Unconventional Wisdom

Why do so many Canadians struggle to achieve financial freedom, even with a solid financial plan?

Why do they retire with less than they hoped for, despite diligently saving and investing?

The answer often boils down to two things: suboptimal investments and a misguided focus on risk.

In my latest podcast episode, we'll uncover why good investment performance is essential for your financial success and show you how to take control of your portfolio.

We'll also address common misconceptions about risk in the investment industry and uncover the secrets to thinking like a successful investor.

You'll learn:

• Why is good performance important for your life?

• What rate of return do you need to become financially independent?

• What are the 4 performance drags that reduce investment returns?

• What is the Asset Allocation Loss Ratio (AALR)?

• Why is it easy to outperform financial advisors?

• What is wrong with the investment industry definition of "risk"?

• Why is it easy to outperform robo-advisors?

• Why is it easy to outperform index investors?

• How can you learn to think properly about investing?

• What are the secrets to outperforming?

With its quirky name, the Smith Manoeuvre might sound unconventional, but it's a strategy that truly works—when done by the right people, in the right way, over the long term.

From crafting over 1,000 professional Financial Plans, I've seen firsthand how the Smith Manoeuvre can transform your finances, helping Canadians use their home equity to invest for their future without impacting their cash flow.

When included as part of a comprehensive financial plan, this strategy can empower you to achieve the life you've always envisioned.

But optimizing the Smith Manoeuvre requires more than just the basics—it's about mastering the practical details and understanding how to maximize its benefits.

In my latest podcast episode you'll learn:

• What is the right reason to do the Smith Manoeuvre?

• How do you know if you are the right person for the Smith Manoeuvre?

• What is the right mortgage?

• How can you keep it 100% tax deductible?

• Which of the 8 Smith Manoeuvre strategies is right for you?

• Why is it critical that the Smith Manoeuvre is a long-term strategy?

• What is the right mindset to minimize the risk & maximize the benefits?

For years, conventional wisdom has preached the benefits of diversifying between stocks & bonds and gradually shifting to safer investments as we age.

But what if these widely accepted strategies are fundamentally flawed?

A newly published, high-quality study is flipping the script on traditional investment advice, making a compelling case for a 100% equity strategy throughout life.

This research, backed by robust data from 39 developed countries and spanning long-term investment horizons, challenges two key conventional wisdoms:

1. That savers should diversify between stocks and bonds.

2. That young people should invest more heavily in stocks than when they are older.

Instead, the study reveals that an all-equity portfolio—with a notable tilt toward international stocks—outperforms traditional stock-bond strategies in building wealth, ensuring reliable retirement income, and preserving capital.

In my latest podcast episode you'll discover:

• Is this new study a high-quality study?

• What does the study prove?

• What is the effective way to diversify?

• In what 2 ways is diversifying with international stocks better than with bonds?

• Why should investors keep the same allocation to stocks as they get older?

• Is the all-equity strategy safe?

• Should we actually invest 67% into international stocks?

• What studies already on my blog agree with this study?

I talk with people all the time who have an ETF or mutual fund that pays a fixed monthly amount. In most cases, they misunderstand it.

Most think they are receiving regular income—but chances are, it's usually a brain fart.

Many investors misunderstand how these monthly pay investments work.

From covered call ETFs and dividend funds to monthly income funds, mortgage funds, T8/T6 mutual funds, and REITs, the mechanics can be confusing—and the implications even more so.

In my latest podcast episode you'll learn:

• Why are monthly pay ETFs and funds a brain fart?

• How do fixed monthly pay ETFs or funds work?

• Why is a monthly distribution not part of your rate of return?

• What is the difference between a distribution and a dividend?

• Why is a monthly distribution not new money?

• Why does a monthly distribution = Selling shares?

• Why does a reinvested distribution = No distribution?

• Why do covered call funds usually have lower returns but higher tax?

• Why are monthly pay ETFs/funds a problem for retirement income?

• Why are monthly pay ETFs/funds a problem for leverage investors?

• How can we get out of the Brain Fart?

• How can you perfect monthly pay funds?

• What are self-made dividends?

• Why are self-made dividends a perfect fit for your life?

Ever wondered how you can get the money out of your RRSP with a minimum of tax?

RRSP/RRIF Meltdown Strategies can allow you to withdraw from your RRSP or RRIF and have very little income show on your tax return.

However, there are some tricky complications, and these strategies are not for everyone.

In my latest podcast episode you'll learn:

• How does the RRSP/RRIF meltdown strategy help you withdraw from your RRSP with minimum tax?

• Why should it be called the RRIF Meltdown Strategy, not the RRSP Meltdown Strategy?

• Why are self-made dividends the secret to an effective RRIF Meltdown Strategy?

• What are the 4 tricky complications?

• Why does the traditional RRIF Meltdown not melt your RRIF down?

• What is the problem with starting it before you retire?

• What is the problem with starting it when you retire?

• What are the 3 main RRIF Meltdown Strategies?

• What are the 6 steps to implementing the RRSP/RRIF Meltdown Strategy effectively?

In a recent podcast episode, I talked about who the poor & wealthy are and how did they get there.

Today, I'm diving deeper into one crucial aspect: how the wealthy became wealthy.

Can their strategies work for you?

Over the years, I've seen the full financial picture of thousands of Canadians and read countless studies on wealth building.

While my clients are generally higher-income, growth-focused individuals who work with a financial plan, I've also spoken to countless others—through this blog, in person, and within my network of wealthy individuals.

These insights have given me a clear understanding of who achieves financial success and the steps they took to get there.

In my latest podcast episode you'll learn:

• How much do you need to be "wealthy"?

• What types of people have high net worth?

• What is a "productive growth asset"?

• Do you have to borrow to invest to become wealthy?

• What does the Lifecycle Investing study tell us about growing wealth?

• How can you copy their methods and become wealthy?

I often get asked about Lifecycle Investing and how to implement it.

If you're under 40 and saving to achieve financial independence, this might be the most powerful strategy you'll ever learn.

Lifecycle Investing has proven itself consistently over the last 150 years, increasing portfolios at retirement by an average of 63%.

It has worked 100% of the time, and its success lies in addressing one of your biggest financial risks: "Last Decade Risk."

However, it's not for everyone.

This strategy often involves borrowing to invest and maintaining a high equity allocation during certain phases of your life.

Think of it as a concept rather than something to execute literally. Understanding it can completely transform how you manage your money.

Get your Financial Plan first.

Lifecycle Investing involves thinking through the best way for you to do it over the next few decades. Creating your Financial Plan is an interactive process to help you think through all your various life options.

To understand Lifecycle Investing, first you need to understand what is wrong with the conventional method of "bit-by-bit" saving. An example is the best way to understand it.

In my latest podcast episode you'll learn:

• What is Lifecycle Investing?

• Why has it increased portfolios 100% of the time over the last 150 years by an average of 63%?

• What is "Last Decade Risk"?

• How does a bad decade just before retirement impact your savings?

• What's wrong with conventional "bit-by-bit" saving?

• Why do returns before age 45 have so little impact on your life?

• How does Lifecycle Investing finance your retirement like a mortgage finances your home?

• What does it mean to diversify across time?

• What's an example of Lifecycle Investing compared to traditional saving?

• How do you adapt your asset allocation for Lifecycle Investing?

• How can you implement it?

• How can it work for those who want maximum growth?

• Why is a financial plan crucial before starting Lifecycle Investing?

As a financial planner, I've had a unique view into the full financial picture of thousands of Canadians and have read countless studies.

My experience spans clients of varying financial backgrounds, as well as countless conversations with readers of my blog, friends, and acquaintances.

Although our clients may not represent the entire population—they tend to have higher incomes, are growth-focused, and always work with a clear plan—my broad exposure has helped me form a solid understanding of what wealth really is and the common ways people achieve it.

In my latest podcast episode I'll cover some key questions that get to the heart of wealth.

You'll learn:

• How much do you need to be "wealthy"?

• What do media stories get wrong about the wealthy and the poor?

• Why are people with high incomes different from people with high net worth?

• Is a high income important to become wealthy?

• Do most wealthy people inherit their wealth, or do they grow it themselves?

• What types of people have high net worth?

• What does the Lifecycle Investing study tell us about growing wealth?

• How can you become wealthy?

The online Canadian Financial Summit is coming up the week of October 25-27.

It's the #1 personal finance event of the year.

As a reader of the Unconventional Wisdom blog, here are your FREE passes for a limited time.

With these FREE passes, you can watch all the talks for 48 hours.

I'll be one of the speakers again this year with three talks (see below), and I'll be joined by over 35 other Canadian personal finance and investing experts such as Rob Carrick from the Globe & Mail and Ellen Roseman former Toronto Star columnist.

Where else will you find all these experts in one place?

With your FREE pass, each morning, all the talks for the day will be available to you for 2 days. If you want to access them forever, you can purchase an All Access Pass for $99.

My three talks are:

Friday, October 25:

7 Best Ideas to Optimize the Smith Manoeuvre The Smith Manoeuvre allows you to convert interest on your mortgage to tax-deductible over time and save for your retirement without using your cash flow, but not many people know about it. Ed Rempel is a fee-for-service financial planner and tax accountant with the best ideas on how to optimize the Smith Manoeuvre.

Saturday, October 26:

How to Easily Outperform Financial Advisors, Robo-Advisors & Index Investors Many Canadians use financial advisors, robo advisors or invest on their own with index funds. However, there might be an easy way to outperform them all. Ed Rempel is a fee-for-service financial planner and tax accountant with how this is possible.

Sunday, October 27:

Retiring Right Before, or during, a recession – Debunking Sequence of Returns Risk

Many older Canadians fear retiring right before a recession. Ed Rempel, a fee-for-service financial planner and tax accountant who will discuss how you can create a reliable and maximum retirement income for yourself for your golden years.

Some more info about the talks:

• Watch my 3 talks any time in a 2-day period for FREE.

• It's 100% online so you can stream all the talks right from your computer/tablet/phone.

• You don't need to go anywhere or buy anything.

• You can forward this to any of your friends to give them a FREE ticket.

See you at the Summit!

Here is a LINK to get your passes.

Ed

Tax brackets for parents and seniors are way different than you think.

This might be a real eye opener for some people because I think a lot of people that do some basic tax planning are doing it all wrong.

In my latest podcast episode I'm going to give you a tax planning made easy using tax brackets.

I'm going to show you how, some basics of tax brackets, and briefly how tax planning is done, so you can get the concept.

Then we're going to talk about why tax brackets for parents and seniors are way different than you think - and how this completely changes tax planning.

You'll learn:

• Tax planning made easy using tax brackets.

• Why are tax brackets for parents way different?

• Why is the CCB Clawback a game changer for your tax planning?

• What are the actual effective tax brackets for parents?

• Why do parents benefit more from RRSP contributions than single people?

• Why are tax brackets for seniors way different?

• What are the three main clawbacks on seniors?

• What are the actual effective tax brackets for seniors?

• How can you plan for your retirement income to be taxed at only 20%?

• When is a TFSA and RRSP better for you?

• How does a financial plan become the GPS for your life?