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A 500 Year Investment Asset Allocation Plan That Still Works Today!

The following advice is over 500 years old!

It comes from one of the original value investors.

The advice is as relevant today, as it was over 500 years ago.

Listen to this…

“Divide your fortune into four equal parts: stocks, real estate, bonds and gold coins.

Be prepared to lose on one of them most of the time.

During inflation, you will lose on bonds and win on gold and real estate: during deflation, you lose on real estate and win on bonds, while your stocks will see you through both periods, though in a mixed fashion.

Whenever performance differences cause a major imbalance, rebalance your fortunes back to the four equal parts.” – Jacob Fugger the Rich, 1459-1525

Now listen to the words of the words of the wealthiest man on the planet:

“To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insight, or inside information.

What’s needed is a sound intellectual framework for decisions and the ability to keep emotions from corroding that framework.” – Warren Buffett

Are you getting this?

Remember, the asset class that you have invested in doesn’t lose you money – your reaction to it does!

The appropriate asset allocation accounts for 92% of a portfolios return (or retention of your money in a down market)…

How’s your present asset allocation model working?

Has it totally followed recent market declines?

Or has is acted as a “shock absorber” and helped you preserve your capital so that more of it can participate in the next “up turn” – when it comes…

Depending on your answers, maybe it’s time to do a review and overhaul!

Speaking of asset classes, don’t forget that there were people that invested in Canadian real estate ( as an asset class) in the early ‘80’s that lost money…


Because they became over extended with the high interest rates “of the day” and were forced to “toss in the towel” and walk away from their home/investment when they couldn’t afford their mortgage payments any longer.

I know, because some of these individuals are my clients today…

It’s important to remember that – no matter the asset class:

Bear markets (in that asset class) always end! Bull markets (in that asset class) are stronger and last longer!

In the long run, increases (in that asset class) far outweigh the declines.

Risk should not be avoided because it offers you “peace of mind”…

Appropriate “risk” must be assumed because of the opportunity for higher returns – over time!

In particular, equities offer one the highest “real returns” – “over time”.

All investors must realize that they cannot to expect to meet their reasonable goals without accepting some level of “market risk”.

That’s why we buy homes for example!

That’s also why we have equities in our investment portfolios!

But we must also not only understand that the level of “risk” (no matter the asset class) diminishes the longer one holds onto an investment – irrespective of that investment…

Just because home prices may have dropped (temporarily) – are we tempted to sell?

Of course not!

We still keep paying the mortgage!

So then, what about when the values of our investment portfolios are off?

Well, unfortunately, the answer to that varies…

The ones who “stay the course” invariably win!

Those that do not – well, they lose out!

You must remember that stock markets are “forward looking indicators ” from 3 to 6 to 12 months out.

On the other hand, real estate is a “lagging indicator” and often “trails” the economy as an indicator by up to 2 years!

Right there you have 2 differing asset classes that work and make us all money but are “priced” in 2 differing ways over the same time periods.

Remember, the pendulum always swings!

If things seem too good to be true in one asset class – they probably are.

On the other hand, if markets seem depressed, and the news media is predicting “doom and gloom”, a turn for the better is probably not that far away…

In fact, I know this to be true with over 28 years of experience in the financial services industry.

I believe that the “free market system” that we enjoy here in Canada (and by extension, North America at large) is more elastic than most people believe.

Over the years “the system” has shown a remarkable way of correcting excesses – both on the downside and as well as on the upside.

The pendulum always swings, but as long as innovation continues, and productivity increases, markets will rise over the long term – but not without its halts and/or “regressions” along the way.

How does an investor make sense of this?

With the resources and amount of information on the Internet, investors today can view markets on a minute to minute; an hourly basis; daily; weekly; monthly and yearly basis.

I refer to this as “noise”!


Because of the infinite amount of information that goes into the minute by minute movements of markets.

The Internet, and twenty four hour a day business channels add to the proliferation of information of news that affect stock markets.

Factors like weather, political comments, economic comments, corporate reporting, consumer buying reports, inflation updates, wars, assignations, terrorist attacks, and human emotions all go into the minute by minute changes in the market.

Each new piece of information affects millions of individual decisions that cause markets to move.

However, this “noise” has minimal impact on – the long term!

Remember, as long as innovation continues, and productivity increases, markets will rise over the long term – but not without its halts and/or “regressions” along the way.

So, remember:

“No matter what asset class that you are in – you will do well – over time!”

However, to reduce the volatility in your portfolio – and to give you “peace of mind” along the way – make sure to keep it all “in balance”!

Rather than trying to predict where the markets will go – get a group of assets working for you that provides enough protection if things go badly, and enough opportunity when things are going well.

Finding this optimum allocation, of course, always remains a challenge.

Here’s to your success!

Mark Huber’s Welcome Video

I look forward to connecting with you!

I can always be reached at:

Office: 604-880-1972

Email: successonthefly(AT)

Note: Replace (At) with @ This is to prevent SPAM!

Watch As Local Vancouver Insurance Broker Mark Huber Explains Your Life Insurance Options (A Quick Start Guide Video)

Hello and Welcome!

My name is Mark Huber I am a local Vancouver insurance broker and Certified Financial Planner (CFP) with over 28 years of experience in the financial services industry.

I have authored numerous blog posts, reports and videos over the years but I am best known for:

“The 13 Dirty Little Secrets Your Bank Doesn’t Want You To Know About Your Mortgage Insurance”

“How To Get Rid Of Your Mortgage And Create Wealth – The UnCanadian Way”

“How To Get Rid Of Your Credit Card Debt Fast”

You can access these resources through this site

So, that said, one of my roles as a financial planner is to offer guidance and assistance in helping you as you research your life insurance needs…

In fact, here is what B. Taylor, Surrey BC says:

“I first made contact with Mark Huber when I was searching for life insurance on the Internet.

Mark sent me a link to “Understanding Your Life Insurance Options” – a report that he authored which gave me a better understanding of which type of life insurance would best meet my needs.Mark guided me through the application process in a very efficient and professional way.

I would highly recommend Mark to anyone looking for life insurance.

Getting life insurance with the help of someone so pleasant and knowledgeable as Mark was a very positive experience.”

I am honored by that review and work hard on your behalf to continue raising the bar in client service.

You can read more reviews similar to this at:

Now, as a professional in the industry I work diligently to serve you and to make sure your needs are identified and that your personal and financial goals are met!

But first, let me ask you a question…

Focusing on insurance for a moment…

If I could explain life insurance to you in an understandable way in just a few minutes – wouldn’t you want to know?

Of course you would – and that’s why your here today.

And in fact, we’ll soon have you more knowledgeable than 95% of Canadians out there today!

Your lending institution offers “mortgage insurance”…

But why settle for an insurance product that does just one thing? Pay off your loan to them which leaves nothing for your family.

When it comes to protecting your mortgage and your other loans and obligations – as well as replacing the very most important thing – your ability to earn income – there are other insurance options to consider that protect your home as well as your
family’s future….

In other words, protect more than your mortgage – protect your families future!

Its interesting that while the need for life insurance can last a lifetime – it’s the reasons for insurance coverage that change over time…

Essentially, insurance products cover the evolution of needs through out ones lifetime.

The thing about life insurance is that it creates an instant estate – which can do many things!

Initially, it is used to “replace lost income” for the surviving partner in the event of premature death and to cover off things like a mortgage, loans, charge card debt, children’s education, etc.

However, it’s a balancing act.

Over time the need for insurance changes to preserving assets, conserving your estate from taxes, having money to pay for final expenses and to pay taxes due and payable on death.

Having insurance is not a right – it’s a privilege!

Insurance isn’t a commodity that you can get in and out of at will. You have to qualify for it medically to be insured.

And having life insurance in place before health issues begin is a very wise and prudent thing to do.

Following is a summary of the basic life insurance options available for you.

For younger clients term insurance is often considered more cost-effective for shorter term needs but here’s how it works…

A) 10 year term insurance.

This is the cheapest insurance today, but the price skyrockets every 10 years, becoming very, very expensive over time. You can cancel at anytime, but you get no money back.

Assuming a case where you continued to pay the increasing prices it will automatically cancel at age 80 or 85 anyways.

B) 20 year term insurance.

This is the same as a 10 year term, except the price won’t increase for 20 years. However, after 20 years, the price usually increases by 10X the amount. It will then increase every 20 years thereafter and automatically cancels at age 80 or age 85.

Side Note: When you get term insurance make sure that it is guaranteed renewable and that it is convertible to permanent options without having to requalify medically. Also, go with a provider that offers strong permanent solutions as well as competitive term products…You may not see the need or experience the benefit of this for some time but if and when you do – you’ll thank me for this planning strategy– trust me!

C) Permanent life insurance, Pay for Life.

With this option, the rate will never increase, so you will have insurance forever. A great option for this is Universal Life insurance.

D) Permanent life insurance – Paid off in 20 years.

With this option, you only pay for 20 years guaranteed, and then the insurance is paid off forever. The bonus feature is you can get more than 100% of your money back as time goes on! This also falls under Universal Life insurance category.

E) Combination Plan.

With this option you take some Term and some Permanent to meet both your current needs and future needs and budget.

Now to illustrate these various options we are going to use a 26 year old male, non smoker at Standard Rates.

Here are the rates for $400,000 of insurance coverage.

Option A
$400,000 – 10 year term

With this option the rate jumps every 10 years. So at age 36 the new rate is $64.89/month. At age 46 it’s $127.53/month. At age 56 it’s $315.45 per month and at age 66 it will be $920.61 per month and at age 76 it will be $2,114.73 per month! (How
would you feel about that?)

Then it automatically cancels at age 80 – assuming you’ve been paying all these years. You can cancel at anytime, but you receive no money back.

(Total premiums paid to age 80 – $301,249.80. Still a good deal for $400,000 of insurance coverage for 54 years.)

Option B
$400,000 – 20 year term

With this option, the rate jumps up every 20 years. So at age 46 the new rate is $158.58/month then at age 66 the rate is $1,017.54. It then automatically cancels at age 80, assuming you’ve been paying all these years. However chances are
you probably would cancel it at age 70 or so. Should you cancel you receive no money back.

(Total premiums paid to age 80 – $193,756.32. An even better deal for $400,000 of insurance coverage for 54 years.)

Option C
$400,000 – Permanent (Universal Life) – Pay for

With this option, the rate will never increase and the insurance will last forever. As long as you continue to pay, your family is eventually going to get the $400,000 as tax free payout, as everyone eventually dies. So if you passed away in
54 years at age 80, you would have paid a total of $73,671.12 in premiums. A great guaranteed return on your money.

This option is called Universal Life insurance and they come with a bonus feature where you can pay ABOVE the $113.69/month.

Anything you pay above that gets invested into a tax free savings account. As that account grows, your life insurance grows. It’s a fantastic feature, however you never have to use it if you don’t want.

Option D
$400,000 – Permanent (Universal Life) – Paid off
in 20 years

With this option you only pay for 20 years, and then your insurance is paid off forever. So after 20 years you’ve paid a total of $52,836.

So an even better return on your money.

The bonus feature is that this policy offers more than 100% cash back should you want to cancel your insurance after a certain time.

For example:
20 year cash back (age 46): $26,030
25 year cash back (age 51): $42,036
30 year cash back (age 56): $59,243
54 year cash back (age 80): $206,504

So even though you’ve stopped making payments after 20 years, your cash back options continue to GROW every year.

Option E
Everyone loves the low price of term, but term is not designed or priced for a long term solutions! As you have just seen.

Everyone loves the paid off features of option D and the greater than 100% cash back should you need to cancel, but of course the prices are much higher. Ideally the more you can afford of option D the better.

So, a good solution is to take a little bit of both.

For example $300,000 of 20 year term and $100,000 of 20 year Pay.

$300,000 – 20 year term – $26.10/month
$100,000 – Permanent (Universal Life) – Paid off
in 20 years – $167.43/month

What this does is give you $400,000 of coverage over the next 20 years with a guaranteed premium of $193.53/month.

Then at age 46, you cancel your term insurance, and you now have $100,000 of permanent life insurance coverage that is paid off for the rest of your life!

You know, if insurance were free we would all own allot of it.

But because it’s not, we need to review the need, the amount and the price – and make adjustments accordingly – to find what is suitable for you and for your pocketbook…

I realize this is a lot to absorb in one sitting, but I trust that it makes sense to you.

Perhaps you can see why it is useful to have an experienced guide to help identify all the practical options available for you.

Now in closing, the last thing to know is that getting insurance is a process – and it’s not guaranteed that you will even get coverage.

Contrary to popular belief, getting insurance is not a right – in fact – it’s a privilege…

So, if you think that you want to “think about it” so in fact, does the life insurance company…

They want to make sure that you are a worthy candidate to do business with.

They want to know that you will be a healthy person who can commit to paying for the privilege in accepting an insurance contract from them – and being able to pay for it…

In fact, it takes approximately five to seven weeks for the insurance company to “think about it”, make the medical reviews etc., before making up their mind that you may (or may not) get approved by them for life insurance.

The point being, is that you should feel very special if they come back with an offer to do business with you.


Because there are allot of people who apply – that are turned down because of either their health status or their families health background issues…

So it is going to take some time. The reason it takes time is because the insurance companies are very thorough when they’re doing their checkups and — it’s actually a good thing. You want them to be that thorough up front because once you’re
approved, now they’re on the hook. Now you’ve got them. So they’ve been very thorough and they’ve done their checkups, that type of thing, so if you – one day “fly to the angels” – they’re going to pay out for your family.

So to sum up:

Why did I put this information together for you?

Well, because I believe that an informed person will be able to make better decisions for what is right for their needs and situation.

Also, I provide the 3 things that are always in short supply: time, wisdom and trust…

And while the Internet gives great information – it doesn’t give “experience”!

Feel free to connect with me to get my experience working for you today!

I specialize in working with busy people like you and welcome your call.

The process is proven, easy and takes a minimum of your time.

My role is not to pressure you in anyway, but rather to help you through the process…

I look forward to the opportunity to be of service and speaking with you shortly.


Mark Huber, CFP

PS: I am always available for a chat about any thoughts you may have on this report or on anything else you may have on your mind.

Feel free to connect with me. I look forward to being of service…

Direct: 604-880-1972
successonthefly (AT)

Email2: askmark(At)

Note: Replace (At) with @ This is to prevent SPAM!

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Mark Huber

Mark Huber is a certified financial planner, author, speaker, coach and successful online entrepreneur. Marks philosophy: "The best way to predict your future is to create it...." Marks top requested titles: "How To Get Rid Of Credit Card Debt Fast" "How To Get Rid Of Your Mortgage And Create Wealth - The UnCanadian Way" Marks mission: "To teach, support and empower people as they transform their lives!"