Rule of 72
Rule of 72 What It Is: A quick way to estimate how long it takes an investment to double. How…
Understanding the Fundamentals of Smart Financial Planning
Financial confidence starts with understanding a few core ideas. These concepts are used by financial planners,
investors, and families to make decisions about saving, borrowing, insurance, and investing. Master them and
you’ll make better decisions, avoid common mistakes, and move faster toward your goals.
If you’d like help applying any concept to your situation, book a free consultation
or
Email us at
connect@rightplacefinancial.com.
Rule of 72 What It Is: A quick way to estimate how long it takes an investment to double. How…
Debt Stacking (Prioritizing High-Cost Debt) What It Is: Paying off debts in order of interest rate (highest first) while making…
The High Cost of Waiting (Delay Penalty) What It Is: Small delays in saving/investing can dramatically reduce long-term returns due…
Pay Yourself First What It Is: Prioritize saving by automatically diverting a portion of income into savings/investments before spending. How…
Theory of Decreasing Responsibility What It Is: As debts are paid off and net worth rises, reliance on life insurance…
Power of Compound Interest What It Is: Earning interest on interest — the engine that makes long-term investing powerful. Tip:…
Compound vs Simple Interest Simple Interest: Calculated only on the initial principal. Compound Interest: Calculated on principal + accumulated interest.…
Diversification & Asset Allocation What It Is: Spreading investments across asset classes (stocks, bonds, real estate) and geographies to reduce…
Risk vs Return Concept: Higher returns usually require taking more risk. Practical Rule: Only take risks you can financially and…
Tax Efficiency & Account Choice (Canadian Focus) Key Accounts: RRSP, TFSA, FHSA, RESP — each has different tax rules and…
Tax Efficiency & Account Choice (Canadian Focus) Key Accounts: RRSP, TFSA, FHSA, RESP — each has different tax rules and…
Insurance Fundamentals (Short Primer) Insurance = Risk Transfer Life insurance protects dependents Health/Disability protects income and medical costs Travel/Super Visa/Visitor…
Tax Efficiency & Account Choice (Canadian Focus) Fixed vs variable rates, amortization, prepayment options Key Tip: Even small extra payments…
Saving for Goals: Short vs Long Term Short Term: Use low-risk accounts (savings, GICs). Long Term: Use equities and tax-efficient…
Available Calculators:
Use our calculators to apply these concepts to your situation. If you want help interpreting the results,
Steps:
Start with an emergency fund, clear high-interest debt, then automate small savings into a TFSA or FHSA
depending on goals.
At least once a year or when major life events happen (marriage, new child, career change).
Yes — many apply directly (cash flow, debt management, tax planning). We also offer corporate strategies
like key-person insurance and insured retirement plans.
Need help? If any concept here raises questions, or you want a tailored plan, we’re happy to help. Book a free
consultation or email connect@rightplacefinancial.com — we’ll respond within one business day.