To quote Morgan Housel, “Wealth is what you don’t see”.

Many average people struggle to understand what true wealth is.

Have you ever seen someone drive by in a BMW and just assume that they must be wealthy?

The funny thing is, there is a good chance that same person is on the brink of bankruptcy.

Being an insurance advisor, I see it everyday.

Just this week, I met over a Zoom call with a really nice young couple to review their life insurance situation. They have been clients for a while, and in recent years, have done quite well.

When we first met, they were just starting out in their careers making starting salaries.

Still without kids, they both moved up the corporate ladder and are making great incomes.

They have a nice 2-story house, a pool, a BMW SUV, and an Audi sports car. It was a Zoom call, so I didn’t really get to judge their clothes, but I would bet they have some really fancy clothes and shoes too LOL.

At one glance, you would think they made. You would think they’re rich.

But after looking deeper, it was evident that the only asset they owned was their house. And it was 95% leveraged.

It boggled my mind. Based on their incomes, by no means were they rich, but they should be comfortable.

Instead, they are probably 1-2 months job loss away from being insolvent.


To quote Morgan Housel again, “spending money to show people how much money you have is the fastest way to have less money.”

I can’t tell you many times I pull up to one of our rental properties and see the tenant with a nicer car than mine (hint: as of today, it’s every single property we own!).

Some of them make 25% of my household income, yet they are driving nicer cars than I am.

True wealth is NOT about how much money you can spend or how many things you can buy.

True wealth is about control. Control of your income and control of your time.

True wealth is what you DON’T see.

True wealth is the Position of FU.

We truly believe, for Canadians to achieve this control, they need good, income-producing assets.

This is an investment philosophy that focuses on Cashflow. Your lifestyle will determine if and when you are sitting in the Position of FU.

But we can tell you, without assets that provide you with cashflow, there is no way you can sit in that position.

If that fancy car makes you happy, by all means go for it. Just recognize that you will need more cashflow to get to that glorious position of FU.

If you don’t build cashflow, so be it. Just recognize that you will never have control. You will rely on your employer, your government, the stock markets, and your debtors for the rest of your life.


Vince & Mike

P.S. Morgan Housel is the author of “The Psychology of Money.” My best read of 2021 so far. Could not put it down.