Business News This Week article: Toronto Financial Advisor Ed Rempel on Exponential Thinking – How Major Wealth Happens

Most people misunderstand how wealth is actually created.

Most people think about wealth linearly.

Save a bit each year.

Earn a few percent return.

Gradually build your nest egg.

But most major wealth actually happens exponentially.

For example:

$100,000 growing at 4% for 30 years becomes about $324,000.

The same $100,000 growing at 10% becomes about $1.7 million.

That’s the power of compounding.

When I work with wealthy clients, one thing I notice is that they didn’t get there by earning a slightly better return each year. They invested for growth, stayed invested for decades, and let compounding do the heavy lifting.

In this article in Business News This Week, I explain exponential thinking and how it changes the way you think about investing.

We cover:

• The difference between linear growth and exponential growth
• Why compounding can create results most investors underestimate
• The simple Rule of 72 for understanding how quickly money can double
• Why growth investing (equities) has historically created far more wealth than income investing
• How strategies like borrowing to invest can increase long-term results
• Why most investors underestimate the power of long-term compounding

Major wealth is usually quite simple.

It’s just exponential thinking and patience.

CLICK THE LINK BELOW TO READ THE FULL FEATURE HERE:

Toronto Financial Advisor Ed Rempel on Exponential Thinking – How Major Wealth Happens

In a time where many people approach investing cautiously, waiting for modest annual returns, Toronto-based financial planner and blogger Ed Rempel highlights a completely different path: thinking exponentially. He argues that creating substantial wealth isn’t about steady linear growth, getting a few percentage points each year, but about seizing opportunities for large, compounding gains.

“Many people default to conservative investments that grow slowly, but the real wealth comes when you let growth compound and give it time,” he says. He begins with a simple illustration: imagine growth not as one, two, three, four, but as one, two, four, eight, sixteen—each step doubling the last. In his view, this kind of thinking opens doors to wealth-building that go far beyond traditional returns.

Rempel draws a clear distinction between linear growth and exponential growth. Linear thinking imagines a steady size increase, say 10% per year. Exponential thinking imagines doubling—first one, then two, then four, then eight. The difference in outcome is dramatic. He points to historical examples of exponential growth: the snowball effect, where a small ball picks up more snow even faster, and the famous Moore’s Law in computing, where transistor counts double roughly every two years. “Small gains, when compounded over time, can create results that most people never expect,” Rempel notes, emphasizing the power of exponential thinking.

Rempel describes a practical tool, the “Rule of 72.” By dividing 72 by an expected annual rate of return, one can roughly calculate the number of years it takes for money to double. For instance, at 4% returns, capital doubles every 18 years. At 10%, it doubles roughly every 7 years. This contrast underpins Rempel’s message: investors aiming for modest returns may grow their nest egg, but those seeking higher growth rates, while accepting more risk, generally end up far ahead. For example, if someone invests 100,000 at 10% for 30 years, they arrive at about $1.6 million dollars, while someone at 4% ends up only around $300,000.

Rempel argues that the modern world is especially receptive to exponential gains. Technological progress, globalization, and rapidly changing markets all enable faster growth than in the past. Thus, the conventional mindset of slow, steady income simply cannot compete. He adds that many people default to conservative, income-focused investments, such as bonds or GICs, which produce linear returns and limited doubling potential. In contrast, growth-oriented portfolios, like equities, produce a much larger outcome over time.

One of the boldest parts of Rempel’s framework involves borrowing to invest. The logic is that the loan taken costs linear interest, while the investment made has exponential growth potential. Over decades, that spread can produce oversized results. As an example, he describes borrowing $100,000 at 5% for 30 years, paying about $150,000 in interest, while letting that same $100,000 grow at 10% per year, resulting in roughly $1.6 million dollars. He emphasizes that this strategy isn’t for everyone, as it hinges on staying invested through ups and downs and having proper risk tolerance.

Rempel extends the principle beyond investing. He suggests that career growth, business scale, and personal development can also follow exponential patterns when approached intentionally. People who adopt the mindset tend to recognize opportunities earlier, act with scale in mind, invest for growth rather than income, and stay committed to the long term. He points out that most of today’s self-made millionaires and billionaires didn’t simply save steadily—they invested in growth, leveraged opportunities, and stuck with their plans over decades. For average Canadians, he notes the same approach applies: over time, even a modest income invested with exponential thinking can create a far more comfortable retirement than the usual income plus-bonds route.

Rempel positions exponential thinking as a mindset shift. Instead of asking, “How much can I safely earn?” ask, “What growth rate can I reliably achieve? What opportunities can double my wealth?” He wants people to realize that linear thinking may lead to safe results, but not spectacular ones, and in a world that is accelerating quickly, safe may no longer be good enough. Ultimately, he argues that becoming financially secure and free doesn’t require extreme income or inheritance, but consistent action, a growth-oriented portfolio, and a long-term horizon. “Having a great future is not rocket science. It’s just exponential thinking, living in an exponential world, and investing for exponential growth,” says Rempel.

Rempel has worked with many wealthy people and find that most are just people over 50 who invested for growth over several decades – either in equities or a business. Just exponential thinking and patience.

For those ready to change how they approach their finances, Rempel’s perspective offers a fresh lens: don’t just aim for a little more, aim for a lot more, and give your money the runway to double, re-double, and create wealth that surprises you. 

Ed