greater on a consistent basis, given current market conditions.

$20,000

$40,000

$80,000

$160,000

$320,000

$640,000

$1,280,000

$2,560,000

$20,000

$40,000

$20,000

$40,000

$80,000

$160,000

The Rule of 72

$10,000

12%

Years

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For Training and Educational Purposes Only

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1934

2022

For Training and Educational Purposes only.

For Training and Educational Purposes Only

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1934

2022

For Training and Educational Purposes only.

ASSET ALLOCATION

Short Term: 0 – 3 Years

Targeted ROR: 0 – 2%

Mid-Term: 3 – 7 Years

Targeted ROR: 3 – 6%

Long-Term: 7+ Years

Targeted ROR: 7 – 9%

Bucket 1

Bucket 2

Bucket 3

GROWTH

PROTECTION

CASH or INCOME

For Training and Educational Purposes only.

For Training and Educational Purposes Only

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1934

2022

Growth Portfolio

$3,228,200 ^9.7%

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For Training and Educational Purposes Only

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1934

2022

Balanced Portfolio

$1,014,973 ^8.2%

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For Training and Educational Purposes Only

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1934

2022

Income Portfolio

$299,778 ^6.7%

For Training and Educational Purposes only.

For Training and Educational Purposes Only

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For Training and Educational Purposes only.

For Training and Educational Purposes Only

For Training and Educational Purposes only.

For Training and Educational Purposes Only

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TRANSPARENT INVESTMENT FEES

Fund Management Fees
Service Charge/Tip

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For Training and Educational Purposes Only

For Training and Educational Purposes only.

For Training and Educational Purposes Only

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MANAGEMENT FEES

Dealer Service Fee

Advice, Compliance, Suitability Reviews, Statements

Operating Expenses

Regulatory reports, tax reporting, client statements

Sales Tax

HST/GST are charged on all fees & services

Management Fees

Typical MER: ~2.5%

Investment Management Fee

Research, choose & monitor investment holdings

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For Training and Educational Purposes Only

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MANAGEMENT FEES

IF AN INVESTMENT FUND’S FEE IS 2.50% WITH AVERAGE ANNUAL ASSETS OF $10 MILLION.

IT’S EXPENSES ARE $250,000. ($10M X 2.50%)

INVEST

PROFESSIONAL

MONEY MANAGERS

INVESTMENT

$$$

FUND

2.5%

THAT MEANS, IF YOU HAVE $1,000 INVESTED IN THE FUND, YOUR SHARE IS $25.00 (2.5%).

11.5%

THE PMM IS PAID BASED ON THE TOTAL VALUE OF THE FUND

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For Training and Educational Purposes Only

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CORE VALUE: TRANSPARENCY

For Training and Educational Purposes only.

For Training and Educational Purposes Only

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VALUE OF PROFESSIONAL MANAGEMENT?

For Training and Educational Purposes only.

For Training and Educational Purposes Only

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SERVICE CHARGE / TIP

Total Family Investments	%
$1,000,000 and Above	1.0%
$750,000 – $999,999	1.5%
$500,000 – $749,999	2.0%
$250,000 – $499,999	2.5%
$100,000 – $249,999	3.5%
$25,000 – $99,999	4.0%
Less than $25,000	5.0%

Discounts:

Consolidation of all family assets
Loyalty discounts
Expected investments for next 12 months

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For Training and Educational Purposes Only

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IS FINANCIAL ADVICE WORTH THE PRICE?

For Training and Educational Purposes only.

For Training and Educational Purposes Only

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BUYING CHICKENS!

The easiest way to build wealth: Dollar Cost Averaging!

Let’s invest: $100 /mth

Month	Price Per Chicken	Purchased Chickens
1	$10 / Chicken	10 Chickens
2	$5 / Chicken	20 Chickens
3	$1 / Chicken	100 Chickens
4	$1 / Chicken	100 Chickens
5	$1 / Chicken	100 Chickens
6	$5 / Chicken	20 Chickens
Total:		350 Chickens

Sell:

350 Chickens

$5 Per Chicken

Total: $1750

Minus: -$600

Profit: $1150

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For Training and Educational Purposes Only

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OUR PHILOSOPHY

You shouldn’t have to be a millionaire to be treated like one!

WE DON’T JUST PROVIDE OUR SERVICE FOR WEALTHY PEOPLE.

EVERYONE NEEDS GOOD MONEY ADVICE REGARDLESS OF NET-WORTH.

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For Training and Educational Purposes Only

For Training and Educational Purposes only.

For Training and Educational Purposes Only

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INDUSTRY: HIDDEN FEES

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For Training and Educational Purposes Only

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TAX STRATEGY: RRSP OR TFSA?

vs.

By registering an investment, you are telling the government how to tax your money.

RRSP

Get tax reduction now
Defer Taxes until retirement

No tax reduction now
No Taxes in retirement

TFSA

For Training and Educational Purposes only.

For Training and Educational Purposes Only

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TAX STRATEGY: RRSP & TFSA

	RRSP ONLY	TFSA ONLY	RRSP & TFSA Combo
Total Invested	$246,000	$246,000	$246,000
Ending Balance	$2,693,314	$2,693,314	$3,514,774

Assumptions:

Income = $60,000/yr, 30% Tax bracket, $500/m invested @ 9% constant ROR for 40yrs

$6,000 RRSP Contribution

$1,830

Tax Savings

$1,830

Invest in TFSA

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For Training and Educational Purposes Only

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How much do I need invest?

Bank	Wealth Management	Minimum Investable Assets
RBC Bank	RBC Dominion Securities	$250,000 Investable Assets
TD Bank	TD Wealth	$100,000 Investable Assets
CIBC Bank	CIBC Personal Portfolio Service	$100,000 Investable Assets
Scotiabank	ScotiaMcleod	$500,000 Investable Assets
BMO Bank	BMO Financial Planner	$100,000 Investable Assets

What about the 86% of Canadian households with less than $250,000 to invest, who don’t meet minimum account thresholds?

For Training and Educational Purposes only.

For Training and Educational Purposes Only

For Training and Educational Purposes only.

For Training and Educational Purposes Only