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SECURE & PREDICTABLE
on July 9, 2010
Greg Habstritt''s first book, The RRSP Secret, makes a significant contribution in the realm of personal finance in Canada.
This is not a novel, so I''ll give away the secret: the subject matter deals with investing in Arm''s Length Mortgages. "'Why do you think the biggest financial institutions rely on mortgage financing as their bread-and-butter business? It''s because it is so profitable!"' (70) Sophisticated investors have long used this strategy in their personal portfolios. Greg shows readers how almost anyone can.
Greg describes arm''s length mortgage investing as: stable and predictable; able to consistently produce double-digit returns with controllable risk; not requiring payment of commissions/fees to advisors/''experts''; virtually immune to what markets are doing; and 100% eligible for your RRSP, RESP, RRIF, TFSA, and LIRA. (69)
The Introduction suitably sets the stage and provides a personal connection with the author. Many Free Bonuses are available by registering yourself as an owner of the book on Greg''s [...] website (which also adds you to his growing database and impressive marketing machine).
Part 1, What the Financial Industry Doesn''t Want You To Know, is extraordinarily informative, readable, and intentionally disturbing.
Most readers will recognize themselves in a chapter devoted to investor bias. "'Any time you invest in something you don''t understand, you're gambling, not investing."' (7) Habstritt believes that 'a direct indicator of how successful you will be in life (not just financially) is based on your willingness to be accountable for your results.' (9)
In this section Habstritt reveals how the financial industry really works and how the government uses RRSPs to generate tax revenues. He uncovers the unfortunate truth about the limited availability of truly unbiased financial advice, and turns some well-worn ''truisms'' on their head. By way of example, here's what Warren Buffet has to say about diversification: "'Wide diversification is only required when investors do not understand what they are doing.'" (43)
In Part 2, The Best-Kept Investing Secret for Canadians, Habstritt tackles the task of describing mortgage investing step-by-step, including finding and evaluating opportunities, setting terms, and managing risk. This section, while packed with information, is somewhat less readable.
One of Habstritt''s challenges is that he's addressing two audiences: lenders and borrowers. Happily, the end result is a balanced presentation useful for any party willing and able to sort through the comprehensive detail provided.
If you''re wondering if this book is for you, simply start at the back and read the short section entitled Conclusions, where Greg explains why he wrote it and shares two third-party success stories. I recommend Greg Habstritt''s The RRSP Secret to anyone willing to learn and employ one simple strategy to strengthen their financial future.