Hey there,
I started my banking career when I was 26 years old.
Day one, I was a commercial banker. And I had a front-row seat to how some of the most successful business owners handled their money.
Every so often, the bank would run a GIC promo—usually to lock in idle cash from chequing accounts. We’d get an email from head office saying, “This rate beats anything in the market!”
Like a good banker boy, I jumped into action.
I’d blast every client I knew who was sitting on cash and give them what I thought was good news. A 2% 5-year GIC? At the time, that was considered a win.
In my mind, this would be the easiest sale ever.
But almost no one took me up on it.
Even the senior bankers—guys with 20+ years in—struggled to get traction with their biggest clients.
At the time, I couldn’t understand why.
It wasn’t until years later, when I started studying how money really works, that it clicked:
They weren’t ignoring those rates because they didn’t care. They ignored them because they understood the system.
They understood inflation.
They understood what happens when governments print money.
And they knew that 2% guaranteed returns on paper didn’t stand a chance against 6%–8% real inflation over time.
Here’s what most people don’t realize:
The money supply in Canada (M2) has grown at an average of 8.77% per year since 1973.
That means if your investments are compounding at 5% or even 7%, you’re likely losing ground, not gaining.
Source: TradingEconomics. Chart values shown in CAD billions. Ie. $2,600 billion = $2.6 trillion
The Canadian money supply has quietly crossed $2.6 trillion—and most people have no idea.
To put that into perspective:
That’s more than double what it was just 15 years ago.
It means there are trillions of new dollars chasing the same goods, services, and assets.
And when more dollars chase the same amount of things, prices rise.
Not always overnight—but steadily, relentlessly.
For the average Canadian, this shows up as:
• A grocery bill that keeps creeping up
• A house that costs 2x what it did a decade ago
• A salary that doesn’t stretch like it used to
That’s the invisible cost of inflation—and it’s why playing defense doesn’t work anymore.
So how do you get ahead?
You use good debt to buy real assets that:
- Generate income
- Grow with inflation
- Let you leverage without overexposing
Here’s a basic example from today’s market, using real estate:
Triplex conversion in a good Ontario neighbourhood
Purchase price: $900,000
Down payment: $180,000 (20%)
Mortgage: $720,000 at 5.5%
Monthly rent (3 units): $5,500
Monthly expenses (mortgage, taxes, upkeep): $4,400
Cash flow: ~$1,100/month or $13,200/year
Annual return on capital:
• $13,200 in cash flow
• $15K–$20K in principal paydown
• Long-term appreciation potential
You’re looking at a 15%–20%+ total return—with an asset that keeps pace with inflation and pays you every month.
This is what smart real estate investors understand.
And it’s why those experienced business owners never got excited about my “best-in-market” GIC offers.
It’s not about chasing high-risk returns.
It’s about knowing how to play offense in a system designed to quietly reward asset owners—and quietly punish passive savers.
Until next time,
Vince
P.S. If you’re sitting on cash—or relying on “safe” returns that feel more comfortable than effective—it might be time to revisit your strategy. Let’s talk.
