The Snowball Effect: How Compound Interest Can Skyrocket Your Wealth-Building Journey

Diane Gogar • April 24, 2023

Are you interested in building long-term wealth?

If so, you'll be amazed at this incredible financial tool that can help you achieve your financial goals.

When used in combination with a smart investment strategy such as the Smith Maneuver, you can leverage this powerful tool to create a passive income stream and achieve financial freedom.

Here are some key points to consider:

The Power of Compound Interest

Compound interest refers to the interest earned on both the initial investment and the interest that accumulates over time. This means that the longer you invest, the more interest you earn, and the more your investment grows. Essentially, your money snowballs and becomes a powerful wealth-building tool.

Here's How


Suppose you invest $10,000 today in a well-diversified portfolio that earns an average annual return of 8%. 

In 30 years, that $10,000 investment would be worth approximately $100,000, thanks to the power of compound interest.

Now, let's combine this with the Smith Maneuver strategy. 


The Smith Maneuver Strategy

Using the Smith Maneuver, you can create a tax-deductible investment loan using your mortgage, allowing you to invest in income-producing properties. 

By doing so, you can accelerate the power of compound interest and create a passive income stream that can provide you with financial security for the long term.


Building Long-Term Wealth

Compounding interest and the Smith Maneuver can help you build long-term wealth and achieve financial freedom.

As a mortgage agent and certified Smith Maneuver specialist, I can help you create a customized plan that suits your unique financial goals and helps you build wealth for the long term.

Let's Implement

Here's an actionable strategy to help you implement the Smith Maneuver:

  1. Speak with a certified Smith Maneuver specialist to determine if this strategy suits you.

    (That's me! Click here to schedule a FREE Smith Maneuver Strategy Call)

  2. If the strategy is suitable, ensure you have enough equity in your home to implement the Smith Maneuver.

  3. Obtain a secured line of credit that you can use to invest in income-producing properties.

  4. Use the secured line of credit to invest in properties that generate income.

  5. Use the rental income your properties generate to pay off your mortgage and secured line of credit.

  6. Repeat the process until you have created a passive income stream that provides financial security for you and your family.


If you're ready to start building wealth through compound interest and the Smith Maneuver, let's discuss how we can work together to achieve your financial success.

Book a call with me to strategize and create a customized plan that suits your unique financial goals and helps you build wealth for the long term.


DIANE GOGAR
MORTGAGE PROFESSIONAL
CONTACT ME

Going Through A Divorce? Protect your Credit

By Diane Gogar • May 21, 2025
Divorces are challenging as there’s a lot to think about in a short amount of time, usually under pressure. And while handling finances is often at the forefront of the discussions related to the separation of assets, unfortunately, managing and maintaining personal credit can be swept aside to deal with later. So, if you happen to be going through or preparing for a divorce or separation, here are a few considerations that will help keep your credit and finances on track. The goal is to avoid significant setbacks as you look to rebuild your life. Manage Your Joint Debt If you have joint debt, you are both 100% responsible for that debt, which means that even if your ex-spouse has the legal responsibility to pay the debt, if your name is on the debt, you can be held responsible for the payments. Any financial obligation with your name on the account that falls into arrears will negatively impact your credit score, regardless of who is legally responsible for making the payments. A divorce settlement doesn’t mean anything to the lender. The last thing you want is for your ex-spouse’s poor financial management to negatively impact your credit score for the next six to seven years. Go through all your joint credit accounts, and if possible, cancel them and have the remaining balance transferred into a loan or credit card in the name of whoever will be responsible for the remaining debt. If possible, you should eliminate all joint debts. Now, it’s a good idea to check your credit report about three to six months after making the changes to ensure everything all joint debts have been closed and everything is reporting as it should be. It’s not uncommon for there to be errors on credit reports. Manage Your Bank Accounts Just as you should separate all your joint credit accounts, it’s a good idea to open a checking account in your name and start making all deposits there as soon as possible. You’ll want to set up the automatic withdrawals for the expenses and utilities you’ll be responsible for going forward in your own account. At the same time, you’ll want to close any joint bank accounts you have with your ex-spouse and gain exclusive access to any assets you have. It’s unfortunate, but even in the most amicable situations, money (or lack thereof) can cause people to make bad decisions; you want to protect yourself by protecting your assets. While opening new accounts, chances are your ex-spouse knows your passwords to online banking and might even know the pin to your bank card. Take this time to change all your passwords to something completely new, don’t just default to what you’ve used in the past. Better safe than sorry. Setup New Credit in Your Name There might be a chance that you’ve never had credit in your name alone or that you were a secondary signer on your ex-spouse’s credit card. If this is the case, it would be prudent to set up a small credit card in your name. Don’t worry about the limit; the goal is to get something in your name alone. Down the road, you can change things and work towards establishing a solid credit profile. If you have any questions about managing your credit through a divorce, please don’t hesitate to connect anytime. It would be a pleasure to work with you.

How Employment Status Impacts Your Mortgage Application

By Diane Gogar • May 14, 2025
Chances are if you’re applying for a mortgage, you feel confident about the state of your current employment or your ability to find a similar position if you need to. However, your actual employment status probably means more to the lender than you might think. You see, to a lender, your employment status is a strong indicator of your employer’s commitment to your continued employment. So, regardless of how you feel about your position, it’s what can be proven on paper that matters most. Let’s walk through some of the common ways lenders can look at employment status. Permanent Employment The gold star of employment. If your employer has made you a permanent employee, it means that your position is as secure as any position can be. When a lender sees permanent status (passed probation), it gives them the confidence that you’re valuable to the company and that they can rely on your income. Probationary Period Despite the quality of your job, if you’ve only been with the company for a short while, you’ll be required to prove that you’ve passed any probationary period. Although most probationary periods are typically 3-6 months, they can be longer. You might now even be aware that you’re under probation. The lender will want to make sure that you’re not under a probationary period because your employment can be terminated without any cause while under probation. Once you’ve made it through your initial evaluation, the lender will be more confident in your employment status. Now, it’s not the length of time with the employer that the lender is scrutinizing; instead, it’s the status of your probation. So if you’ve only been with a company for one month, but you’ve been working with them as a contractor for a few years, and they’re willing to waive the probationary period based on a previous relationship, that should give the lender all the confidence they need. We’ll have to get that documented. Parental Leave Suppose you’re currently on, planning to be on, or just about to be done a parental leave, regardless of the income you’re now collecting, as long as you have an employment letter that outlines your guaranteed return to work position (and date). In that case, you can use your return to work income to qualify on your mortgage application. It’s not the parental leave that the lender has issues with; it’s the ability you have to return to the position you left. Term Contracts Term contracts are hands down the most ambiguous and misunderstood employment status as it’s usually well-qualified and educated individuals who are working excellent jobs with no documented proof of future employment. A term contract indicates that you have a start date and an end date, and you are paid a specific amount for that specified amount of time. Unfortunately, the lack of stability here is not a lot for a lender to go on when evaluating your long-term ability to repay your mortgage. So to qualify income on a term contract, you want to establish the income you’ve received for at least two years. However, sometimes lenders like to see that your contract has been renewed at least once before considering it as income towards your mortgage application. In summary If you’ve recently changed jobs or are thinking about making a career change, and qualifying for a mortgage is on the horizon, or if you have any questions at all, please connect anytime. We can work through the details together and make sure you have a plan in place. It would be a pleasure to work with you!