Mike Wells- Financial Planner
202-9910 39 Ave NW T6E 5H8 Edmonton, AB, Canada

Have you ever asked yourself, why do places like Walmart, Canadian Tire, Costco, heck even Tim Hortons try to get me to sign up for a Credit Card? simple it makes them a lot of money! Some of the latest stats is that for every dollar Canadian's earn, we are spending $1.70. In order to cover the extra $0.70, we use thing like Credit Cards, Lines of Credit, and Pay day loans to cover the deficit. With the help of The Rule of 72 it will aid us to illustrate why Credit ...is such big business. Lets say we have a Credit Card that has an interest rate of 18%. 72 goes into 18 four times. So if you are not making your payments your debt will double in as little as 4 years. and if your making the minimum payments by the time your done paying your debt off you have paid for that item a couple times over. Payday Loans are even more scarier, lets say we get a rate of 30% (I've seen them as high as 48%) Your debt can double potentially as quick as 2 and a half years. With rates like this you might as well be running up an escalator backwards. I'm not telling you to go cut up all your cards, and not to get payday loans, but will have a better understanding when you go to use that plastic card. If I have peaked your interest, and you would like to get some more information. DM me and we can chat. The Rule of 72 is a mathematical concept that approximates the number of years it will take to double the principal at a constant rate of return compounded over time. All figures are for illustrative purposes only and do not reflect the interest rate of any product. Additionally, they do not reflect the many types of risks, expenses or charges associated with any actual product or account. Past performance is not an indication of future performance. The interest rates on various products and accounts will fluctuate over time and, as a result, the actual time it will take any sum to double in value cannot be predicted with any certainty. It is unlikely that any one rate of return will be sustained over time. Additionally, there are no guarantees that any product or account can outpace inflation.

Over the next while, I am going to focus on Education with my page. I am going to go over concepts that will hopefully give you some tips on how money works. R...ule of 72. They Rule of 72 is how Compound Interest works. We use this concept to help illustrate as to how money can grow. By dividing 72 by the annual rate of return, investors obtain a rough estimate of how many years it will take for the initial investment to duplicate itself. Here is an example. 29 year old with $10,000.00 getting a 2% return on their investment. 2 goes into 72 thirty six times, So the person in this example would have to wait for 36 Years for their money to double. 29- $10,000.00 65- $20,000.00 Lets use the same 29 year old, and now lets say they are getting a 8% return. 8 goes into 72 nine times. With the money now doubling at a rate of every 9 years, the same 29 year old now has $160,000.00 at age 65 29- $10,000.00 38 $20,000.00 47 $40,000.00 56 $80,000.00 65 $160,000.00 That is a difference of $140,000.00 in their account at retirement. Is that a Little Difference? or Big difference? If you found this information helpful hit "Like" if you are looking to find out more information leave a comment Below and I will reach out to you. - Mike The Rule of 72 is a mathematical concept that approximates the number of years it will take to double the principal at a constant rate of return compounded over time. All figures are for illustrative purposes only and do not reflect the interest rate of any product. Additionally, they do not reflect the many types of risks, expenses or charges associated with any actual product or account. Past performance is not an indication of future performance. The interest rates on various products and accounts will fluctuate over time and, as a result, the actual time it will take any sum to double in value cannot be predicted with any certainty. It is unlikely that any one rate of return will be sustained over time. Additionally, there are no guarantees that any product or account can outpace inflation.

Check out my new website https://wfgconnects.ca/mwells and take the "How Money Works" Challenge

Come check out my new website @ https://wfgconnects.ca/mwells and take the "How Money Works" Challenge

What is Critical Insurance? and why is it so important? Its insurance in the event a life threatening illness such as Cancer or Heart attack were to occur. It... a one time Lump sum Tax free payout, Which allows a person to focus on getting better instead of rushing back to work. If you would like to get a free quote, or more importantly more information. Send me a DM and we can chat some more! See more

How many of us understand what a Tax Free Savings Account (TFSA) is? More important how can we use it in our Savings/Retirement plan? The TFSA is a program that was introduced to Canadians in 2009 as an addition avenue for to save money. The TFSA was set up to be Different then a Registered Retirement Savings Plan (RRSP) and if you put the 2 side by side there are differences. Lets focus on the TFSA. - You do not get a Tax Credit when you put your money into the account.... - Because there is no Tax Credit, that means you are not taxed on any of the growth in there. - There is a limit as to how much you can put into the account. 2009 to 2012 $5000/year 2013 to 2014 $5500/year 2015 $10,000 2016 to 2018 $5500/year Your contribution room is cumulative, that means if you were 18 years of age in 2009, you would have $57,000 worth of room to contribute to. Unlike an RRSP, when you take out money from the account, you do not lose the contribution room, it resets the next year. The TFSA is a great tool for us to put some extra money away for a sunny day. But as the key with everything is knowledge and understanding. For any questions do not hesitate to reach out.

What is Permanent Life Insurance? This type of Life Insurance does not expire. If we go to our example of Term is like Renting. Permanent is like Owning. The most Common Types of these Policies are Universal Life and Whole Life. If we use the Universal Life as an example. It appears to cost more up front, but along with paying for your Insurance you have a Savings Component with it. If we use an example I have a Premium of $100 and the cost of my insurance is $25 a month, $75 goes to the investment portion. There are some Benefits to having a policy like this. It can be used to put extra money away for retirement. The Key to this policy is Education and understanding of how it works. If you want to have some more information send me a quick Message and we will chat.

One of the most common questions I get is "What is the difference between Term and Permanent Life Insurance?" Lets take a quick look at Term Insurance. - Term is like "Renting" ie. if you pay rent for your apartment or house. when you leave do you get all your money back? - Depending on what company you use you can get Term Policies in anywhere from 10 to 100 years. - It is a cheaper option upfront. ... This is a great option for those who are looking to have insurance to cover debts like Mortgages, Loans, Etc. If you want more information message me for a free sit down. Have an awesome day!