Key Takeaways Inflation – the rate at which prices for goods and services increase over time – silently erodes the purchasing power of your investment returns. Understanding historical inflation helps you assess what your nominal returns (the plain percentage gain) actually mean in terms of increased buying power. Historical Inflation Rates (United States) The Consumer…
Key Takeaways 🔥 Even a 1.5% MER gap can erase tens of thousands over time🔥 Replace 60% of high incomes, 85% of low—adjust by bracket🔥 Contribute in high-earning years, withdraw in low-income retirement🔥 RRSP withdrawals lose contribution room—unlike TFSAs🔥 Government benefits cover just 25–33%—build the rest yourself Investment Growth Benchmarks Ever wondered how to predict…
Key Takeaways 🔥 Keep DTI under 36% to qualify for better loan terms and rates🔥 Boost your credit score—20 points can save thousands in interest🔥 Shorter loan terms cut total interest, even with higher payments🔥 Bigger down payments lower LTV and eliminate mortgage insurance🔥 Strong credit can offset high DTI or LTV in lender evaluations…
Key Takeaways Asset Class Geometric Mean Annual Return (1928-2024) Large Cap Stocks (S&P 500) 9.94% 10-Year U.S. Treasury Bonds 4.50% 3-Month U.S. Treasury Bills 3.31% Long-Term Average Inflation (U.S.) Ever notice how $20 buys less each year? That’s inflation at work—the steady increase in prices that gradually erodes your purchasing power. Inflation isn’t just an…
Key Takeaways 🔥 Exterior projects lead ROI—garage doors return 194%, kitchens 96%🔥 Depreciation outweighs fuel and insurance in car ownership costs🔥 Factor graduation risk—36% of students don’t complete degrees🔥 Pair air sealing with insulation for full energy savings impact🔥 Borrow based on total ownership cost, not just purchase price Home Renovation Project Benchmarks Ever wondered…
Key Takeaways 🔥 Compare rates to historical ranges—not just recent averages—for better context🔥 Watch fees—origination and closing costs can vary 5× between lenders🔥 Keep LTV under 80% to avoid costly PMI with no equity gain🔥 Real estate returns come more from rent than appreciation over time🔥 Longer loan terms lower payments but can double total…
Key Takeaways 🔥 Diversify with stocks and bonds—stocks offer 10–11% growth, bonds add stability🔥 Expect $165K+ in healthcare costs per person, with potential spikes🔥 Claim Social Security at 70 to boost lifetime benefits by up to 77%🔥 Use the 4% rule as a guide—adjust for markets and lifestyle🔥 Plan for a 30+ year retirement—half of…
Key Takeaways KPI Definition Key Insights Typical Benchmark Range Dividend Payout Ratio Percentage of earnings paid as dividends Shows earnings distribution vs. retention 30% – 55%: Balanced Dividend Growth Rate Annualized percentage growth of dividends Indicates management confidence Seek 5%+ CAGR over 10+ years Earnings Per Share Growth Annualized growth of company’s profit per share…
Key Takeaways Discount Structure Key Characteristics Strategic Implications Static Discounts Fixed percentage reduction Predictability and standardization Sliding Scale Discounts Diminishing discount percentage Flexibility in payment timing Dynamic Discounting Variable rates based on payment acceleration Tailored financial negotiations Tiered Discounts Multiple discount options Enhanced buyer-supplier flexibility But there’s a plot twist. The rising popularity of sliding…
Key Takeaways Cost of Capital: Foundational Context ↓ Understanding Components ↓ Cost of Equity (Ke) Cost of Debt (Kd) WACC ↓ Ke Details: • Return required by investors • Reflects ownership risk • Estimated using CAPM • Input in capital budgeting Kd Details: • Interest on debt • Tax shield adjustments • Lower risk than…