The Cornerstones for your Future.

The sands in the hourglass continue without regard for your or I. Here are some examples of how the decisions you make today may affect your future.

 

Dick, a 40-year-old purchasing agent, squanders his monthly earnings and pays $850.00 for a small apartment. Using an inflation rate of increase of 5% per year, at the end of 25 years, he will have paid $486,816.00 to the landlord ( Janet ). He is now 65 and has no means of support and his rental payments are $2700.00 per month! His only means of income is a small check he gets from the government and he doesn't know how he will get through.

Jane, a 35-year-old hairdresser, has tucked away $100.00 a month into a savings account since age twenty. After 15 years, she has accumulated $25,000 with interest calculated at an average rate of 5% per year. She puts this down a $153,000 starter home. Her payments are $850.00 per month at 5% interest. The payments include taxes. When she is 65 she owns her home outright. It is then valued at $485,000 using an average annual appreciation of 8.5%. At 80, her home is valued at $970,000.00!

Janet, a 42-year-old receptionist, has an RRSP worth $25,000.00. Her credit is not the best. She buys a $140,000 home in Whitehorn using $20,000.00 from her RRSP. The home has a suite. She assumes the vendors mortgage. Her payments are 918.00 per month. She rents the suite out for $500.00 per month. Using the income from the suite, she pays the money back into her RRSP at the rate of $110.00 per month, and in 4 years uses the residual income of $4650.00 per year to buy another investment property.

Bob already owns his home. He puts $20,000 down on a $200,000 revenue property with mortgage payments of $918.00 per month. He rents the upstairs to Dick, and also the downstairs for a total of $1350.00 per month. He accelerates the payments with the extra and owns the home out-right at the end of seventeen years. Providing him with a comfortable retirement income.

Spencer is 25 year old and has inherited $60,000.00. He buys three investment properties requiring no mortgage qualification. After 17 years he owns them all out-right and has an income of $8400.00 per month. He quits his job and retires at age 42.

Start planning for your future today!