What I wish I’d see less of are stories about how to beat the stock market and ones with headlines that make saving for retirement sound impossible. Everyone’s individual situation is different, but the one piece of advice I bet could help most everyone is to keep saving or start saving in some way – be it $10 a week or $100 a month, and to keep your finances simple – simple enough for you to understand and to manage on your own.

I know it doesn’t sound sexy or sophisticated, but I can guarantee that it works. It has for many of our close to two million clients, especially those who have taken some simple steps to build their savings effortlessly through an automatic savings plan, or stretched their savings further by avoiding or reducing unnecessary and excessive fees for financial products.

At this time of year particularly in Canada, the market is flooded with voices, opinions and advice on everything from picking mutual funds to RSP contributions and what products deliver the best tax savings. I hope ING DIRECT’s voice stands out to Canadians. I hope we can help put things in perspective, eliminate some of the confusion and anxiety around saving money, demonstrate we offer a different choice and advocate the importance of saving without making it seem impossible.

I’m personally committed to reaching as many Canadians as I can to spread this message. I want to be part of your conversations about money, and encourage you to reach out to me via this blog, my Peter Aceto Facebook page www.facebook.com/savingsceo or on Twitter @CEO_INGDIRECT, to start a dialogue about achieving greater financial wellbeing in your life.

Turns out that in the three years since they first became available, many of us either haven’t opened a tax-free savings account at all or find their contribution rules confusing.

To get a better understanding about why tax-free savings accounts haven’t hit critical mass, we did a perception survey recently on Canadians­ and TFSAs. Here are some highlights from the results:

- Less than half of Canadians say they have a TFSA;

- 37 per cent of Canadians only have a vague idea of how they work; and

- A quarter of Canadians have contributed less than half of their available TFSA contribution room (which is currently $15,000).

At their core, tax-free savings accounts boil down to a simple way Canadians can save money tax-free. While similar studies suggest it is confusion about contributions rules that deter many people from using them, I think there may be something larger at play.

A big part of being in control of your financial wellbeing is about getting an understanding about relatively easy-to-use products that help you save money, one tax-free dollar at a time.

There are some huge benefits of the TFSA versus other registered products: flexibility in saving for short or long-term goals, access to the money if it’s required sooner than we had planned; and never losing contribution room even if you withdraw funds.

My sense is that many Canadians haven’t opened an account because they are put off by the $5,000 a year contribution message. While there is no minimum contribution amount required to open an account, some of us might see that number and think TFSAs aren’t for them – which simply isn’t true. You can deposit as little an amount as you’re able – $5,000 a year is simply the annual cap.   Another thing could be that people haven’t yet realized the benefit of saving tax-free over the long term. As the principal amount increases, the magic of compounding takes hold, and tax savings become more significant.

January 1^st marks the start of the fourth year to make TFSA contributions. As people continue to educate themselves about their money, I hope TFSAs start to take a more prominent role in people’s financial plans.

And whether that means opening at TFSA with ING DIRECT or another bank isn’t the point at all. It’s just that more Canadians start opening them up.

Just as the government is intent on making sure the economy continues to grow, Canadians also have to be made aware of the need to make the right financial decisions now, so that their long-term financial well-being is taken care of.

I myself and ING DIRECT have long-held concerns regarding the level of consumer debt in Canada. If you read DIRECT TALK regularly, you know we believe it is a serious issue more of us have to start paying attention to, as it has a real impact on our future. Canadians should understand the implications of debt and what it means to max out credit cards or lines-of-credit, both today and tomorrow.

To make financial well-being more concrete, ING DIRECT has submitted three recommendations to this Committee. Here’s what we’ve proposed:

1. More education for individual Canadians on the savings needed for retirement through the creation of an annual personalized “check-up” letter;

2. Encourage RRSP participation by younger Canadians through the creation of a Canada Retirement Savings Grant (CRSG) for individuals aged 18 to 24; and
3. Proceed with the introduction of Pooled Registered Pension Plans – new, low-cost retirement savings vehicles that will help better meet the retirement objectives of Canadians.

I hope all Canadians will soon take note of these recommendations and that over time, retirement, as well as consumer debt and saving money regularly, become a bigger part of a larger conversation about financial well-being.

It is, after all, a conversation worth having, don’t you think?

Here are a few threads from his new book that I liked as they relate to money: faulty wiring, why choosing your friends wisely matters and the power of perspective.

You want to know the real reason people overspend? According to Chilton, our brains make us. There. It’s not complex; we are wired for immediate gratification going back to the Caveman. Knowing that explains a lot about spending habits and why we must have that pair of shoes or that 3D plasma TV, right now.

Who you hang out with may also impact the way you spend or save money. Chilton talks about a time when people generally associated only with like income levels, which worked out okay, financially speaking. Today, though, it’s easier than ever to connect with people of all incomes. Unless you have access to a friend’s tax return, “keeping up” with people whose income and inheritance you know nothing about is very difficult, not to mention financially hazardous.

Then there’s the power of perspective, another thing Chilton believes we should all use more often. It’s a big, bad, crazy world out there, right? Chilton believes we all lose sight of the fact that by living in Canada, we’ve won the geographical lottery. Stressing about stainless steel stoves and granite countertops is meaningless (and not to mention a fast way to financial ruin), when you consider that one in six people around the world goes without food every day. Perspective is everything and a powerful tool that can motivate good money habits.

There are a few reasons why I think this book may be more important than the original: Canadians admit that it’s harder than ever to reach their financial goals; one in four Canadians (24%) is currently saving less than $1,000 a year; thirty-six per cent of Canadians say that they don’t save any money on an annual basis, and half of Canadians (54%) say they live paycheque to paycheque.

This is scary stuff but it really doesn’t have to be. Canadians need a wake-up call, and while this book may not be it entirely, the ideas within it will take you where you need to go. As a nation, I think average Canadians have been lured away from the conservative saving habits that in decades past helped define them. We need to get back to basics. We need to get back to being a nation of savers – something we used to be great at.

Resist the credit pushing and the temptingly low cost of borrowing money (I recommend using this low rate environment to pay your mortgage off faster). Start paying yourself first and you’ll build a nest egg that will help you sleep at night and be happier down the road (over 30% of ING Direct customers have an Automatic Savings Plan in place – saving a little every week or two). That’s the kind of advice Chilton and Aceto would happily sign off on.

If this story is starting to resonate, it’s because it should. On a national or individual basis – U.S. or Canada – our debt levels are out of control. That the U.S. government pays $250 billion annually in interest payments alone is only one of the startling tidbits to surface in this drama.

According to this article, the U.S. government takes in $2.16 trillion in revenue each year. Their debt (currently $14.3 trillion) is six times more than their annual revenue. On an individual basis, that’s like earning $100,000 a year while carrying $600,000 in credit card debt. Not good.

Our gross domestic product to debt ratio is one way we determine a country’s financial health. It tells you how much money a country borrows in relation to the goods and services it produces and speaks to the nation’s ability to pay it back. Governments strive for a lower number. Right now, the U.S. has a debt-to-GDP ratio of 58.9 per cent or higher. By comparison, in Canada, that number is 34 percent.

We cannot ignore the parallels between the situation in the U.S and personal debt levels in Canada. As individuals, we can’t ask for an act of Congress or bill in the House of Commons to provide us more money to pay our bills.

When interest rates are at historic lows for a long time we can grow comfortable with high levels of debt. This is dangerous. When rates begin to rise it won’t feel good anymore and the time for fixing the problem will have come and gone.

Getsmarteraboutmoney.ca has some good things to say about finding a healthy personal debt ceiling. Between 30 and 40 percent (including your mortgage) is a reasonable amount. More and you will feel a strain on your budget.

Borrowing more and more cannot continue forever. Whatever the outcome, now is a good time to get informed on the U.S. debt situation and apply those lessons to your own personal finances. These political headlines should be reminders to us as consumers that the same debt dangers await. When you continue to buy big screen TV’s and bigger houses, this is how the spiral ends when there’s no more money left to be borrowed.

But we shouldn’t avoid it. In fact we should do the opposite and take it head on. Actually, it’s not really that complicated. Start today by beginning to save something – a little or a lot – on a systematic basis. You know, $50 per week or $100 per month. This advice is not new, or complicated, or sexy, but it is powerful. No matter the amount, the fact that you are saving something, gives you freedom. Saving will give you freedom for your future and give you the potential to take advantage of an opportunity when it comes your way or to bail you out on a rainy day.

However you choose to save and for whatever goal, beware of shortchanging your savings by paying unnecessary fees. Fees come in small bite sizes but they eat away a significant portion in the end. A recent survey we conducted with Angus Reid found that almost half of Canadians are unsure of the fees they pay to buy mutual funds – one of the most popular investments we use to save for retirement. If you add up all the unnecessary fees you pay over several decades of investing, they can make a huge difference in what you’re left with in your golden years.

At the end of the day, no matter where you choose to save your money, we get satisfaction from knowing we are helping Canadians take control of their financial destiny. With a bit of information, more and more Canadians are feeling empowered to take their saving and retirement planning into their own hands.

There is no secret to saving for retirement. It’s the same as saving for any other goal, financial or otherwise. Getting started is just the first step but it is the biggest step. And like many other goals, each step after the first is easier than the last.

This is the solution we advocate at ING DIRECT, and one that I believe in personally. Any amount, be it large or small, does make a difference. It’s easy to set up automatic payments into an RRSP account or into a high-interest savings account as a means of building your retirement savings – set it and forget it. It’s that simple.

We all agree that being healthy is very important. And we know there’s an inherent connection with health and productivity. I personally have seen the results. I grew up playing many sports and like nothing more than a good game of hockey or playing soccer in our ING DIRECT League. But as you can imagine I have a demanding work schedule and exercise may sometimes take a back seat. Ultimately, I make choices that have predictable consequences. The more consistent exercise I have in my week, the more creative I am for my team and the more connected I am to them.

We foster a culture of creativity at ING DIRECT. We engage on all levels and I have seen how much our ideas flow when we make the choices to push harder in our daily lives. You’ve heard a lot of people say, exercise takes effort. No kidding! But the trick is to make a habit of health. I work out four times a week. I make healthy eating choices (usually) because I have a responsibility. My responsibility is to contribute at the highest level to our team at ING DIRECT, to Canadians and to my family.

I recently read Dan Buettner’s book, Blue Zones. Buettner visited several pockets around the globe to measure how some people are living considerably longer and better. Buettner revealed his findings in fascinating behaviour categories that reflect our needs to move naturally, live purposefully, eat wisely and belong to our communities. He talks of our increasingly isolated living, the importance of having balance and remaining active within our society. I agree with Buettner’s research, particularly as it relates to our need for moving naturally. Our quality of life is a function of our environment. Does your home, office, community present you with natural ways to move for the activities that are of interest to you? If you exercise, do you have a gym nearby? If you run, are you near a track or a trail?

We owe it to Canadians to provide them with the infrastructure to sustain healthy living and wiser choices. That’s why we at ING DIRECT decided to sponsor BIXI, a public bike program that is expected to be launched in Toronto in May, 2011. BIXI will enable Torontonians with more options for getting around the city while improving our transportation network. Not only will BIXI significantly reduce the cost of commuting but it will make a healthy impact on our city and our lives. These types of changes to our environment and infrastructure of our cities will influence our habits and make it easier to promote and make good choices. Toronto is now the second city in Canada, next to Montreal, to adopt the BIXI public bike system and I hope other cities will follow suit and allow Canadians to start making changes to their daily lives.

The secret lies in what you do to integrate what is around us into your daily life. We need to shift our thinking when it comes to health. The prevailing mentality that views exercise as a luxury in relation to our obligations to our jobs needs to change. It is our responsibility to be consistent with our habit of health. How well you live is connected to how well you produce and that, is up to you.

But even though we are separated by geography, we are all connected in our dedication to our work, to providing you the best products with no fees or minimums, and to bringing the power of saving to all Canadians. And we do this best when we get together at a Rally to celebrate.

We did this recently, and let me tell you it was big! ING DIRECT employees came together as a team to reflect – together – on where we’ve been and where we’re going. I personally believe that you learn from the past by honouring the hard work and dedication of everyone who contributed to your current success.

For myself, the journey started with Arkadi Kuhlmann, current CEO of ING DIRECT USA. He was my inspiration for joining ING DIRECT, as the 8th employee.

Time Magazine called Arkadi Kuhlmann “ING DIRECT‘s Man on a Mission.” He helped create the idea of a direct bank because he was annoyed by the entrenched, homogenous practices of old-style banks and felt there was no consumer choice in the marketplace of a different, more cost-effective way of banking. He felt, as we still do, that old-style banks fail to offer true value or promote savings and that it was ridiculous for customers to have no choice but to pay astronomical bank fees. And, Arkadi believed that it wasn’t too much to ask that a real person answer the telephone.

He had a vision for a new kind of bank… a vision that really captured my attention… a vision every employee shares in their work each day for ING DIRECT.

We started laying the groundwork in 1996, preparing for what would become ING DIRECT, which eventually led to the launch of our “Save Your Money” campaign in 1997 when we officially opened for business offering Canadians a new way to do their banking. That year, we also opened the Toronto Café, the first of our four Cafés. Oddly enough I missed the official 1997 launch. But I had a good excuse. I was getting married that very day!

Our first commercial introducing us to Canadians began with these words: “Out here, you have real power. People compete for your business.”

We talked not about being a bank, but being “something different.” And we introduced our cause – to help Canadians save their money. This was our chance to make a difference.

We started by offering our Investment Savings Account and long-term GICs, but what most people remember is the emergence of our great TV commercials involving Frederic De Groot, who is actually an actor famous for playing a detective on Dutch television.

And we started to grow. We launched our lending program and U.S. dollar savings accounts in 1998. By 2003 we had one million customers, and in 2004 we launched the low-cost “un-mortgage”, a revolutionary way for a bank to view their customer’s mortgages.

Then in 2007, we celebrated our 10th anniversary, but with no intention of slowing down. In 2008, we launched the Streetwise Funds and became the first bank to offer Canadians a Tax-Free Savings Account.

By living our brand every day in every interaction with you, our customers – we’ve become the No. 1 direct bank in Canada, the 7th largest consumer bank and 6th largest mortgage producer in Canada.

And we thank you for this support and success. After all, this is a two-way relationship; one we hope you also feel has enriched your life in a small or big way. You’ve told us you think we are a leader in savings, an innovative company, and a pretty cool bank! We wish you could have attended our rally, but rest assured, your spirits as customers who believe in the power of saving was present.

Then on November 5th, I gave a speech to 475 business students at my Alma mater, The University of Western Ontario. I chose to share with them my view that the best predictor of one’s success in work and life is their passion. If you pursue endeavours you are passionate about, you will likely succeed. To do this, you need to first know what your passion is so that when the opportunity presents itself, you will be ready. I have always believed that the most successful people are those that take the time to discover what they love, their strengths and then build on them to carve out a career path. They are also honest with themselves about what they love to do as opposed to what they think they ‘should’ be doing. It’s not always easy as there is more acceptance and support when a child announces they want to be a teacher, lawyer or doctor and less so if they choose a less travelled path such as circus performer or rock star.

So what is the connection between these two days? Even though I am in the business of banking, a major part of my day is working with people and seeing to it that they are passionate and engaged in their positions here at ING DIRECT. I personally interview each new employee. Although technical skills and education are important, finding a company that you believe in, a company that you are passionate about is a more important predictor of a “new hires” success. This is the foundation for our Orange Culture and as I wrote earlier, this is what makes the people who work at ING DIRECT special which in turn makes ING DIRECT special. Our unified passion ensures that each of our 1.6 million clients feel some of the magic as we strive to exceed their expectations every day.

ING DIRECT recently was voted one of the top 100 employers in Toronto – something that I am very proud of. I hope that next year we will be farther up the list, but in the meantime, we will continue to keep our passion for our business and our customers strong. After all, as Babe Ruth said, “Never let the fear of striking out get in your way.”

Canadians have historically been a nation of savers. This is one of the reasons why our citizens and our economy have been resilient in tough times. In the past few years we have not saved as much as we should have but still well more than our American cousins. Our recent survey supports this, showing that Canadians are saving the same or even more than they did in the past. (link)

Saving, even at the lower rates of today is fundamental to a sound financial household. With saving comes freedom, peace of mind, the ability to think about the future. Canadians need to continue to save. Regardless of rate, savings are safe, guarantee that your return and that your hard earned savings will not be lost. In times when interest rates are low there are a few things you really should consider when thinking about where your savings should go.

Aside from the rate, make sure there are no fees and no minimum balances required. Whether the interest paid is $50 or $500 over a year you are still in a positive position as opposed to leaving your money in an account with fees which could eat at any gains that you make. A high interest savings account can also help you with easy access to funds during these uncertain times or to help you build a nest egg. Think of it as a virtual piggy bank and try to put a few dollars away where you can’t access them money easily and can just let it grow.