Wed, 15 November 2023
In this episode, you’re going to learn:
How to deal with the volatility of the stock market, once you are financially independent and are living off your investments:
We also go through Kyle’s research on the optimum location for the fixed income portion of your portfolio. Traditionally the advice has been to keep fixed income like bonds in our RRSP. But does that still apply considering these higher interest rates that we are now experiencing here in Canada? And what about GICs? How do they fit into all of this? Should we be using those instead?
Last but not least, after taking into account all the research that he’s done on investing and financial planning for over a decade, Kyle shares what types of investments he buys for his own investment portfolio, and what accounts he puts his own investments in for the greatest tax savings and efficiency.
Questions in this Episode:
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Direct download: How_to_Live_Off_Your_Investments_in_Canada__Kyle_Prevost.mp3
Category:Investing -- posted at: 9:23am EST
Tue, 10 October 2023
In this episode, our guest Kyle Prevost is going to take us through how much we need to retire, as Canadians, and how much can we sustainably withdraw from our portfolio to not run out of money once we retire.
If you are a long-time listener of the show, then by now you would have definitely heard of the 4% rule, which helps answer these two questions. But, the 4% rule was created by Americans, for Americans, so how do all those findings and statistics apply to us Canadians?
(If you are new to the show, then don’t worry, we’ll go through what the 4% rule is, and the many caveats that exist with it, that we should keep in mind as Canadians.)
You’re also going to learn:
About Our Guest:
Kyle is founder of the Canadian Financial Summit and he and I have been co-hosting the summit together for the past 2 years. He is also a longtime personal finance columnist and you’ve probably seen a lot of his work over at MoneySense, and he’s been in the National Post, CBC News, The Globe and Mail, and many others. Most recently he is also the creator of 4 Steps to a Worry-Free Retirement - the first online course for Canadian retirement planning.
Wed, 6 September 2023
Paying Less in Interest, Getting the Right Mortgage (New or Renewal), Handling the Higher Interest Rates in Canada
With the multiple interest rate hikes that we’ve been experiencing here in Canada, many Canadians have seen their monthly cashflow take a hit, whether it’s because you have a variable rate mortgage, a line of credit, or other forms of debt.
So what are your options if you’re paying more than you’d like on your interest payments, or maybe you have that mortgage coming up for renewal and you’re going to have to make that multi-thousand dollar decision on how you’re going to proceed?
Should you go with a fixed or variable rate mortgage when interest rates are high like they are right now?
Keep in mind too that if you have a mortgage coming up for renewal, then you won’t be able to get as good of an interest rate upon renewal, as you did when you first got that mortgage years ago, due to all these massive interest rate hikes that we’ve been experiencing.
To tackle all of this, I’ve brought on an expert that deals with these types of interest and mortgage related questions every day, and that is the show’s resident mortgage expert, Sean Cooper.
Sean has also been kind enough to answer for free, any questions that you, the Build Wealth Canada listeners have. I’ve set up a special page for him so all you have to do is go to buildwealthcanada.ca/sean, and there you can send him a message with your questions, or, if you prefer, you can even pick a time on his calendar on that page for a phone or video call to get your questions answered with him live, for free.
Sean is a licensed mortgage broker too, so I definitely also encourage you to reach out to him if you’re looking to get a new mortgage or if your mortgage is coming up for renewal, as at the very least he’ll be able to provide you with a short list of the best mortgages that he’s been able to find across all of Canada from the 60+ lenders that he monitors.
None of this costs you anything, and there’s no obligation to get your mortgage through him or use any of those suggested mortgages.
That link again to get in touch with Sean to get your questions answered, and get his research on the best mortgages that he’s been able to find in Canada is over at buildwealthcanada.ca/sean.
Enjoy the episode. :)
Direct download: Paying_Less_in_Interest_Getting_the_Right_Mortgage_Handling_Higher_Interest_Rates_in_Canada.mp3
Category:Real Estate -- posted at: 5:53am EST
Tue, 1 August 2023
Today we have Canadian author and speaker Fred Masters on the show. Fred has been a professional financial educator for decades here in Canada. He speaks at different universities to students and alumni, teaching financial wellness. In this episode, he’s going to share his findings on:
Fred is also the author of the book “Lessons on Mastering Money” where he identifies six key pillars that can really move the needle for us, when it comes to our finances. We cover those, and much more in the interview. Enjoy!
Get show notes and more free educational resources over at BuildWealthCanada.ca
Direct download: Lessons_on_Mastering_Money_in_Canada_-_Fred_Masters.mp3
Category:Investing -- posted at: 7:56am EST
Wed, 21 June 2023
Today, you’re going to learn how you can save money on your investments, by having the right investments, in the right accounts so that you pay as little tax as possible here in Canada.
For example, if you hold Canadian stocks, or ETFs that hold Canadian stocks, should you put those in your RRSP? Your TFSA? Or your taxable account? Which one of those is the most tax efficient?
What about your US and other international ETFs and stocks? What accounts should they go into so that you pay the least foreign tax on those investments?
For us Canadians, different investments are taxed differently depending on what those investments include, and what investment accounts you put them in.
It’s essentially an optimization puzzle that you can solve, by putting the right investments in the right accounts to pay the least Canadian and foreign tax, on those investments.
If you choose to optimize to this extent like I do, you can essentially reap the benefits of these tax savings for the rest of your life, since those savings will compound over your investment lifetime, and can accelerate your net worth, since every dollar saved in taxes on your investments, is a dollar that stays invested, and continues to grow and compound for you.
Resources mentioned in the episode:
Direct download: How_to_Optimize_Your_Investments_to_Pay_the_Least_in_Tax_for_Canadians_110_PA.mp3
Category:Investing -- posted at: 6:43am EST
Wed, 14 June 2023
Today, you are going to learn about how much you can save in fees and taxes on your investments, depending on how much time you want to spend optimizing your investment portfolio.
In Canada, there are inexpensive options that make things extremely easy and automated for you, but they are slightly more expensive and slightly less tax efficient.
On the other end of the spectrum, there are other investments available to Canadians that are as optimized as you can get in terms of keeping your fees low, and saving you money on both Canadian and international taxes. The trade-off though, is that these optimizations take a fair bit of work on your end to learn and implement.
So how big are these optimization benefits to you?
How much are you really saving by going with a fully optimized approach vs. a semi-optimized approach?
How big should your investment portfolio be before you start optimizing? or should you start optimizing right away?
We also cover where to go to check what fees you’re currently paying on your investments, so that you can have a nice apples-to-apples comparison when you are debating what fund or ETF to buy, or to check whether you are currently overpaying on your investments.
We cover all this and more on this episode.
This week’s episode is a little different since I optimize my investments to this highest level (in terms of paying the lowest fees and lowest taxes), and my guest also does the same. And so, in this episode, instead of the guest doing 90% of the talking, we instead each talk about how we both tackle these questions and I figure this way you are getting two educated perspectives, from two different people, in Canada, who have already been doing this for years.
I think ultimately this approach to the episode will help you make an educated decision on what level of optimization you want to pursue in your own portfolio.
Enjoy the episode. :)
Direct download: 109_How_Much_Should_You_Optimize_Your_Investment_Portfolio_-_Post_Auphonic.mp3
Category:Investing -- posted at: 12:13pm EST
Wed, 7 June 2023
Today I’m going to be answering your questions, to help you out as much as I can in the world of personal finance and investing, here in Canada.
We’re going to focus on actionable, practical advice, specifically for Canadians while taking into account the investment options that we have here in Canada, factoring in our Canadian taxes to make sure that we’re not overpaying, and much more.
In today’s Q&A session, I’m going to be answering questions around:
1. How to determine if you should sell a particular investment that you own.
2. How to evaluate whether your investment returns should be higher.
3. What rate of return should you expect on your investments?
4. Where can you go to check your “total return” on your investments (growth + dividends) and not just the increase in price.
5. And much more.
If you would like to submit a question, the easiest way is to sign up anywhere for free over at buildwealthcanada.ca. When you do that you’ll get taken to a page where you can leave a comment with your question. Also, when you do that, I’ll email you my guide on the “Top Personal Finance and Investing Tools” that I personally use. Enjoy the episode :)
Direct download: 108_Ask_Kornel_-_Should_I_Switch_My_Investments_Are_My_Investments_Falling_Behind.mp3
Category:Investing -- posted at: 3:59pm EST
Wed, 31 May 2023
It’s graduation season here in Canada, so we thought it would be good to focus this episode on parents with kids, those with nieces and nephews, as well as those that are students or fresh out of school. This week, we cover the topic of how to best set up young Canadians and young adults for success, when it comes to money.
Sadly, if you’re my generation or older then you probably got zero education about money when you were in school or fresh out of school. Yet, those are the crucial years where you either establish good or bad money habits, and there are so many things that can lead a young person astray.
Heck, knowing how to keep your investment fees low can literally save you hundreds of thousands of dollars over your investment lifetime, so why wouldn’t you want to know about these things as a student or upon graduation so that you can set yourself up for financial success?
To help me with this topic, I have Canadian author, Douglas Price on the show. Douglas has written the book “Seventeen to Millionaire” a personal finance book for teens and young adults, specifically here in Canada, aimed to help them become financially literate and establish that strong financial foundation to set them up for success.
Enjoy the interview. :)
Direct download: How_to_Raise_Money_Smart_Kids_Teens_and_Young_Adults_-_Douglas_Price.mp3
Category:Investing -- posted at: 5:05pm EST
Wed, 24 May 2023
Active vs. Passive Investing: Interview with S&P (S&P 500, Dow Jones) & How to Choose the Right ETFs
In this episode, I interview S&P, the creator of the S&P 500, Dow Jones, and many other popular indices used around the world by millions of investors.
On today’s interview, we’re going to be covering the SPIVA scorecards which are semiannual reports published by S&P that compare the performance of active funds (i.e. active investing) vs taking the passive index investing approach.
In other words, when you hear the debate of whether you should be a passive index investor, or an active investor, the SPIVA scorecards actually look at how well the active managers have done compared to if you just invested in the index.
Our guests today are Joe Nelesen from S&P, and Erin Allen from BMO ETFs. Joe is the Senior Director of Index Investment Strategy over at S&P, and Erin is the Vice President over at BMO ETFs, which is the largest Canadian provider of ETFs.
I thought we could have both Joe and Erin on the show, as that way we can learn more about the insights and discoveries learned from the SPIVA reports when it comes to the active vs passive debate. And, since Erin and her team actually create these ETFs for Canadians, we discuss how to actually practically apply these SPIVA findings and insights, when constructing or optimizing our own investments portfolio, here in Canada.
In other words, what to look for and things to watch out for when we are actually building, optimizing, and deciding which ETFs to use for our own portfolio.
Direct download: Active_vs_Passive_and_How_to_Choose_the_Right_ETFs_-_106.mp3
Category:Investing -- posted at: 8:21pm EST
Thu, 18 May 2023
Today we have a great case study of somebody that I really respect, and who has been able to achieve financial independence, at a really early age.
I wanted this episode to be relevant to you no matter where you are on your financial independence journey, so I thought we could approach it from two angles:
Our Guest: Steve Chou
Steve's New Book: The Family First Entrepreneur
Steve is a highly recognized influencer and speaker in the e-commerce space. His blog, MyWifeQuitHerJob.com has been featured in Forbes, Inc, The New York Times, Entrepreneur and MSNBC.
Steve also runs one of my favourite marketing podcasts here.
Direct download: 105_Steve_Chou_-_Financial_Independence_Case_Study_AC.mp3
Category:Investing -- posted at: 11:23pm EST
Tue, 9 May 2023
One critical topic that can have a substantial financial impact on both us and our loved ones, is the subject of inheritance, and how to ensure that you and your loved ones don’t end up overpaying in both taxes and fees, once the whole inheritance process starts taking place.
To help me with this subject, I’d like to welcome back Selene Soo on the show. We learned a lot from her last time in the interview on annuities, and this time, we’re going to focus on some best practices, when it comes to inheritance.
Selene is the Director of Wealth Products at RBC Insurance. She has been in the wealth management industry for over two decades, so she definitely has a really large wealth of experience and knowledge when it comes to different retirement planning solutions, whether it’s annuities, segregated funds, and much more.
Enjoy the episode, I hope you learn a lot from the session, thanks for tuning in, and now, let’s get into the interview.
Resources from the Episode:
Check out my previous interview with Selene on Annuities - Guaranteed Income for Life
Tue, 11 April 2023
A DIY Investor's Guide to Determining Your Financial Independence Number and Sustainable Withdrawal Strategy
Today’s guest is Jason Heath, one of Canada’s best known fee-only financial planners that you’ve probably seen in all sorts of media here in Canada over the years. He’s a Certified Financial Planner (CFP), has been providing financial planning for over 20 years, and is currently a personal finance columnist for the Financial Post, MoneySense, and is also a regular contributor to RetireHappy.ca.
I’ve been reading his insightful financial planning articles for years, so it’s really great to have him on again, and in this episode, we get his perspectives on:
Enjoy the episode, it’s great having you here, thanks for tuning in, I hope you leave the show a rating on Apple Podcasts or Spotify, and now let’s get into the interview.
Direct download: A_DIY_Investor_Guide_to_Determining_Your_Financial_Independence_Number_and_Sustainable_Withdrawal_Strategy_-_Jason_Heath_103.mp3
Category:Investing -- posted at: 9:57am EST
Wed, 8 March 2023
With the significant increase in interest rates over the past year, and with home buying and selling season right around the corner, I thought it would be great to have our resident mortgage expert on the show, to go over the implications of this higher interest rate environment that we're in.
Whether you’re getting a new mortgage, or are considering refinancing, we tackle whether you should go with a variable rate or fixed rate mortgage in this current interest rate environment.
There could also be some new mortgage rules coming out this spring as well, so we cover what those are so that you can be better prepared.
You might have also been experiencing quite a bit of a payment shock if you hold a variable rate mortgage, with a drastic increase in your monthly mortgage payments. And, if you’re a fixed rate mortgage holder, then you’re not out of the woods either, as when your mortgage inevitably comes up for renewal, you might very well be forced into a much higher rate on your new mortgage than what you’ve been used to over the past few years. We’re going to cover this new challenge that you may be facing, with these higher rates, along with some things you can do to lower your monthly mortgage payments, despite these increases in rates.
Our guest today is the show’s resident mortgage expert, Sean Cooper. He's who I go to and who I send friends and family to for any mortgage related questions.
Sean is the bestselling author of the book, "Burn Your Mortgage". He bought his first house when he was only 27 in Toronto and paid off his mortgage in just 3 years by age 30.
These days, Sean’s helping others burn their mortgages too, as an independent mortgage broker.
Sean has offered to answer for free, any questions that you, the Build Wealth Canada listeners have. I’ve set up a special page for him so all you have to do is go to buildwealthcanada.ca/sean, and there you can send him a message with your questions.
Or, if you prefer, you can even pick a time on his calendar for a phone or video call to get your questions answered with him live, for free.
Sean is a licensed mortgage broker too so I definitely also encourage you to reach out to him if you’re looking to get a new mortgage or if your mortgage is coming up for renewal, as at the very least he’ll be able to provide you with a short list of the best mortgages that he’s been able to find across all of Canada from the 60+ lenders that he monitors.
None of this costs you anything, and there’s no obligation to get your mortgage through him or use any of those suggested mortgages.
At the very least, you’ll get some good education and research on the top mortgages available in Canada right now, you’ll learn what to look for when choosing your next mortgage, and you can always decide later whether you’d like him to help you with the process, or if you want to do it all yourself. It doesn’t cost you anything regardless.
Questions from the Episode:
Direct download: 102_Rising_interest_rates_new_mortgage_rules_variable_vs_fixed_mortgages_Sean_Cooper.mp3
Category:Real Estate -- posted at: 10:31am EST
Wed, 15 February 2023
It's RRSP season here in Canada. Remember that March 1 is the deadline for contributing to an RRSP, and have it count towards your 2022 tax year.
Also while we’re on the subject, remember that your TFSA contribution room grows every year, and for the 2023 calendar year, you now have an extra $6,500 that you and your partner can contribute each. That's $13,000 total if you both max it out.
Last year the limit was $6,000 per person so the government did increase that by $500 per person for this year.
I find that these are things that are easy to forget as life gets buys, but I always have reminders set up for these things as, especially in the case of the TFSA, it’s always nice to put in the effort to max that out so that you can get that tax-free growth on that new money invested, all year long.
Since it’s RRSP season, and tax season is coming up, I thought it would be worthwhile to have another successful Canadian Financial Planner on the show, so that we can get a good second opinion on:
· How much do you need to be financially independent and have the option of retiring?
· What are some of the sustainable withdrawal strategies that you can use when you’re ready to start living off your portfolio?
· What is the process and calculations that should be done annually to ensure that you are withdrawing a sustainable amount from your portfolio?
· And, since our guest has been in the financial planning industry for decades at this point, I ask him if he’s noticed certain patterns when it comes to clients that are successful both financially and in life, versus those that are not. This way we can pick some lessons learned from others, apply them to our own lives, and hopefully avoid some completely avoidable mistakes that others endured before us.
Before we get into the interview, I wanted to invite you to a free webinar and Q&A that I’ll be doing with the actual co-creator of the TFSA.
He’s the former Chief of Staff for the Minister of Finance in Canada. His name is Kevin McCarthy, and if you’ve ever had TFSA or RRSP related questions, or would just like to ask the creator of the TFSA your questions, you can do so at this webinar.
I’ll be there too obviously and so after Kevin goes through his educational presentation where he goes over the RRSP and TFSA fundamentals, as well as the tax deductions and tax credits available to us as Canadians, we’ll then have a live Q&A with him and I and so you can ask him or me your questions when it comes to personal finance, investing, financial independence and retirement, living off your investments, etc.
The session is on February 23, 2023, and it will be recorded so even if you can’t make it live, you can still signup to be emailed the replay once it’s released.
Also, Kevin has informed me that anyone attending live will receive a downloadable version of his and his team’s proprietary Income Tax and RRSP Tax Savings Calculator.
The link to sign up for free is BuildWealthCanada.ca/webinar.
I look forward to seeing and interacting with you there, and now, let’s get into the interview!
Direct download: 101_-_Finding_Your_Financial_Independence_Number_-_John_Kalos.mp3
Category:Investing -- posted at: 2:07pm EST
Tue, 17 January 2023
In this episode, I interview one of the most experienced Canadian financial planners that I know, and who I tend to go to when I have any complex tax and financial planning questions. His name is Ed Rempel, and in this episode, we tackle:
Thanks so much for tuning in, and please remember to leave a rating on Apple Podcasts or Spotify if you enjoy the show.
Here are all the questions we cover in the interview:
Direct download: How_to_Live_Off_Your_Investments_and_How_Much_Do_You_Need_-_Featuring_Ed_Rempel.mp3
Category:Investing -- posted at: 10:09am EST