Money Myths

Jean Reeves

Montreal drivers!!!

Money Myths

Just because a belief is widely held,

DOES NOT make it true

MYTH 1

Cashing The

Millions

Mr. Smith

MYTH 2

I’ll Start Saving

When…

The Power of

Compounding

0

20

30

40

50

60

$80k

1990–2009 2000–2009

10

70

$20K

$76K

$40K

$59K

All values are represented in CAD. Past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. © 2010 Morningstar. All Rights Reserved. 9/1/2010

MYTH 3

My golf buddy has a

« SCOOP »

1

2

3

MYTH 4

I ’m In It For The

Long-Term

$2,000

$336$508

$30

$79

0.10

1

10

100

1k

$10k

1950 1960 1970 1980 1990 2000

Canadian Market PerspectiveJan 1950–June 2010

•All values are represented in CAD. Past performance is no guarantee of future results. Hypothetical value of $1 invested at the beginning of 1950. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. © 2010 Morningstar. All Rights Reserved. 9/1/2010

Compound annual returnCompound annual return

13.4%• U.S. small stocks10.8• U.S. large stocks10.1• Canadian stocks7.5• Canadian bonds

5.8• Treasury bills3.8• Canadian inflation

7.0• 5-year GIC

$58

$10

Dow Jones INdex, 1964-82

MYTH 5

Best Deal0%

The of the Dodge Durango$36 000 with 0% financing

$31 000 if paid cash

UNSURE

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DISSATISFIED

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ALTERNATIVE

416 864 3640Jean Reeves – Financial Advisor

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416 864 3640Jean Reeves – Financial Advisor

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