We earn. We save. We plan. We live. We spend.

Then we often ask, what happened to MY money?

Despite the fact that Canada stopped minting the penny on May 4th, 2012, we do know, without a doubt, that you can’t get to a dollar without watching your pennies. AND every dollar counts when planning for the future. 

If we could grow money by hiding it under the mattress or digging a hole in the backyard and stashing the cash, we would. But money doesn’t grow on trees, and you can’t grow your pennies in soil.

So, what’s the answer?


Investing is the act of committing money or capital to an endeavour with the expectation of obtaining—generating a positive return—more money. Real growth happens, according to the experts, when that profit is re-invested and matures and then repeating that process over and over again.

People may choose to invest in stocks or bonds or both (hopefully through a professional advisor) as a means of growing their pennies.

Generally speaking, 

·      Stocks, buying ownership in a company.

·      Bonds, lending money to an organization for a set period of time.

·      Mutual Funds pool money from multiple investors to purchase a portfolio of securities.

·      Real Estate, buying, managing, selling property.

·      Alternative options, like commodities or cryptocurrency

For the sake of the metaphor, let’s assume, we can plant (invest) our pennies to grow. 

Like a garden, investing for a profitable return takes time through the good weather and bad (often short term turmoil in the market). If you don’t allow time for growth, the penny tree will not mature or create a profit for reinvestment. 

According to Warren Buffet here are some key principals to consider when looking at where to plant your trees.

·      Invest in what you know. Where there’s a natural trust in understanding your money will be used wisely by those you invest in.

·      Look for undervalued companies. Don’t fall victim to the buzz or the latest “hot” stock. Look for those trading at a discount to their intrinsic value.

·      Review the long term track record of success with projections of continued growth.

·      Invest in the competitive advantage, like strong brand recognition, market share, proprietary technology.

·      Stay with the plan. Stick to the strategy. Weed the area and allow your tree the best advantage to mature. Don’t be swayed by the bad weather. 

Within a benefit plan, employers often offer access to their penny “gardens” by their employees through a pension or Group Registered Retirement Savings Plan (RRSP). The basic benefits of this approach include:

·      Safety in numbers. When you don’t have a lot to invest personally, pooling your money with other’s increases the potential for profitable return over time.

·      Lower fees are applied on a group plan verses individual.

·      The set up and education choices on where to apply your pennies is provided at no cost to the employee to funds and investment options not necessarily available to individual investors.

·      Convenience of having the investment come direct off their pay. Employers work with the provider to set and manage the account overall.

·      Ease of tracking your pennies through on-line technology.

·      The tax advantage includes the contributions being tax-deductible.

·      Matching contributions means that to whatever limit the employer decides, they will match the employee’s investment. Two penny trees for the price of one.

When considering any benefit package, including Group RRSP’s, consider it from a best practices point of view:

·      Corporate budget

·      Tax advantage

·      Compensation alignment

·      Culture endorsement

·      Employee engagement

·      Increased productivity

·      Emotional wellbeing

·      Talent retention

There’s “power” in conversation. Let’s explore the possibilities together. I am here to help.

Book a virtual coffee to learn more.

Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. The site is read by a world-wide audience and employment, taxation, legal vary accordingly. Please seek legal, accounting and human resources counsel from qualified professionals to make certain your legal/accounting/compliance interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.