FREE Giveaway and Book Review – Cash Cows, Pigs and Jackpots
Right out of the gate, author David Trahair says Canadians are going about their financial future all wrong: “Our quest to build wealth and secure a comfortable retirement often ends up making us poor and others rich.” What is your reaction when you read that?
A few years ago, I would have questioned Trahair’s statement. Now, I’m with him all the way. In Cash Cows, Pigs and Jackpots, Chartered Accountant David Trahair tells us to run, fast, from traditional wisdom and get off our modern treadmill of excessive borrowing for the homes we live in, stop buying and investing in things that cost us more than we realize and taking too many chances on long-shots because they rarely, if ever, pay off. Thanks to David and his great team at Wiley, I’m giving you an opportunity to win a FREE copy of Cash Cows, Pigs and Jackpots, David Trahair’s latest book. Before I do that, here’s an overview of what you’ll read in David’s latest offering.
“From now on, before you spend any more money on anything, before you jump into an investment opportunity, before you sign a deal for a new car or a new house or condo, before you put another cent on your credit card, before you borrow another dime, stop for a moment and consider the cash flow implications of this thing.” If you do this, Trahair writes, you’ll have a good idea whether you’re making a financial commitment in a cash cow, a cash pig or gambling on a cash jackpot.
Want to know what your biggest cash cow is? Read chapter 2 and follow David’s advice once you find out.
In chapter 3, David suggests net worth while a viable metric is a poor measure of wealth. He also suggests (and maybe rightly so) many “wealthy” people are living a mirage.
“It seems to me that many people who became millionaires (at least on paper) got rich by borrowing to do it. It sounds easy: take a loan from a bank, invest in something and hope the thing you buy grows in faster value than the interest you have to pay on the debt. In other words, their wealth is debt-dependent.” Money is not needed for happiness only an enabler to do certain things writes Trahair.
Next, David writes about “the mutual fund fee monster” everyone should be wary about and how borrowing, while it can work for some people is far from a sure bet to secure financial independence.
Probably David’s most blunt perspective on debt is expressed in chapter 5 entitled The Dream of Home Ownership. While he says we often hear the phrase “the rich don’t rent”, for many people this is absolutely the right thing to do, especially when you factor in the closing costs, land transfer tax, GST/HST and then the ongoing costs of home ownership. David takes the reader into great detail (and math) about the opportunity costs of investing in a tax-free savings account (TFSA) or a Registered Retirement Savings Plan (RRSP) instead of purchasing a home. Trahair continues sharing his take on debt when writing about The Condominium Conundrum in chapter 6, making reference to an excellent resource for potential condo buyers, the Condominium Buyer’s Guide produced by the Canadian Mortgage and Housing Corporation (CMHC).
In chapter 7, David demystifies inflation providing definitions for the Consumer Price Index (CPI), deflation and stagflation, the latter a “two-headed beast” that could occur in Canada due to slow economic growth and rising prices.
Even with recent government rule changes to the Canada Pension Plan (CPP), Trahair weighs the pros and cons of taking CCP early, at age 60, how to apply for it and challenges some myths that the plan is underfunded. In Cash Cows, Pigs and Jackpots, there are also details about Old Age Security (OAS) and the Guaranteed Income Supplement (GIS), including eligibility criteria for each program and a breakdown for folks about annuities – information that would serve any investor nearing retirement well.
Cash Cows, Pigs and Jackpots is another solid publication from Trahair, national best-selling author of Enough Bull who reinforced what sophisticated investors have always known and what novice investors need to know now: cash flow is the key to financial freedom. David is passionate about helping you take control of your finances, which is clear when he writes: “give yourself a chance of contentment during your retirement years. If you are already retired, the best time to start taking control of your cash inflows and outflows was in the past. The second best time is today.”
Dedicated readers and new followers, because the month of November is Financial Literacy month in Canada, I want to do my part to contribute. I want you to win a FREE copy of David Trahair’s new book Cash Cows, Pigs and Jackpots. Enter below! The contest closes in about two weeks from today. Good luck everyone!
First time I have come across the notion of ‘net worth while a viable metric is a poor measure of wealth’ and would like to better understand what that is all about. Always like it when commonly accepted wisdom’s are challenged like in the case of home ownership. Would love to read the book!
As someone who is very close to retirement, and intends to purchase a “forever home” soon, this book could be immensely helpful to me. There is a lot of US-based analysis and advice out there, but finding something uniquely Canadian that addresses today’s fiscal climate can be a challenge. Hopefully a copy will come my way!
It sounds interesting. I would love to win a copy. Thanks.
Sounds like an interesting read! Would love to win it, but may add it to my reading list regardless.
Anything to help with our finances 🙂 sounds interesting.
Sounds like a great book, would love to read it!
Sounds like a fantastic book
Building wealth is something that is very important to me, I’m still young but I would like to retire early!
The one thing I noticed is there does not seem to be an end game.
What about risk management? You know insurance?
The housing market is a bubble I get it. So is debt.
How many people have a financial model to work from? What is the end game? How do we spend our money in retirement with less risk?
Nice review! Cash flow is definitely important to me, and I find net worth is not necessarily a great indicator of financial health.
Just in case I don’t win, I have already placed a hold on it at the library. 🙂
Thanks for the giveaway!
This seems very interesting, and changes in my health might force me to accelerate my retirement, so I can use all the help I can get… Thanks for the chance to win!
Am nearing retirement — advice with regards to CPP and OAS might be useful!
Sounds like just the book for us as retirement is not far off and we are DIY investors.
Free book? Sure, sounds right up my alley.
This book seems interesting with its focus on Canadian personal finance. I also like that the author dares say that renting can be better than home ownership, based on the opportunity cost of investing savings.
I think this book will comfort me in my choice to not invest simply for capital gains down the road, but to choose investments vehicules that can increase passive positive cashflow.
Looks like a good read.
I tend to disagree with David Trahair’s view, and feel some investment before all debt payment can be good, as well as prudent borrowing to invest. However, his previous books were interesting and made me think things through, and I would like to read this one as well to keep my perspective. Thanks
sounds like an interesting read! thanks for sharing
Would love to read the book!
Sounds like another educational book that I would love to have under my belt. Thanks for sharing your review. Cheers Mr.CBB
This sounds very informative. Thanks for the review.
thanks for the introduction and review!
Would love to get my hands on this!
Sounds like a great book to have, can always use the help. Great blog by the way!
I’m really interested to read this book! Of course we all like to hear confirmation of what we already know from experts, but this guy sounds like he knows what he’s talking about!
Pick Me! 😉
It sounds very interesting. I would love to win a copy. Thanks.
Seems like an interesting book, hopefully I win 🙂
I’m always looking for new ways to save smarter and this book seems like it will fit the bill perfectly.