Unconventional Wisdom

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?