In our cost-free Coaching Program for new & expecting parents, we'd like to help you - on a confidential one-to-one basis - enable your baby to become on track to accumulate:
the $10,000,000 in retirement savings they likely need (because of inflation), by the time they're age 65;
$227,000 for their university education, beginning when they're age 17; and
a $300,000 down payment for their first home, by the time they're age 25
all without your baby having to invest ANY money themselves.
Importantly, not only will this substantially increase your baby's standard of living during their retirement years, it will also significantly increase their standard of living during their working years - because they won't need to use any of their earnings to invest for their retirement.
Moreover, they won't be burdened by student debt.
So, for these 2 reasons, they'll have much more discretionary income to spend on other things, such as acquiring their first home.
And, of course they'll enjoy a wonderful head start in this regard, with the $300,000 down payment they should have, by age 25.
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Additionally, their increased level of discretionary income should allow them to pay off their mortgage years earlier, which will then further increase their standard of living.
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How much is all this going to cost? The answer is, not nearly as much as you might think. And, our Coaching Program is cost-free. So too are the ZERO-Fee Investment Funds we're launching for babies and their parents.
Compare these 2 scenarios:
If your child follows the conventional path and begins investing for retirement at age 24, to accumulate the $10 million in retirement savings they'll likely require by age 65, they'll need to invest $24,782 per year, for 42 years, which totals $1,040,844.
By comparison, (with our help) you can enable your baby to accumulate this same $10 million, by – as just one example – investing for them $13,382 per year, for just the first 3 years of your child's life.
This costs over $1,000,000 less.
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Why do we presently use a retirement savings target of $10 million for each baby? At a 9% return (which is less than what the S&P 500 averaged over the past 65 years) $10 million in retirement savings should produce retirement income averaging $900,000 per year.
At first glance, this may seem like a lot. However, inflation has averaged 3.69% over the past 65 years. And, if it continues at this level, $900,000 per year in retirement income will have purchasing power equivalent - in today's dollars - to $85,387, sixty-five years from now, when babies retire.
Working backwards from this $10 million retirement savings goal, we can calculate how much money a child needs to have in their retirement account, at each particular age, to be on-track to accumulate their $10 million by age 65 (again, using a 9% rate of return).
We refer to these amounts as their Finished Investing Amount Goals (or 'FIA Goals' for short).
As just 5 FIA Goal examples, to be on-track to accumulate their $10 million in retirement savings by age 65, a child needs to have in their retirement investment account:
$36,922 by their 1st birthday;
$43,867 by their 3rd birthday;
$56,810 by their 6th birthday;
$159,786 by their 18th birthday;
$245,851 by their 23rd birthday
These 5 FIA Goal examples underscore just how important the BIG Shift is. It's simply far too expensive to wait until one's working years to begin investing for retirement.
Yet, this is exactly what the current convention is. And, it explains why the government presently spends so much of our tax dollars to support retirees, who have been unable to accumulate enough retirement savings themselves during their working years, despite the tax advantages of RRSPs and Tax Free Savings Accounts (TFSAs).
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The fact that a person isn't even permitted to open a TFSA until they are 18 years old, illustrates just how entrenched the current invest-during-your-working-years
protocol is.
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Consider this: to be on track to accumulate the $10 million in retirement savings a baby will likely need by age 65, they should ALREADY have $159,785 in their retirement account by their 18th birthday!
To solve this problem, we need to think differently. As a society, we need to rally around our newborns and their parents.
More specifically, we need to make it possible for new-parents to come up with enough extra money - so they can afford to finish investing for their baby's retirement, when it costs a tiny fraction as much.
This requires several groundbreaking new strategies.
For starters, the government should automatically open 3 registered accounts for each baby, on the day the baby is born:
a registered retirement account:
a registered education account: and
a registered home ownership account:
And, new-parents should be given compelling tax incentives to contribute to these accounts.
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We are lobbying for this.
Next, the government should also give compelling tax incentives to employers for enabling new-parent employees to earn extra income (during the first 3 years of their baby's life) income which goes directly into their baby's 3 accounts (tax-free).
We're also lobbying for this.
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This will actually end up costing employers substantially LESS than what they are presently required to contribute to the Canada Pension Plan.
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It's simply far too expensive for EVERYONE (employees, employers & tax payers) to forego 18, or more, years of investment horizon.
Instead, as a society, we need to fully capitalize on each baby's 65-year investment horizon. It's in everyone's financial interest.
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Not only will this substantial increase the standard of living babies will enjoy throughout both their working years and retirement years, it will also be the key to paying off our national debt, balancing the federal budget, and lowering almost everyone's taxes - which will further increase the standard of living.
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widespread awareness among all stakeholders for the BIG Shift;
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free advisory services for new & expecting-parents;
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new-parent budgets (270 rule)
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extra income opportunities (part-time businesses & jobs); and
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zero-fee investment accounts
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zero-fee banking for new-parents
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low-fee credit cards for new-parents
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discounts for new & expecting parents (much more impactful for society than for seniors)
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claimable at-birth accounts for disadvantaged teens
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tax incentives for utilizing the services of a part-time new-parent business
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maternity-bonuses (not just maternity-leave)
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strict rules pertaining to the early withdrawal of funds from at-birth retirement accounts (only under exceptional circumstances)
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parents can't touch their baby's money
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revamped financial model for investment advisory services (earn fees based ONLY based upon cumulative FIA Goal over-achievement i.e. cumulative returns above 9%) goal congruence
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Let's have a quick look at Phase 1 of our Coaching Program
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We are beginning with our part-time BIG Shift organization - which will be comprised of a total of 398,510 new & expecting parents - who enrol in our cost-free Coaching Program specifically to serve in the organization.
The BIG Shift organiztion has 6 part-time roles:
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5 CEOs - all Toronto based - each oversees 5 Districts - 12 month OTEs: $981,808;
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25 District Presidents (3 in Canada & 22 in the US) 12-month OTEs: $506,514;
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272 Senior Vice Presidents (30 in Canada & 242 in the US) 12-month OTEs: $250,478;
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3,264 Area Vice Presidents (360 in Canada & 2,904 in the US) 12-month OTEs: $100,566;
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35,904 Team Leaders (3,960 in Canada & 31,944 in the US) 12-month OTEs: $57,505; and
359,040 Team Members (39,600 in Canada & 319,440 in the US) 12-month OTEs: $15,891
Whenever possible, each of these businesses will be designed to produce over $50,000 in part-time income for parent-operators, over a period of 12 months, within a particular, exclusive, geographically-defined market area.
Our goal is to enable each part-time parent-operator to earn enough extra income - so that they can afford to help their newborn FINISH investing for retirement - by their child's 1st birthday.
Accordingly, the goal is to enable each parent-operator to invest - for their son or daughter - a total of $36,922 (in after-tax dollars) ideally by their child's 1st birthday.
Parent-operators won't pay any upfront fees. Nor will they pay any advertising costs. Instead, we will fund their business's start up costs and pay for all their advertising.
Moreover, these part-time parent-businesses will benefit from several of our centralized teams, including: our Education & Training Team, Operational Best Practices Group, Category Marketing Team, Wealth & Fund Management Group, as well as our Finance & Accounting Team.
And, importantly, to help drive market share to these parent-businesses, we will provide lucrative BIG Shift Rewards to their customers, entirely at our expense.
And, we'll also allow the clients of 2 of the businesses we'll operate ourselves, to enjoy – at absolutely no cost to them - the products & services of parent-businesses.
Importantly, we will then pay each parent-business its full prices for the products & services they provide.
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Each parent-business operator will have a Mentor who knows all about their particular type of business – after operating it themselves over the previous 12-month period. So, when each parent-operator is done, they will serve as a Mentor to the new-parent who takes over their particular business.
And, Mentors will earn $5,000 for helping the new-parent. This will also help ensure that each parent-business has operational continuity.
Finally, many of these businesses will be virtual in order to allow certain parents to operate them remotely.
And, many will also be ideally suited for single-parents and stay-at-home-parents.
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Special Part-time Parent-Jobs:
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To help new-parents - who prefer not operate one of our part-time parent-bushiness, we also plan to create and source a substantial number of part-time parent-jobs (again including those ideally-suited for stay-at-home parents and remotely located parents).
As with Strategy 1, our goal will be to enable parents to earn enough extra income so they can afford to help their kids finish investing, as early as possible.
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Serving as a Team Leader on one of our Part-Time BIG Shift Teams is the first of these special Part-time Parent-Jobs.
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No Investment Fees or Management Fees of any kind:
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Over a newborn's 65-year investment horizon, even fees of just 40 basis points (which is 4/10ths of one percent) can consume over 22% of a child's entire portfolio.
For example, in the scenario where a parent helps their child finish investing for retirement by the child's 1st birthday, if the child is required to pay 40 basis points in fees each year, instead of accumulating 10 million dollars by age 65, they'll accumulate $2,225,724 LESS.
So, we're launching our own Zero-Fee S&P 500 Index Fund to ensure that BIG Shift newborns pay absolutely no fees whatsoever.
We'll also allow their parents to (pursuant to a Prospectus) invest in our Zero-Fee S&P 500 Index Fund, so that you too won't have to pay any fees whatsoever.
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Cost-Free BIG Shift Coaching Program for New-Parents:
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Each enrolled parent will have an Income Coach, who will help them achieve their child's Finish Investing Amount Goal.
And, we don't want parents to pay the Program's one-time $3,750 enrollment fee themselves. So, over the next 12 months, we're inviting people who wish to support the BIG Shift to become Members (and, we'll handsomely Reward them).
Then, once our BIG Shift infrastructure is established, we'll use a portion of the profit our own businesses produce to fund the enrollment of each and every new-parent (without requiring any additional Members), to ensure that the Coaching Program remains cost-free for parents.
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Big Shift Real Estate:
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When a parent completes a real estate transaction with the help of any of our BIG Shift real estate agents or BIG Shift mortgage agents, we will automatically invest an amount equal to a substantial portion of our agent's commission in their child's retirement account (and/or registered education savings plan).
As just one example, if a parent acquires a $600,000 home or condo with the help of one of our Big Shift Realtors, we will usually invest for their son or daughter $10,500, an amount equivalent to approximately 70% of the buyer-side commission.
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Big Shift Mortgages:
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When a parent completes a mortgage transaction with the help of any of our BIG Shift mortgage agents, we will automatically invest an amount equal to a substantial portion of our agent's commission in their child's retirement account (and/or registered education savings plan).
As just one example, if a parent arranges a 5-year $450,000 mortgage with the help of one of our Big Shift Mortgage Agents, we will typically invest for their son or daughter $750 into the child's ZERO-Fee S&P 500 Index Fund account.
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Teen Fast Start Agency
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We recognize that even with the strategies we've already outlined, not all new-parents will be able to invest enough for their kids to enable them to be finished investing for retirement during their formative years.
So, we also plan to launch our own Fast Start Agency to help high school & college-aged kids earn enough - themselves - to achieve their Finished Investing Amount Goals.
For example, with the help of our Fast Start Agency, a teen whose parents haven't invested ANY money for them, should still be able to finish investing for retirement by their 23rd birthday (and therefore be on track to accumulate their $10 million without investing any money during their working years) by earning enough so they can invest $22,293 per year during their high school and college years ($22,293 x 8 years equals a total $178,344).
This will save them $862,500 compared to if they begin investing at age 24.
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To substantially reduce the cost of helping certain disadvantaged children to finish investing for retirement during their formative years, we plan to make (and facilitate) a growing number of $33,874 at-Birth investments - which can optionally be claimed (in whole or in part) by certain low-income new-parents and/or their kids.
To illustrate, let's return to the Strategy 6 Fast Start Agency example of a teen whose parents haven't invested ANY money for them.
As already outlined, with the help of our Fast Start Agency, this teen should still be able to finish investing by their 23rd birthday, by earning enough so they can invest a total $178,344 during their high school and college years.
By comparison, if this teen had a $33,874 at-Birth Investment earmarked for them, they could claim the investment's entire present value (which, by their 23rd birthday, should be $245,851) by, with the help of our Fast Start Agency, paying our BIG Shift Fund a total of just $72,488 (which is $9,061 per year, for 8 years).
This is $105,856 less than what the teen would have to invest themselves during their high school & college years (and $968,356 less than they'd have to invest if they begin at age 24).
Why is there such a huge difference? The answer is, because we won't be trying to earn a profit on these claimable at-Birth Investments. Instead, we will merely try to keep-pace with inflation.
So, while the balance in their claimable at-Birth account should be compounding at 9% (in our ZERO-Fee S&P 500 Index Fund), their claim-amount will compound at just 4% (so that our capital merely keeps pace with inflation).
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Claimable at-Birth Investment Accounts
ZERO-Fee Registered Education Savings Plans
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As an additional benefit to enrolled parents and their kids, we also plan to launch our own ZERO-Fee RESP, to make it much easier for Canadians to make post-secondary education possible for their children.
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Unlike virtually all existing RESP facilitators, we won't charge parents ANY sales commissions or investment fees, whatsoever.
And, even more importantly, we'll use our BIG Shift Infrastructure to help parents earn sufficient extra income - so they can also afford to save for their kid's higher education.
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We'd be happy to answer any questions you have and invite you to email us at: Program@BIGShiftCanada.com
*Assuming a 9% average annual rate of return (net of fees), compounded annually until age 65