How To Get Rich in Canada

There are many methods. Since I am no longer a Financial Advisor, I can point you in the right direction.

Remember, this is NOT financial advice. Only a License Legal Financial Advisor who did a Know Your Client (KYC) on you can give advice. Of which I am not.

Buy, Borrow, Die: How America’s Ultrawealthy Stay That Way

The "Invest-Borrow-Die" strategy is a common technique used by wealthy individuals to build wealth, manage debt, and achieve long-term financial goals. Here's a breakdown of each step:

1. **Invest**: Wealthy individuals often start by investing their money in various assets, such as:
   * Stocks: Equities can provide high returns over the long term.
   * Real estate: Investing in rental properties or real estate investment trusts (REITs) can generate passive income and appreciate in value.
   * Businesses: Investing in private companies or startups can provide a potential for high returns.
   * Index funds or ETFs: These investments track market indices, providing broad diversification and steady growth.
2. **Borrow**: The wealthy often use debt strategically to:
   * Leverage their wealth: By borrowing against their assets at favorable interest rates, they can amplify their returns and grow their wealth faster.
   * Take advantage of tax benefits: Mortgage interest and property taxes are tax-deductible, reducing the overall cost of borrowing.
   * Invest in income-generating assets: Borrowing to invest in dividend-paying stocks or real estate investment trusts (REITs) can provide a steady stream of income.
3. **Die**: The "die" part refers to the importance of having a solid estate plan and ensuring that your wealth is transferred efficiently upon your passing. This includes:
   * Wills: Ensuring that your assets are distributed according to your wishes.
   * Trusts: Setting up trusts to manage and distribute your assets in accordance with your estate plan.
   * Life insurance: Using life insurance to provide liquidity for heirs and cover any outstanding debts.

The key takeaways from the "Invest-Borrow-Die" strategy are:

1. Wealthy individuals often use debt strategically to amplify their returns or generate income.
2. They prioritize building wealth through investments, rather than relying solely on passive income.
3. A solid estate plan is crucial for ensuring that your wealth is transferred efficiently and effectively upon your passing.

It's essential to note that the "Invest-Borrow-Die" strategy is not a one-size-fits-all approach. It requires careful planning, risk management, and a deep understanding of personal financial goals and circumstances. Additionally, this strategy may not be suitable for everyone, especially those with high levels of debt or limited financial resources.

Some of the wealthiest Americans use a strategy called Buy, Borrow, Die to dramatically reduce their tax bills while their fortunes continue to grow. This video is part of ProPublica’s series, “The Secret IRS Files” which reveals, using a trove of never-before-seen records, how the wealthiest avoid income tax.

Video by Mauricio Rodríguez Pons and Nadia Sussman

June 8, 2021, 12:23 p.m. EDT

Here is the link: https://www.propublica.org/video/buy-borrow-die-how-americas-ultrawealthy-stay-that-way

This method works even better in Canada by using the Universal Life policy by investing up to the maximum tax accrual rules (MTAR) line. Ask your advisor about MTAR.

For more information on who is using this method other than Americans, study the Pandora Papers.

The Pandora Papers is a massive leak of financial documents that revealed widespread tax evasion, money laundering, and other financial wrongdoing by world leaders, billionaires, celebrities, and politicians.

**What are the Pandora Papers?**

In 2021, the International Consortium of Investigative Journalists (ICIJ) released a comprehensive investigation into a vast network of offshore accounts, shell companies, and trusts that had been set up to hide wealth and assets. The leak included over 30 million files from Mossack Fonseca, a Panamanian law firm that specialized in creating offshore structures for wealthy clients.

**What did the Pandora Papers reveal?**

The investigation uncovered:

1. **World leaders**: Current or former heads of state, including Queen Elizabeth II's husband Prince Philip and Ukraine's President Volodymyr Zelensky, were found to have used offshore accounts.
2. **Billionaires**: Wealthy individuals like the Saudi royal family, Turkish businessman Erdoğan Bayraktar, and Russian oligarchs like Gennady Timchenko had hidden assets and investments.
3. **Celebrities**: Famous personalities like Shakira and Rishi Sunak (Chancellor of the Exchequer) used offshore accounts for personal financial gains.
4. **Politicians**: Current or former politicians from around the world were found to have utilized offshore structures for personal enrichment.

**What are the implications?**

The Pandora Papers highlighted several key issues:

1. **Tax evasion**: The leak revealed widespread tax avoidance, where individuals and corporations hid income and assets to avoid paying taxes.
2. **Money laundering**: The documents showed how illegal funds were laundered through shell companies and trusts to disguise their origin.
3. **Corruption**: The leak exposed the corrupt use of offshore structures for personal gain, often at the expense of taxpayers and the general public.

**What did governments do in response?**

In the aftermath of the Pandora Papers release:

1. **Global efforts**: Governments worldwide launched investigations into the leaked documents, with some countries announcing new laws or regulations to combat tax evasion and money laundering.
2. **Increased transparency**: Many governments and financial institutions increased their efforts to promote transparency and accountability in financial transactions.

The Pandora Papers has sparked a global conversation about financial secrecy, corruption, and the need for greater transparency and accountability.

Method 6, However:

Building wealth legally in Canada, like in any country, requires careful planning, hard work, and financial discipline. There is no one-size-fits-all approach, as the best way to accumulate wealth can vary depending on individual circumstances, goals, and risk tolerance. However, some general strategies can help set you on the right path:

1. Education and Skill Development: Investing in education and skill development can increase your earning potential. Higher education, professional certifications, or gaining specialized skills can lead to better job opportunities and higher income.

2. Budgeting and Saving: Create a budget to track your income and expenses. Prioritize saving a portion of your income regularly. Building a financial safety net and having savings to invest is essential for long-term wealth-building.

3. Investing: Consider various investment options, such as stocks, bonds, ETFs, mutual funds, real estate, or starting a business. Diversifying your investments can help manage risk and increase potential returns.

4. Retirement Savings: Take advantage of tax-advantaged retirement savings accounts like the Registered Retirement Savings Plan (RRSP) or the Tax-Free Savings Account (TFSA). These accounts allow your investments to grow tax-free, helping you build wealth over time.

5. Pay off Debts: Reduce high-interest debts as quickly as possible to free up more money for savings and investments. Prioritize paying off credit card debts and other loans with high-interest rates.

6. Real Estate: Buying a property can be a viable long-term investment in Canada, as real estate tends to appreciate over time. However, it's essential to thoroughly research the market and assess your ability to manage the costs of home ownership. Or use the Co-Ownership method.

7. Entrepreneurship: Starting and growing a successful business can be a significant wealth-building opportunity. However, entrepreneurship comes with inherent risks, so careful planning and market research are crucial.

8. Seek Professional Advice: Consult with financial advisors or experts to tailor a wealth-building strategy that aligns with your goals and risk tolerance. They can offer personalized advice and help you navigate complex financial matters.

9. Avoid Get-Rich-Quick Schemes: Be cautious of any scheme that promises quick and easy wealth with little effort. Legitimate wealth-building takes time, effort, and consistent financial decisions.

10. Learn how to make interest tax-deductible in Canada and learn about leverage investing that is suitable for you.

11. Get Legal advice on how to set up a trust, holding company, and operating company to have all three legal entities work together to provide an income to you with no personal assets.

12. Continuously Educate Yourself: Stay informed about personal finance, investment trends, and economic developments. Being knowledgeable about financial matters can help you make informed decisions and adapt to changing circumstances.

Remember that building wealth is a gradual process, and there are no guarantees of success. It requires patience, discipline, and a long-term perspective. It's essential to set realistic goals, stick to your financial plan, and seek professional advice when needed.

Also, learn how to use the Income Tax Act of Canada. It will either keep you poor if you have a JOB (Just Over Broker) or help you become successful.

Method 5:

Follow the book, "Millionaire Next Door" If you don't like reading or it takes too long. Listen to the audio book version for free from your local public library.

Method 4:

Pay yourself first!

Put 10% of your pay cheque into a Tax-Free Savings Account (TFSA). And another 10% into a Retirement Savings Plan (RSP). The day you start your working career.

Learn to live off of 80% of your income.

You can use the TFSA for your down payment to purchase your first apartment, condo, townhouse, or small house to get started.

Then learn how to make your mortgage tax deductible in Canada.

Method 3:

Watch this video and learn:

https://youtu.be/vgmbq5JPTvY?si=7edzwG6CzlLiHsMe

Method 2:

Watch this video to understand why you might want to stop making additional principal payments on your mortgage. Learn how to take advantage of the ability to borrow against your home or real estate properties at low-interest rates to build wealth efficiently. This strategy works when the interest rate on your mortgage is lower than the rate of return on your investments. Recommend to watch video in full screen mode on a laptop or TV.