Unconventional Wisdom

When planning for retirement, many Canadians rely on a government pension like OMERS (Ontario Municipal Employees Retirement System) as their foundation.

Do you need savings in addition to your government pension to maintain the lifestyle you want?

A buddy called me from his car and said, "I'm driving. Will I get to my destination on time?" I asked, "Where are you going and where are you now?"

It's the same with the question of whether retiring with just your pension is enough. Well it depends on your lifestyle, your goals, and whether you want the freedom to enjoy big-ticket items, like vacations or regular nice dinners.

The answer depends on your vision of retirement.

If your goal is to replace 70-80% of your working income, you'll need to fill the gap between your pension and that target with personal investments like RRSPs, TFSAs, or non-registered savings.

In my latest podcast episode, you'll see examples of people with different investment setups to help you discover what's right for you.

You'll learn:

• What is the formula to know how much your government pension will be?

• What is the rule of thumb for your pension with 30 years service?

• How much do you need to retire with the lifestyle you want?

• 10 examples of a retirement plan with a full pension.

• Do you need to invest more conservatively after you retire?

• How does a Financial Plan become the GPS for your life?

In the vast landscape of personal finance, dividend investing has carved out a significant niche.

Whether you're browsing through countless blogs or hearing investment advisors champion its benefits, it's clear that dividend investing is a popular choice, especially with the FIRE (Financial Independence, Retire Early) community.

However, a closer look reveals that almost all the advantages claimed for dividend investing are not actually true.

In this YouTube video with Barry Choi, we'll fact-check the advantages of dividend investing, explain how it is a brain fart, and introduce an alternative that is better in every way: Self-Made Dividends.

You'll learn:

• Why is dividend investing so popular today?
• What are the advantages of dividend investing?
• Why is tax on dividends a weird formula?
• Fact Check: Are the advantages of dividends true?
• What are the problems with dividend investing?
• How can you perfect dividend investing?
• What are self-made dividends?
• How are self-made dividends taxed?
• Head-to- head: Self-made dividends vs. ordinary dividends.
• Life of self-made dividend investor vs. ordinary dividend investor.
• Why are self-made dividends better than ordinary dividends in every way?
• Why are self-made dividends a perfect fit for your life?

The Smith Manoeuvre is an efficient strategy to use your home equity to invest for your future without using your cash flow, while converting your mortgage into a tax-deductible debt.

If you do the Smith Manoeuvre, understanding the new OSFI mortgage rules is crucial.

In this podcast episode with Barry Choi, I break down what the changes mean and how they impact your strategy.

You'll learn:

• What is the Smith Manoeuvre?
• What are the new OSFI mortgage rules?
• How will they affect the Smith Manoeuvre?
• What is the formula in the rules?
• Examples of the effect.
• Effect on monthly investment.
• Best & worst-case examples.
• How do you manage the process?
• How to minimize or eliminate the effect.
• Effect on Smith Manoeuvre vs. TFSA decision?

With the Canadian Financial Summit coming up at the end of October, I wanted to share over the next few weeks content that Summit attendees had access to last year.

When you register you get access to talks like these, plus a myriad of other speakers who are some of Canada's top financial experts.

I'll be promoting the Summit and giving away free tickets too!

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When it comes to retirement, it's crucial to get the big picture right before diving into the details.

Setting up your retirement income involves more than just ticking boxes; it requires a strategic approach to ensure you're financially secure throughout your retirement years.

In this podcast episode, Barry Choi interviewed me about designing your retirement income effectively.

You'll learn:

• What are the 4 steps to design your retirement income?
• What's Important about Money to You?
• How do you know when you have reached "Financial Independence"?
• What is "Your Number"?
• What are the key concepts to understand retirement income?
• How much can you reliably withdraw from your investments for life?
• What are the 3 retirement income design strategies? How do you decide which is best for you?
• How do you design your retirement income? How much from which source?
• Overview or when to start pensions, RRIF, CPP, OAS & other investments.
• Should you defer or commute your pension?
• Should you worry about high tax on your estate?

Most people struggle with money.

It might feel like you're the only one who doesn't have it all figured out, but trust me, you're not alone.

Over the last two months, I've had countless conversations with individuals just like you who are grappling with various financial concerns.

In my latest podcast episode, I share 25 common worries and questions that I have been asked just in the last couple months, plus you'll learn the four things a financial plan can do for you.

Here are three key insights that I believe are essential for navigating the rest of the year and beyond.

These insights are grounded in the principles that have guided our successful financial planning and investment strategies.

The three key areas: Some timeless truths that guide our financial planning, a few observations on the markets so far this year, and an update on what we're doing in our practice to keep you on track toward your financial goals.

In my latest podcast episode you'll learn:

• Timeless truths for financial success
• General principles of our investment strategy
• Market commentary for the first half of 2024
• Current observations and insights
• Updates on our practice

Many people are saving for their kids' future education costs in an RESP.

For some parents, it is a higher priority and they want to be able to maximize the benefits of an RESP - not just contribute the standard $2,500/year for each child.

In my latest podcast episode I talk about the five hacks to maximize your child's RESP.

You'll learn:

• How much might a 4-year degree cost in 18 years?

• Is it good for your child to pay for their education?

• What asset allocation is best to maximize your child's RESP?

• What are the RESP contribution rules?

• How do most parents contribute to their child's RESP?

• What are the top 5 hacks to maximize your child's RESP?

• What are the issues with using an In Trust For (ITF) account?

• Should you use a Family RESP or individual RESP?

The Smith Manoeuvre has long been a popular strategy for Canadian homeowners seeking to convert their mortgage debt into tax-deductible investment debt.

However, recent tax and regulatory changes have impacted the efficacy of the Smith Manoeuvre, and further changes from the Liberal government could pose additional challenges.

In my latest video I give an analysis of the current landscape and potential future threats to this investment strategy.

You'll learn about:

• The recent changes impacting the Smith Manoeuvre, including OSFI rules and higher capital gains inclusion rates.
• What potential Liberal policy changes could limit interest rate deductions or increase investment taxes.
• A historical context of the 19 Liberal tax increases and their effects on investors.
• Motivations behind the Liberal government's continuous tax increases, including political strategy and economic philosophy.
• Legal protections and practical reasons why a direct attack on the Smith Manoeuvre is unlikely.
• How much of the long-term benefit of the Smith Manoeuvre is tax savings and how much is investment-related?
• The resilience of the Smith Manoeuvre as an effective retirement strategy even in the face of regulatory and tax changes.

Have you ever wondered how long you might live?

Understanding life expectancy is crucial for planning a secure and fulfilling future.

In my latest podcast episode I explore the dramatic changes in life expectancy over the past century, why it's expected to continue increasing, and how this impacts your retirement planning.

You'll learn:

• Has life expectancy actually doubled since 1900?
• How fast life expectancy is increasing.
• Why life expectancy is expected to increase.
• How long you can expect to live from today.
• How long you should expect to be retired.
• What age should you plan for to be confident you will never run out of money.
• Why is it important to invest for growth AFTER you retire.
• What you need for an awesome retirement.

Deciding between a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP) can be one of the most challenging financial decisions you'll face.

Each has its benefits, and the right choice depends on your unique financial situation.

In this post, I'll guide you through understanding the factors that determine whether a TFSA or RRSP is better for you and how a financial plan can provide you with the precise answer.

In my latest video I talk about:

• The secret to minimizing your lifetime tax.
• Understanding how tax brackets differ before and after retirement.
• Specific examples when a TFSA is better and when an RRSP is better.
• When non-registered investments might be better than an RRSP.
• Common errors in tax planning, like focusing on current-year tax savings instead of lifetime tax savings.
• The impact of government income program clawbacks on your tax bracket in retirement.
• The importance of knowing your future taxable income to make informed decisions.
• Strategies for planning your retirement income to stay in lower tax brackets.
• The benefits of combining TFSAs, RRSPs, and non-registered investments for tax-efficient retirement planning.
• The role of a financial plan in optimizing your RRSP and TFSA contributions and withdrawals.