Many of you might be thinking what the hell is GWF talking about. And in many aspects I hear you all in the current state we are in. But one silver lining in the cloud is we got an extra $500 loonies on top of the 5500 from the past few years for our TFSA accounts.
So how does that mean a raise when its $500 of your own hard earned money you might be wondering? Well think about it this way its another $500 you can invest if that investment is earning you 5% annually it translates to another $25/yr tax free you are earning.
Without a doubt this may seem like a postage stamp on a elephant’s arse when it comes to building wealth but all these little amounts do add up especially when you factor in compound growth. So if it is within your abilities to find that extra $500 I would strongly suggest you take advantage of this opportunity.
In leaving for this post I would like to leave you with this as food for thought a $100 invested with a 10% percent annual gain compounded ends up being this: $161.05 after 5 yrs., $259.37 after 10 yrs., $417.72 after 15 yrs., and so on you get the idea now multiply that by 5 if you can find another $400 to invest and it quickly changes. Likewise if wanting to be more conservative and having a 5% percent annual gain then half those gains above but still impressive isn’t it for making that money while you sleep if put in the right investment vehicle?
I will leave you all with that for this post and hope it helps spark a little interest in using one of the greatest weapons in our arsenals for building wealth and that is compound growth.
