Let’s jump into the links as most personal finance bloggers descent upon Chicago.

1. PT Money. Check out every article on this blog and show your support for Phil!

2. I’m In No Hurry To Pay Down My Mortgage @ Canadian Finance Blog.

3. 5 Lessons I Learned From My First Job @ Christian PF.

4. Why You Will Never Get Rich Cutting Your Budget @ Budgets Are Sexy.

5. 5 Tips for Networking on a Budget @ Experiglot.

6. 10 Ways To Stay Calm In These Crazy Markets @ IS.

7. Dividend Growth Index @ TDGB.

8. The Big List of Little Savings That Go a Long Way @ GPT.

9. How to Set Up an Online Store  @ PIN.

10. How To Buy Stock With or Without a Broker @ Good Financial Cents.

11. Do I Need a Credit Card? @ Studenomics.

12. A Practical Way To Estimate And Budget For Home Maintenance Costs @ Money Smarts Blog.

13. Financial Strategy #5: Maintain Your Own Personal Bailout Fund @ FMF.

14. Inheritance? Forget it. 5 Reasons why Gen X & Y won’t Get Inheritances @ 20-Something Finance.

15. When Was the Last Time You Unplugged? @ Corbett Barr.

We all tend to forget that you need to love to write.

Blogging is all about delivering value. The only real way to deliver value is to consistently pump out amazing content that helps solve problems. This is as simple as the equation that eating well + exercise= weight loss. We all know what we need to do. We just forget sometimes or lose track of what’s important. How does this happen?

Somewhere between dealing with advertisers, networking with other bloggers, turning down lame guest posts, and “optimizing” our pages we tend to forget that we need to love how to write. I’ve certainly been guilty of this far too many times. There are just so many time-consuming behind-the-scenes tasks that come with blogging that it gets really easy to get lost and forget about the actual writing. We find ourselves worrying about such minute things and we forget what the readers care about the most.

Readers care about checking out compelling articles and maybe learning a thing or two. Readers don’t care about how optimized our pages are or how many advertiser emails we respond to.

Why do you need to love to write? Because all popular and successful blogs have one thing in common. That one thing is super-useful content that’s written in that blogger’s voice. If you don’t love to write then your readers and your peers will notice this right away. Whenever I go through phases where I don’t feel like writing I notice that my traffic goes down and the interaction on my blog decreases. This is likely because people realize that I’m not delivering A content. When I get back into things and put everything into my articles I notice that the amount of links goes up, I get more emails, I receive more comments on the posts, and traffic goes up. It sure seems to pay off to take my writing seriously.

You can argue that you don’t have to love how to write. Sure you can do video posts, podcasts, and other interactive stuff. The question is: how long can you keep it up for? How many videos/podcasts can you do before you need to finally write something?

How can your love for writing impact your income? If you write quality articles your traffic is bound to go up. You’re bound to get more links and more eyeballs. Where the eyeballs go, the advertising dollars follow. The more popular your blog gets, the more advertising offers that will come your way. That’s more income coming in. That’s more money for you. If you don’t feel like writing or if you publish C content you’ll get C results. This means less advertising, less readers, less feedback, and less interaction. Trust me, I’ve seen this happen too many times to me and my peers.

How can you love to write? By blogging about a topic that you already think about all of the time. I always think about personal finance, entrepreneurship, psychology, and getting more out of life. This is why I write on the topic. It’s also why I don’t write about certain lucrative topics out there that I just don’t care about. Writing about a topic that I care about allows me to think of tons of different post ideas on a daily basis. This allows me to love to write.

What’s the point of all of this? It doesn’t matter if you plan on starting a blog, are new to blogging, or have been blogging since the Stone Ages, you need to love to write. If not, then maybe blogging isn’t for you.

I’m challenging all bloggers to share how much time they have spent on writing vs. other blogging tasks. Please share your answers here with us.

You can always outsource.

There are simply some tasks that are either really time consuming or we just don’t want to engage in. I learned from this book that outsourcing can be done at almost every level (even the dating world). You can outsource your email, mundane daily tasks, shopping, customer service, etc. The benefit to all of this outsourcing is that you have more time to focus on your business or to do whatever it is that you enjoy doing. Of course the flip side is that you lose money. This then leads to a vital calculation– how and what can you save by outsourcing out certain tasks.

Cut out time-sucks.

There are many activities in a typical day that do nothing more than just waste our time. Anything from a co-worker that goes on forever or a meaningless task that takes hours to complete. My favorite time-suck to cut out involved responding to pointless emails. Anyone that runs a site or has a fairly public email understands how it feels to receive dozens of useless emails. Instead of taking the time to respond to each email, they can either be: deleted, given a standard response, or completely filtered out. Email is just one of the many time-sucks that needs to be cut out. As bad as it made me feel initially, I’ve come to accept that I engage in many time-consuming activities on a typical day that I need to cut out. What time-suck are you working on cutting out of your schedule?

There’s stuff you can’t control.

I used to get overwhelmed with the excruciating minutiae of everyday life. Now I’ve learned to accept that there are many things in life that I simply just can’t control. I can’t control the news. I can’t control decisions made by higher powers. I can’t control what major corporations do. The book suggest that if you can’t act upon something then you should just let it be. Of course there are times where your power may seem minimal but you should still try. However, more often than not we often spend too much time worrying about stuff that we can’t control. We need to learn to let it go.

Time is highly valuable.

When we thinking about making lots of money, we often neglect the massive amounts of time involved. I have a friend that makes really good money. Unfortunately, he’s pretty much always working. He works two jobs and they consume the majority of his time. His bank account is nicely padded, but at what cost? Are you willing to give up all of your free time? I’m certainly not. After reading this book I’ve started to highly value my time. Time away from activities that bring me pleasure and from loved ones needs to be justified. I’m no longer willing to spend all of my time on work. There needs to be more to life.

What have you learned from the 4-Hour Workweek? Do you view the book as a scam or has it helped you out? Please share with us.

At the beginning of the year, I wrote about my 4 financial goals for 2010. I had selected the following:

#1 Pay off the loan from my parents (done!)

#2 Increase my online income by 50% (work in progress)

#3 Finish in the top 10 financial planners in Montreal (work in progress)

#4 Increase my base salary by 15% (this is where my challenge was).

When I reviewed my financial goals in June, I told you that I just got a huge raise of…drum roll…..1.67%! This was basically just enough to cover inflation (not really in fact since the 1.67% salary raise is taxed!). Therefore, I was pretty far away from my 15% raise this year.

Why Did I Think I Was Able To Get a 15% Raise During A Recession?

I’d say that no matter what the economy looks like, no matter if your employer is hiring or laying off people, there are key employees that will keep the company, the department or the team alive. In my branch, I am the key employee right now as I am enjoying my best years as a financial planner. I don’t mind working hard and I don’t mind spending hours making cold calls and delivering my sales pitch.

At the beginning of the year, I looked at where I wanted to be in 12 months. The objective this year was pretty simple; get a bigger portfolio in order to get a bigger pay check. When I looked at the bigger portfolios in the downtown area, I noticed that they were making about 15% more than me. Therefore, I thought that I could get a 15% raise within the next 12 months.

How to get a salary raise after a raise?

This one is not as simple as knocking on your boss’ door. In fact, if you are not the top producer in your department, I doubt that the following method would work out. It requires a lot of tact and can be quite risky if you abuse it.

#1 Make yourself interesting to other managers

During the past 18 months, I have spent a lot of time talking to other managers so they get to know me and so they remember my name and my face . It was very important to build my network slowly but surely to make sure I can make a quick move if necessary.

#2 Bring in the numbers

Having a good network will get you far, but bringing in the numbers and becoming the key employee in your department will get you exactly where you want to be. So for the past 2 years, I have worked very hard to bring in solid numbers and demonstrate consistency. A good year means nothing in a lot of fields (just think about a hockey player who scores 30 goals in his rookie season… he might never do it again!). So most managers won’t agree to give you a high pay check right after a good year, they want to hire someone with a good work ethic and that is able to do consistent effort. Those are the true keys to bring the numbers.

#3 Apply for a bigger job

During this summer, there was an open position for a financial planner with a bigger book downtown. Due to my great network, I was able to know it before it was posted (I knew the guy that was leaving) and I due to my past results, I was called for an interview.

#4 Make sure you boss knows you applied

Right after I sent my resume for the job (not before because they will think that you’re bluffing), I went into my boss’ office and told him about it. I was straight forward and he wasn’t surprised by my decision.

#5 Open the door for negotiation

This is where the fun starts. When I told him that I applied and that I wanted to work in another branch, I opened the door for him to make a counter offer. I told him that I was super happy where I work (which is true) and that I would prefer to stay here. However, making more money was the real reason why I applied because my wife is at home and I have 2 kids (here again, a bit sentimental but always use the truth!).

#6 Set a time frame

I also told him that if he was able to match my salary, I would not go to my interview which was scheduled in 2 days. Therefore, he had 48 hours to think about it knowing that if I had to go to the interview, chances are that I would switch branches.

You got the raise? Then 2 more things you need to do:

Once I got my raise, there are 2 important things I will do:

#1 shut my mouth (just telling people that you had a nice agreement and that you are happy is sufficient, you don’t want to open Pandora’s box)

#2 shut my mouth (during the upcoming years, I won’t have much room to negotiation for a higher salary. This is why I will have to shut my mouth and know the limit of generosity from my manager ).

So I’m done with 2 of my 4 objectives for the year! I still have 4 months to complete my goals for this year .

Image credit

Before I start with my thoughts on the topic, I must admit that I have never worked with a revenue of 100% commissions. I have worked with several independent advisors and brokers but I have never experienced it myself (so if you are an independent advisor and want to add your thoughts, you are welcome to do so!). And with that said, salary or commission, what is best to start with?

Pros of working as a CFP in a bank (or as a salaried employee).

What I like about working for a bank is the hybrid compensation model. We have a decent base salary but our pay check can become very interesting with our year end bonus. What is nice is that I can have a few weeks where I don’t close any deals and still not have to worry about my mortgage payment and my ability to feed my family. My base income will cover for all my financial needs and my bonus will cover all the extras.

Banks are usually a good place to start with as a certified financial planner. You are given a book and learn how to deal with clients that are already “warm” to the bank. It’s easier to grow your book since you will have “free rides” when clients will just come in to invest or to take a mortgage with “their bank”.

Cons of working as a CFP in a bank

As is the case with any other regular job, you are not your own boss. You do not own your book of clients and you can’t make your own schedule. You can’t sell what you want to sell and you have sales objectives that don’t necessarily jive with your personality. You will also have to do tasks that are not always related your functions (like opening accounts, dealing with banking transaction fees, selling Visa cards, etc.).

The last downside of working as a CFP in a bank is probably the potential for salary increases. You rapidly reach their highest bracket and you are sitting on it until you get a promotion for another type of job. While you have a pretty good salary, you can’t dream of making more than 150K with most banks.

Pros of working as an 100% commission CFP

Sky is the limit in terms of income . I have met several people making more than 500K/year. In addition to that, once you have built your portfolio of clients, you benefit from a steady flow of income in trailer fees every year. Therefore, there are advisors making 50K-100k per year just by waking up in the morning.

You are also your own boss. This means two awesome things: #1 you make your own schedule and nobody is watching you. #2 you can deduct tons of expenses before you pay income taxes .

You usually have a coach or director that will teach you how “real life” works. I think you have the opportunity to learn a lot faster since you are on your own and you need to make a lot of mistakes to succeed.

Cons of working as a 100% commission CFP

Now that I have hyped it up, I will drag you down to earth; 100% commission based CFP is a very hard job. The turnover for new advisors is 80% in their first year. The average income after a year is 24K. And I won’t tell you how many hours, nights and weekends you need to do in order to make 30K the first year! The sad truth is that it’s not made for everybody.

People don’t like to be followed and asked to explain their results. On the other hand, most people don’t do much if they are not required to it by their supervisor. If you are not highly self-driven, forget about being on 100% commission.

Since you don’t have a book of clients, you have to build it. It is ten times harder to get an appointment and close a deal when the person doesn’t even know you exist.

One last killer of being on a commission basis is that your income is not stable. Therefore, when you have a good month, it’s not time to celebrate but time to put money aside and make sure it is available for the bad months.

Final thoughts on salary and commission based CFP jobs

I think people are made to do either one of them (and sometimes both!). Fear would be the #1 factor why top salaried performers don’t make the jump and procrastination would be the #1 factor for 100% commission CFP who don’t make the cut.

I have made a chart with the comparison of pros and cons of both type of CFP positions. Don’t hesitate to contact me if you have any other questions about the best job of the world .

Image credit #1
image credit #2

Last morning, I jumped off a plane…. HAPPY BIRTHAYYYYY! (this was my wife’s birthday and we went doing free fall Aaaahhh!).

Here are some great reads for the weekend:

Friend or Foe: Credit Card @ Green Panda Treehouse

A Day for Zombies and Vampires @ Intelligent Speculator

How to network @ Money Smarts Blog

Saving on currency conversion @ Canadian Capitalist

Ipad Giveway @ Where Does All My Money Go

The Basics of Credit Report @ Million Dollar Journey

Getting older and closer to financial independence @ Canadian Dream

A dividend rule that can help your investing performance @ The Dividend Guy

Modern Portfolio Theory @ Balance Junkie

Why do some stocks get more attention than others? @ Thicken my Wallet

25 basics steps to get out of debts @ Financial Highway

You might be crazy to not buy Euro now @ Money Energy

Stop 401(k) contribution to pay off debts @ Debt Free Adventure

Carnival of Personal Finance

Carnival of Money Hack

Carnival of Money Stories

To go variable or not to go variable? This will be one of the great questions regarding Canadian mortgage rates in 2010. Since the beginning of 2008, Canadian home owners have been fortunate to benefit as the Bank of Canada dropped its interest rates lower and lower until its hovers near the floor with a 0.25% overnight interest rate.

Mortgages rates have obviously followed this trend and it is now possible to have a variable mortgage at prime (2.25%) or even lower if you negotiate with your banker (anyone had heard of prime – 0.25% yet?). However, some people may also be tempted to lock in their mortgage rates for a five year term for a little less than 4.00%.

While I don’t plan on playing the economic oracle, I’ll share with you my thoughts on fixed versus variable mortgage loans according to the current economic situation.

2 Reasons why you should go for a Fixed Rate Mortgage

I am not a big fan of fixed rate mortgage loans and even though the variable mortgage rates will increase in the upcoming years, I still think it would be a bad move to switch for a fixed rate mortgage loan.

Our economy grows faster than the US economy and our dollar is still pretty strong (thanks to the resources boost!). Increasing drastically the short-term interest rates in this situation will likely strengthen our dollar and push it over parity. This is something we surely don’t want as our manufacturing industry will suffer, cuts jobs and we will go back to the same slow motion economy. As previously mentioned the government will probably reduce the maximum amortization for a mortgage back to 30 years or increase the minimum cash down requirement in order to slow down the housing boom.

With that said, there are still 2 reasons why you should go for a fixed mortgage rate:

#1 If you are a young owner with a tight budget

If you just purchased your home and you are running on a tight budget already, you certainly can’t afford a rising interest rate environment. Therefore, it’s not worth taking chances with being wrong in your interest rate predictions. Lock down your mortgage loan rate around 4.00% or less for 5 years and concentrate on paying down your debts while increasing your income so you can enjoy the interest rate fluctuations of a variable rate in 5 years.

#2 If you buy a rental property

Then again, if you can afford interest rate fluctuations over time, you may want to consider the variable rate. However, if you prefer to keep your investment return projections steady, you can go with a fixed mortgage rate (that is tax deductible on top of that!). With a fixed payment, you will know in advance how much you will receive per month for the next 5 years (unless your renters do a fly by night ).

And for those of you who choose the variable rate mortgage in 2010…

I think it is still the best choice even if you know for sure that interest rates will go up sooner than later. Why? Simply because you must look at a picture larger than the span of 5 years. (not to mention than the financial institutions always cover the fixed rates with a safety premium that borrowers gladly cough up!)

When buying a property, you probably took at a 25 – 30 year mortgage loan. Therefore, you should be worried about which interest rate strategies you must take in order to pay the less interest possible over the span of 30 years… not 5 years.

Mathematically, the variable interest rate has always been cheaper over a 20 years amortization period or greater. I can guarantee you that you will pay more interest compared to a 5 years locked-in mortgage rate once in a while. However, over the long run, you will benefit from the interest rate dips and pay less in interest (or pay down your mortgage faster).

image source: woodleywonderworks

The trend is your friend

This quote comes from momentum traders. According to them, one must not try to go against the market trend. In doing so, one will probably buy too high or sell too low. The problem is that you can only surf the trend for so long. One day or another, the trend will change and you will hit the wall…

Sell in May and Go Away

According to statistics, there is less profit to be made during the summer months on the stock market. Theory being that many investors sell their stocks at the end of spring and reinvest in the stock market in the fall. I’ve already given my opinion on this one by telling you not to sell in May and to avoid the market timing methodology.

The more certain the crowd is, the surer it is to be wrong

This explains how the stock market can be psychotic. When everybody is convinced of something, chances are that they are completely wrong. There is a psychological concept that describes when a group of people agree on one point, it is almost impossible to change their minds as they convince each other the “group” is right. This is the perfect indicator that when everybody sells, this is probably the right time to buy

Occasionally, successful investing requires inactivity. (Warren Buffett)

Patience is king when you want to make serious money on the stock market. When Canadian Bank stocks were dropping faster than rain, was there any rationale to it? Nope. So being patient with these stocks was the right approach. If you did sell them back in December, I suggest you don’t look at them today… it might ruin your day!

Don’t marry your stocks

One must not fall in love with his holdings. The market doesn’t care if you love a company. Therefore, you might see your “favourite” stocks plunging because advantages in their fundamental characteristics are not there anymore.

Price is king, but volume is the power behind the price.

The price of a stock is really important as it will determine your profit or loss. However, if there is no volume, the price is subject to wild fluctuations. While I don’t think it affects general trends (i.e. when the market went up from March to June, it wasn’t just a high volume of transactions), I do think this is applicable for small caps and penny stocks. It is pretty hard to determine the fair value of a stock that jumps and plummets by 10% weekly. This is what happens when there is minimal volume to support a price and few makers in its market.

I actually have more quotes, so I’ll keep a few for tomorrow

Here we go, now you are reading my title and you think “this guy, this little Quebequer who hates his country…. Such a shame!”. Not quite right. In fact, I am very proud to be Canadian and if ever Quebec separates, I’ll be moving in Western Canada for sure!

However, Canada Day is pretty special in Quebec; this is also called “Moving Day”. For some unknown reason, most rent expires on July 1^st and then, most people move on that date. The thing is that I always have a friend that moves on that date as well!

Therefore, again, today I am stuck driving to Montreal, get stuck in traffic and move furniture and boxes the whole day. The great part is that I have to work tomorrow morning…

However, I really love the new Olympic Vancouver 2010 Maple Leaf Poster:

So I leave you enjoy your Canada while I’ll be sweating and swearing all day!