Explorez tous les épisodes du podcast Unconventional Wisdom

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. 

You may have heard that we just had a new budget here in Canada, and increased the taxes on capital gains. 

Canadians with a rental property, cottage or investments and their tax advisors are scrambling to figure out what to do before the deadline of June 25, 2024.

Here are the questions we’ll cover in this latest podcast episode:

What is the new higher capital gains tax?

• Who is affected?
• Why is it mainly a real estate tax?
• How to avoid or minimize the higher capital gains tax.
• Is investing inside your corporation still worthwhile?
• Will the higher exemption for small business help?
• Are rental properties or cottages still profitable?
• Why are only 50% or 67% of capital gains taxed, instead of all gains?
• 3 nasty aspects of the new tax.
• Why do they say only 0.13% of Canadians are affected?
• Will this hurt our economy?

If there is one podcast episode you should listen to of mine – it’s this one.

It is my underlying outlook on life and financial planning. This is the outlook that leads to financial success.

In my latest podcast, you’ll learn about the differences between a fear-based mindset and a growth mindset, and how wealthy people look at the world.

Listen to find out:

• Why you need a growth mindset.

• How a growth mindset benefits you.

• How fear-based people mess themselves up financially.

• The risk of conservative investments in different retirement plans.

• What people with a growth mindset do.

• 7 key traits of people with a growth mindset.

With so much advice on retirement, sometimes it’s hard to know what to do.

How do you put all the details together to get the retirement income you want with the minimum lifetime tax?

Quite a few people asked me questions about retirement income in response to my last video.

In my latest podcast episode, you’re going to get an overview where you’ll learn the “Big Picture” thinking into designing your whole retirement income in one shot!

This is a “must listen” to understand the key concepts when it comes to this topic.

Listen to find out:

• The “Big Picture” of how to design your retirement income.

• How do you know when you’ve reached financial independence?

• How much can you withdraw from your investments and have them last for life?

• How much do you take from each income source? 

• How do you design your retirement income?

• What are the key concepts to understand about retirement income?

• What are the three retirement income design strategies?

• How do you decide which strategy is best for you?

• An overview of when to start RIF, CPP, OAS and pensions, etc.

• What do you do with Smith Manoeuvre or leveraged investments? 

• Should you commute your pension?

• Should you worry about high tax on your estate?

Is your mortgage tax deductible?

You know the basics about the Smith Manoeuvre. This podcast episode is about the practical issues you may run into and how to maximize the benefits.

We are Canada’s Smith Manoeuvre experts and have helped thousands of families implement it.

Many “Smith Manoeuvre experts” just offer you a mortgage and leave you to implement it.

We are the fee-for-service financial planners that implement it and work with you over the years.

We know from experience exactly how to maximize the benefits:

• Why do the Smith Manoeuvre? Do it for the right reason.

• Comparisons of people’s retirement plan with or without the Smith Manoeuvre.

• My recommended readvanceable mortgages (and the banks to get them from).

• How to keep your credit line 100% tax-deductible.

• The 8 Smith Manoeuvre strategies. Which is right for you?

• Have the right mindset to avoid the risks.

In this week’s podcast I’m interviewed by Kornel Szrejber, founder of the Build Wealth Canada podcast and website, and host of the Canadian Financial Summit, the #1 personal finance online event of the year.

Kornel runs the #1 personal finance podcast in Canada & the Canadian Financial Summit. He has been getting advice from me for awhile when it comes to financial planning and tax-related questions.

We focus on questions related to my practice, which I think you’ll find helpful, if you’re curious about working with a financial planner.

Listen to find out:

• How does getting a Financial Plan help you?

• Why you need more money than you think for retirement. 

• Why work with Ed Rempel & his team vs other financial planners?

• What methods & strategies Ed provides that other advisors & robo-advisors don’t.

• How can you reach your desired retirement more easily?

• If someone is thinking of getting a Financial Plan but not sure what to do, how can they find out?

• What is it like to work with Ed’s team as a Full Service client?

• How can you find out more about working with Ed and his team? 

My name is Ed Rempel CPA, CMA, CFP. The main Wise Guy on this podcast. I am a financial blogger, fee-for-service financial planner and tax accountant with a ton of real life financial planning experience. I love sharing my insights from experience.

Unconventional Wisdom is the #1 blog in Canada for a full service financial planner for a reason. It’s not the usual yada yada. It’s unbiased insights from experience on what really works. What really works is rarely conventional. Here you will learn how to achieve security and freedom.

Welcome to the Unconventional Podcast with Ed Rempel.

You may be thinking – what difference can I make in the world?

As a financial planner I talk a lot about money, however, it’s not really about the money itself, but what it does for your life – how to live well, retire comfortably, and give back.

In my latest podcast episode, I give you some ideas to help you choose causes that matter to you, as well as talking about financial & tax planning for donating effectively.

Listen to find out:

• How do most people donate?
• What is a Donation Plan & how does it benefit you?
• How to donate tax-efficiently.
• Donation tax credit by Province.
• Advanced donation tax strategies.
• What is a “Donor-Advised Fund”? 
• How do you decide where to donate?
• How do billionaires donate?
• What are the most effective charities or causes?
• How do we increase the prosperity of all humans? 

It’s easy to outperform financial advisors.

Why?

Conventional wisdom is they underperform because of fees, but there is a bigger reason.

They don’t even try to outperform. They try for: “Reasonable return with less risk”.

Financial advisors are mainly salespeople, not financial planners. 

They are more likely to lose a client because of a 30% 1-year market decline than 10 years of lagging the index. So, they focus on market fluctuations, not your life goals.

This makes them do the “4 performance drags” that typically reduce their returns by at least 3%/year, which is more than their fees.

In my latest podcast episode (under 4 minutes!), you’ll learn the four performance drags and how to get the maximum reliable long-term return. 

You’ll also discover exactly how to EASILY outperform financial advisors.

Divorce is never financially smart!

As a financial planner, I don’t recommend divorce. It’s bad for your finances!

However, you can go through it in the most financially smart way – to leave both of you in the best possible position.

We have seen quite a few people go through divorce.

We’ve seen some total disasters, fighting for years through lawyers with monstrous legal costs.

• A wife hiring one lawyer after another for years to keep going after her ex.

• A dentist declaring bankruptcy to avoid paying alimony.

We have helped clients go through it amicably while talking & agreeing on what to do.

• We can help identify the financially best way to divide assets.

• We can show how to minimize or avoid tax when dividing assets. Paying tax means you both get less.

I am a financial planner – not a lawyer. My insights here are based on experience about how to be as financially smart as possible.

In my latest podcast episode you’ll learn:

• Why an amicable divorce is better.
• What to be aware of with lawyers.
• Working effectively with your lawyer.
• How to divide your assets the most effective way.
• Should you keep the house?
• What happens to the Smith Manoeuvre in a divorce?
• Should you split a pension?
• What options do you have with spousal & child support?
• What studies say about life after divorce.

Many people today feel they have no choice but to be a tenant, however, what if you actually choose this? 

You can choose to be a tenant forever and it can be a great life!

I’m going to introduce you to the concept of “Tenant Freedom,” to show you how great of a life it can be.

Watch my latest podcast episode to find out:

• Advantages & disadvantages of owning vs. renting your home

• What you need to buy a home.

• How to be much wealthier as a tenant.

• 5 steps to a great life with Tenant Freedom.

• What is the “Tenant’s RRSP”?

• Do tenants have a Smith Manoeuvre option?

• The growth mindset for Tenant Freedom.

Gold goes down on inflation. 

Why doesn’t the industry know this?

This is one of the most common and wrong conventional wisdoms.

The conventional wisdom is that Gold protects you from inflation, so if we have high inflation Gold should be up. It should maintain its value.

The problem is – this isn’t true and hasn’t been true for decades.

So why does the investment industry keep promoting this idea?

In my latest podcast episode I give you details on why you may have been told to invest in Gold, and what I suggest instead.

Listen to learn:

• How knowing about Gold can help with your investment portfolio.
• The correlation between Gold vs. Inflation.
• What do interest rates have to do with Gold? 
• Why doesn’t the investment industry know this? 
• How to easily outperform the investment industry.
• Why you need an interactive financial plan.
• What Warren Buffett says about Gold.
• Why having Gold is similar to money in a Savings Account.

20 years ago I took the most fascinating investment course, and by far the most in-depth.

The course made me a “Certified Hedge Fund Specialist” (CHFS). I loved it so much I received the top mark in Canada.

From the course and meeting with hedge fund people, I’ve learned the ins and outs of the Hedge Fund World, which to many, seems like a secret club.

In my latest podcast episode, you’ll get a sense of what this world is like, insight into the categories of hedge funds and major hedge fund stories in movies.

Should you invest in a hedge fund?

Listen to the podcast to find out:

• What is a hedge fund?

• 12 categories of hedge fund strategies.

• Pros & cons of hedge funds vs. mutual funds & ETFs.

• What is an option?

• Movies about hedge fund managers.

• Why do our clients have a hedge fund?

• Should you invest in a hedge fund?

• Are hedge funds more risky or less risky than mutual funds & ETFs?

• Stories behind major hedge fund blow-ups.

I was honoured to be invited by Ellen Roseman to speak with her Investment Club about the 6 key lessons I have learned as a fee-for-service financial planner. 

They have had investment guest speakers, but never someone just talking about financial planning.

Ellen Roseman is a journalist who sticks up for ordinary Canadians.

Her personal finance & consumer columns appeared in the Toronto Star for 20 years, she was the Star’s business editor, a columnist for the Globe and Mail, associate managing editor of the Globe’s Report on Business, author of 4 books, has a podcast, and she’s been teaching courses on investing and personal finance at the University of Toronto.

My views are common sense based on experience writing over 1,000 financial plans and making them work for the lives of our clients.

However, they are unconventional compared to the investment industry’s normal practices.

In this podcast episode you'll learn:

• Why dividend investing is a brain fart.

• Why almost nobody can retire comfortably with a balanced or conservative portfolio.

• Why risk tolerance is a learned skill.

• How marginal tax brackets, including clawbacks of government programs, can change your financial plan completely.

• Why taking advantage of leveraged investing, such as the Smith Manoeuvre, can be the best growth strategy for the right people done the right way over the long term.

• The importance of having a financial plan, and why it’s the road map to the life you want.

Do you own a business?

If yes, then you’ll love my latest podcast episode. I cover the few things that you really need to know about corporations.

You’ll learn:

• When should you incorporate.

• If you should get a holding company.

• Whether you should pay yourself a salary or dividend.

• Common mistakes by business owners.

• If you should invest in a corporation, RRSP or TFSA.

The most common question I get asked about the Canada Pension Plan (CPP) is: “Is it smart to take my CPP early?”

And what I say is - it depends, as the answer is contingent on five main factors.

1. How long do you expect to live?

2. How do you invest?

3. What will inflation be? 

4. Are you still working?

5. When do you need the money?

In my latest podcast episode I get into more details on how to think about these questions and I give you examples from client case studies.

The answer is complex and CPP is only one piece of your retirement income. The best advice is to look at this as part of a professional retirement plan.

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

What will it take for you to become financially free? 

To have enough money that you never have to work again?

This latest podcast episode is my insight into the few key ideas you really need to know. 

It’s an overview to give you the big picture of what really works.

Some of these ideas are not conventional wisdom. They are the ideas that give you results over time.

I learned these 6 steps from working with more than 1,000 families to create detailed, personal plans for them to become financially independent. 

I am also a fee-for-service financial planner, tax accountant and expert in a few of the most effective strategies that might help you get there.

This podcast is the best 50 minutes of financial education.

Some key things you’ll learn:

• What is financial independence?

• Why you need to understand your inner motivation.

• Why it’s important to get a professional, written Financial Plan.

• What exactly is “effective investing”.

• What are effective investing strategies?

• The best way to work with a planning-focused advisor.
  

It’s easy to outperform robo-advisors.

Why?

Because they don’t even try to outperform, they try for reasonable returns with less risk.

You would think robo-advisors would just invest in a few broad indexes, but often they don’t. And they require you to invest in bonds no matter how high your risk tolerance.

Robo-advisors are big investment companies, not financial planners. They’re more likely to lose a client because of a 30% one year decline, than 10 years of lagging the index, so they focus on market fluctuations and not your life goals.  

This post is about performance. How to get the maximum reliable long-term return. It is not about risk-adjusted returns. It’s about getting a high enough return to achieve your life goals in your Financial Plan.

In my latest podcast episode (under 4 minutes!), you’ll learn exactly how to EASILY outperform robo-advisors.

The average Canadian wastes $22,000 after tax during their life for every $100,000 of their mortgage and takes 38 months longer to pay it off, according to a study by Moshe Milevsky.

This is because of taking 5-year fixed mortgages instead of variable.

They are marketed as being safe and a good protection against a sharp rise in interest rates. 

The reality, though, is that they are nearly always a huge waste of money, because the interest rate is nearly always higher and you lose your negotiating power for five long years.

From 1975-2019, 1-year fixed mortgages saved money 100% of the time. 5-year fixed will probably save money for 5 years starting 2020-22, but it may be decades until next time.

That is why we call it the “5-Year Fixed Mortgage Trap”.

Listen to my latest podcast episode to find out:

• Why people take 5-year mortgages.

• What you should do instead.

• Why being aware of your negotiating power is key.

Smith Manoeuvre or Smith Maneuver?

Why the two spellings and which is correct?

This strategy (which I’m most known for), helps Canadian homeowners make their mortgages tax deductible in a simple way.

What’s the proper spelling?

Who pioneered this legal strategy?

Does it work in Quebec?

Can you use it if you live in the United States?

All these questions you’ll get answered in my latest podcast episode.

Listen to find out:

• Why the Smith Manoeuvre is often misspelled.

• How the Smith Manoeuvre works in Quebec.

• The person who pioneered the Smith Manoeuvre.

• Learn about the history of the Smith Manoeuvre.

• Why I recommend this strategy to so many of my clients.

Asset Allocation Loss Ratio (AALR) – What Is It & How Does It Help You?

When you go to any investment firm in Canada, they require you to sign a risk tolerance questionnaire to prevent you from investing too aggressively.

However there are two important questions:

1. What prevents you from investing too conservatively?

2. Can you achieve your life goals with more conservative investments?

These are critical questions, since almost nobody can retire comfortably with a typical balanced portfolio with 40-50% in bonds.

This is where the AALR comes in. With any financial decision, it’s important to understand how it affects your life – both the risk & the return.

The Asset Allocation Loss Ratio (AALR) estimates the effect of a more conservative portfolio or suboptimal asset allocation on your long-term investment returns.

In my latest podcast episode I give you examples of case studies, as well as the formula for asset allocation loss ratio, so you can determine exactly how you should invest for your future.

I recently did an interview with Bryn Griffiths from 630 CHED radio in Edmonton about how different things can affect people's credit ratings and how to avoid making common mistakes.

It’s a quick, but important podcast episode, because even a $10 missed credit card bill can cost you hundreds of dollars in interest. Plus how to start or build your credit rating.

Enjoy!

Ed

Remember the show “Who wants to be a millionaire?” 

Are you the kind of person that wants to build some serious wealth? 

Live an exceptional life? Be financially free?

I don’t mean just a comfortable amount. I mean a lot – like being a multi-millionaire.

The truth is, average people can become very wealthy just by managing their money for maximum growth.

In my latest podcast episode, I introduce you to The “Rempel Maximum” and the 5 steps to becoming a multi-millionaire.

This is a process to build as much wealth as you can in a solid, reliable way. 

The Rempel Maximum is the quest to find the methods most likely to build wealth reliably. 

It is best to think of it as a concept – a set of tools, not a recipe. 

Do none of it, a bit, or the amount you are comfortable with and that will give you the life you want.

Enjoy!

Ed

It is easy to outperform index investors.

Why?

Because they don’t really try to get index returns, they try for reasonable returns with less risk.

This makes them use “performance drags” that typically reduce their returns by at least 1-3%/year.

In my latest podcast episode (which is under 3 minutes!), you’ll learn exactly how to EASILY outperform index investors.

Enjoy!

Ed

How should you invest your money?

If you don’t invest wisely, it will be hard to fund your future.

There are always new areas you can put your money into, but are they worthwhile long-term?

In my latest podcast episode, I look at all the possible areas to invest your money and fit them into 4 categories: gambling, speculating, saving, and investing.

Knowing the expected return & risk for each will help you decide what’s the most reliable for you to be confident in your future.

I specifically talk about:

• The difference between gambling, speculating, saving & investing.
• What are meme stocks, NFTs, cryptocurrencies?
• Meme stocks, NFTs, cryptocurrencies, lotteries, futures, options, rental properties, bonds, GICs, dividend stocks, equities. Where do they all fit?
• How high do long-term returns need to be to be considered an investment?
• Odds of making money in the stock market with day trading and short-term investing.
• How the stock market can be gambling, speculating, saving or investing.
• How to be confident you are investing effectively.

Financial freedom is what we all want.

We talk to people about their finances all the time and most people just want to know that their money is there, and they can live their life the way they want, but very few Canadians actually get there. Why?

Most Canadians are not financially secure because of sub-optimal investments and focusing on the wrong risk.

In my latest podcast episode I’m going to show you how to outperform all these methods:

• How to easily outperform financial advisors, robo-advisors, and index investors.
• 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?

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?

When you’re planning for your future you need to have a sound investment strategy, that gives you confidence that you’ll eventually have the retirement that you’ll want.

The best way to understand this is with a hockey analogy.

Would it be more effective for me to go on the ice and stickhandle and shoot, or for me to pick an NHL superstar to play for me?

I learned that it is much more effective to study & hire the top investment managers, than to try to be one. The stock market is much more complex than people think it is.

Our process is hiring the world’s best investors to invest for us. We call them “All Star Fund Managers”. We think this gives our clients the best chance to achieve their goals.

In my latest podcast episode you’ll learn:

• What I mean when I say the term: “All Star Fund Manager”.
• Characteristics of an “All Star Fund Manager”.
• Why you want to pick a fund manager who invests very differently from the index.
• Why it’s important to look at quality when it comes to paying for fund managers.
• Why Ed Rempel invests with the same fund managers that we recommend for our clients.

Do you feel financially secure? 

What would it take for you to build a huge nest egg to become financially secure?

Conventional wisdom says it’s mostly about investing better. It suggests you should focus on getting a higher return or lower fees.

My experience, though, is surprisingly completely different. I have seen the full finances of thousands of people. The ones focused on investing usually had small portfolios. I call these people “performance maniacs”. Typical portfolios I have seen are usually under $200,000.

By comparison, when I meet people much less interested in investing with mutual fund portfolios and working with advisors, they tend to have much larger portfolios of $300,000 to $1 million and often much larger.

A comprehensive study by CIRANO showed people with advisors had 4.2 times more financial assets - after adjusting for age, income, gender and almost 50 other factors.

In my latest podcast episode you’ll learn:

• 2 things you must focus on to achieve financial security.
• 4 key positive traits of people who work with financial advisors.
• Why financial planning – not investing – is the key to financial security.
• Why having a retirement plan is a huge factor in both achieving financial security and having a large nest egg. 
• 9 benefits of having a financial plan.

The RRSP Gross-up Strategy is a relatively simple concept that can help you contribute 40-70% more to your RRSP, without using any more of your cash.

Do this every year and you can retire with 40-70% higher income for life!

The last podcast was quite detailed, while this episode is a quick and concise overview of the strategy.

In my latest podcast episode you’ll learn:

• The 3 tax refund options.
• What is the RRSP Gross-up Strategy?
• What you need to know before you start this strategy (facts & figures).
• 6 factors for your optimal RRSP contribution.
• The RRSP Gross-up Formula.
• The RRSP Catch-up Strategy.
• An RRSP Catch-up Strategy example.
• The RRSP Catch-up Strategy result.
• RRSP Catch-up + RRSP Gross-up.

Wouldn’t it be great if you could save a lot more for your future without affecting your day-to-day cash flow?

One of the main things you learn from your retirement plan is that you need a lot more to retire comfortably than you may have thought. 

But with all the day-to-day expenses, it can be difficult to find the money to contribute as much as you would like to your RRSP.

The RRSP gross-up strategy is a simple strategy that can be a game-changer for you. It can enable you to easily contribute 40-70% more to your RRSP – every year.

The strategy works if you already expect a tax refund. If you contribute monthly to your RRSP or have various tax deductions or credits, you probably expect a tax refund.

The RRSP Gross-up Strategy can be an even bigger life-changer if you have lots of RRSP room. Canadians have nearly $1 trillion available contribution room.

It is smart to gross-up every RRSP contribution you make.

In my latest podcast episode you’ll learn:

• Why contribute to your RRSP?
• What is the optimal amount for you to contribute?
• How contributing 40-70% more can be life changing.
• What is the RRSP Gross-up Strategy?
• Real life examples.
• RRSP Gross-up formula.
• How to estimate your tax refund accurately.
• What is the RRSP Catch-up Strategy?
• How to combine the RRSP Gross-up + RRSP Catch-up Strategies.

Are you a parent?

If yes - you’re probably paying a lot more tax.

Parents are often in higher tax brackets than non parents.

This means your planning must be diligently looked at, as it can affect your RRSPs, deductions, and more.

I’ve talked about this topic before on my blog, but this is the updated version.

In my latest podcast episode you’ll learn:

• Why are effective tax rates higher for parents?
• Does the higher tax bracket for parents really start at only $17,000?
• How does the Canada Child Benefit (CCB) work?
• Why is the CCB clawback a game-changer for your tax planning?
• What are the benefits and how much is the clawback?
• What tax rates apply for parents?
• Why do parents benefit more from RRSP contributions?
• Why do parents benefit more from the Smith Manoeuvre?
• Why should parents avoid dividend-paying stocks?
• How does staying home with your kids affect your tax?

If you’re investing in equities, you may be using various investment data software like Morningstar.

The problem?

Investment data often gets misused.

This is because you may be looking at short-term stats and ratings from only the last 1-5 years.

It takes a lot of effort looking at investment stats, but most people who do this incorrectly, don’t get good returns. 

In my latest podcast episode, you’ll learn how to look at long-term data and how to use investment data effectively.

• Why do good investments have bad stats & ratings sometimes?
• Why do investors that use investment stats & ratings usually have lower returns?
• How do investment stats affect your behaviour?
• How the Dunning-Kruger effect happens when investing.
• How can you use investment data effectively?
• Common investing mistakes to avoid.
• Ed’s unconventional wisdom on using investment stats effectively.
• How does a Financial Plan change how you use investment stats?
• Why it’s important for your financial planner to study fund managers. 
• How fund managers often beat the index. 

5 Steps for You to Become Wealthy

One of the really cool things about my job is that I get to meet a lot of wealthy people. I get to see what kind of people they are and what their life is like.

What I find really rewarding though is to take people whose lives are struggling or just regular income earners and put them on a path to become wealthy.

In my latest podcast episode I’m going to answer the most common questions I get about creating wealth, and how YOU can become wealthy.

You’ll learn:

• What is a wealthy person?
• How much do you need to be wealthy?
• Do you want to be rich or wealthy?
• Do most wealthy people inherit or make it themselves?
• Are wealthy people happy?
• Do wealthy people worry about money all the time?
• How do you define “wealthy”?
• How to create your personal definition of wealthy.
• 5 steps for you to become wealthy.

Is your mortgage tax-deductible?

The Smith Manoeuvre is an elegant strategy to invest for your retirement without using your cash flow.

You borrow against your home to invest for your retirement. It converts your mortgage over time into a tax deductible credit line.

The Smith Manoeuvre is very effective as part of your retirement plan. It typically doubles your retirement portfolio.

To do it the right way, there are three key points:

You should not take monthly income from the investments. You need to do it for the right reason. And you need to choose the right strategy.

In my latest podcast episode you’ll learn:

• The 7 different Smith Manoeuvre strategies.
• Why would you choose to do the Smith Manoeuvre?
• How to deal with the risks of the Smith Manoeuvre.
• How the Forbes 400 richest Americans made their money (hint: most borrowed to invest)! 

You have probably seen many articles Tax-Free Savings Account (TFSA) vs. Registered Retirement Savings Plan (RRSP). Here is the real answer specifically for you from a tax expert.

Deciding on the right one is an important part of your financial plan.

Your personal Financial Plan should include the income per year you will need after you retire to have the retirement lifestyle you want - and the amount you will need to contribute to TFSA or RRSP per year to achieve it.

In my latest podcast episode you’ll learn whether to invest in a TFSA or a RRSP, and why looking at your marginal tax bracket today compared to when you withdraw after you retire, is paramount.

You’ll also discover:

• The real answer for RRSP vs. TFSA specifically for you.
• Why you might be in a higher tax bracket after you retire than before.
• How the 3 clawbacks of government pensions affect your income tax bracket.
• How what you do with your refund affects RRSP vs TFSA.
• What about non-registered investments?
• How to plan for a tax-efficient, comfortable & worry-free retirement.

Dividend investing is a brain fart!

The entire concept is your brain playing tricks on you.

I know that thousands of people like dividend investing. In fact there are hundreds of blogs dedicated to it.

Dividend investing may sound like a solid and steady way to invest.

But it’s a brain fart!

In my latest podcast episode you’ll learn:

• Why is dividend investing a brain fart?
• Why a dividend = selling shares.
• Why a reinvested dividend = No dividend.
• Why dividends are not new money.
• Fact check: Logic errors of dividend investors.
• What is the difference between a dividend & selling shares?
• Why dividends are a payment frequency.
• How can we get out of the Brain Fart?
• How can you perfect dividend investing?
• What are self-made dividends?
• How to invest effectively for “Income”.
• Why are self-made dividends a perfect fit for your life?

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.

What's important about money to you?

Understanding how you feel about money is the first step in an effective financial plan to create the life you want.

Money impacts so many aspects of your life. How you handle it, save it, and spend it can say a lot about you.

There are some common themes in how people feel about money, and what it means to them in both their everyday life and in regards to their long-term goals.

Some people associate money with security or peace of mind, while others think about fun, happiness, self-confidence, independence or freedom.

Knowing what money can do for you, and the values you have for your life, is vital to create an effective financial plan .

In my latest podcast episode, you’ll learn about the different ways people feel about money, and how emotions may dictate how you spend and save.

Discover your own roadmap to the life you want (not someone else’s), and why your financial plan is really a life plan.

As we look forward to the holidays and 2024, one thing I know for sure is: "The World is Getting Better All the Time".

Every generation of young people thinks the world is getting worse, but the world is dramatically better in every important way than 100 years ago.

For example, 170,000 people are lifted out of extreme poverty every day for the last couple decades. 

On average globally, humans have better technology, are richer and live better lives all the time.

I believe we should go into 2024 with the optimism that it is part of the long-term trend of "The World is Getting Better All the Time". 

A few decades from now, the world will be dramatically better than today – like always.

You probably think credit card interest is pretty high.

It can be far higher than you think!

If you or your kids ever do not pay your credit card balances in full by the due date, this is the video to watch.

Credit card debt is the single most common place where Canadians get stuck, which can create havoc with your finances (and future).

In my latest podcast episode you’ll learn:

• What is the small print “Gotcha” in credit card interest?
• Why credit card effective interest rates can be astronomical.
• How to eliminate credit card interest.
• Why you need an emergency plan, not an emergency fund.
• The wholesome way to think of credit cards.
• How to live within your means.
• Why budgeting is tough and how to do it.
• Why eliminating credit card interest is worthwhile.

Can You Be Confident in the Stock Market?

There are two schools of thought on this question.

1. The stock market is a decent investment, but it’s a gamble that may or may not make money for you.

2. The stock market is a reliable long term investment that should be the core of your future financial planning.

Most investors are scared of suffering a major loss, so they invest conservatively for lower risk & lower returns. Are conservative investments more reliable than the stock market?

If you invested 100% in the stock market and held it long term, what are the odds that you would have strong growth over time?

In my latest podcast episode you’ll learn about the historical returns of the stock market and discover how many years you’ll need to invest in the stock market to be confident of a strong investment gain. 

You should open up an FHSA Account this year!

This is for you if you don’t own a home now or in the last four years and are age 18 - 71.

You get contribution room starting the year you open your FHSA, but if you wait until next year you lose that room.

The deadline is December 31.

An FHSA Account is the # 1 way to save for a home down payment if you buy within the next 15 years. You get a tax deduction for contributions, and withdraw tax free to buy your home and you don’t have to repay it.

More reasons in this podcast.

Financial freedom. It’s what we all really want. The question is: how do we get there?

One key component to achieving financial freedom is creating a retirement plan.

Building the nest egg you need doesn’t happen on its own.

Most people only save enough to get 20-30% of the investments they need for the retirement lifestyle they envision.

Creating your retirement plan can be fun. It makes you wealthier. It’s not about your money – it’s about your life.

This article is one of the Must Read posts on my blog. It originally appeared in MoneySaver Magazine.

Listen to the podcast episode to learn:

• How investing in the stock market can close the percentage gap.
• Why it’s important to educate yourself on equity investing.
• 4 key steps to creating a retirement plan.
• Why you need to define the retirement lifestyle you want.
• How to determine your “magic” retirement number.
• The easiest way to calculate how much you should invest.
• 4 options for creating a doable retirement plan.

How much do you need to be financially independent?

That is just one of the many questions posed by Kornel Szrejber of Build Wealth Canada.

He recently interviewed me for his podcast, where I go into depth about financial planning practices I use with my clients, as well as complex tax questions.

Listen to the podcast episode to learn:

• How much you need to be financially independent and retiring with the lifestyle you want, along with the process to figure this out.
• Sustainable withdrawal strategies that you can use to not run out of money when you’re living off your investments.
• How to pay less tax here in Canada.
• If Ed has ever used some type of variable withdrawal strategy with his clients where the amount withdrawn every year varies depending on how the markets did that year.
• If Ed has done any sort of variable withdrawal strategies using a spending ceiling and floor for the year. 
• For those that don't feel comfortable going with 100% equities, what Ed recommends.
• The process and calculations to ensure that you are withdrawing a sustainable amount from your portfolio every year.
• Why it’s important to work one-on-one with a financial planner. 
• How to properly set up your portfolio and manage your income when you retire.

Invest a Lump Sum or Bit-by-Bit. Which Is Smarter?

You have a lump sum of cash and you’re trying to figure out how to invest it.

The stock market seems pretty turbulent at the moment, so you may be wondering if you should invest your lump sum all at once or bit-by-bit. 

Maybe you got a big bonus, a lump sum from Smith Manoeuvre, or a large amount of money to invest.

What to do?

In my latest podcast episode, you’ll learn the pros and cons of both strategies, so you can decide what’s right for you.

• Discover dollar cost averaging (industry jargon for investing bit-by-bit).
• How to beat the index with dollar cost averaging.
• The pros and cons of dollar cost averaging.
• How often should you invest bit-by-bit? 
• Should you trust your gut when investing?
• What does conventional wisdom say about dollar cost averaging? 
• Studies of investing with a lump sum vs. bit-by-bit.
• How often does the stock market go up?
• What growth focused investors do.
• What is the right and wrong type of risk?
• What is smartest for people with a Financial Plan?
• What is Ed’s advice?

I’ve talked with thousands of Canadians that will not have the life they want because their advisor gave them bad advice.

Why do they stick with their advisor?

I’ve heard it over and over again. They say: “because he’s a nice guy”.

The advice here is, you need a competent advisor & real advice, not a nice advisor.

A competent advisor might be really great to work with too, but this is the type of advice you need, so you should beware of who you trust with your finances.

In my latest podcast episode I give you ideas on how to discover if you’re currently working with a “nice” advisor, and what type of financial advice you really need for a successful and secure retirement. 

Listen to find out:

• How does a “nice” advisor kill your financial future?
• Signs you got caught up in the “nice” advisor trap.
• What’s wrong with staying with a nice advisor?
• Why don’t advisors give real advice?
• What is real advice?
• Why does everyone need a Financial Plan?
• Top 4 reasons for not getting a financial plan.
• Benefits of having a financial plan.