In this episode, we talk about how we can set our investments up so that we can live off them in retirement (whether it’s a traditional retirement or early retirement).

We also cover the important subject of how to stress-test our investment portfolio so that we can help ensure that we don’t run out of money in our retirement.

You can also use these tools to see (approximately) if you actually have enough to retire now (or to see how much more you need).

New Tool: Get Your Credit Score Checked for Free

A big thanks to Borrowell for sponsoring the show and for building such a great free tool that we can use to check our credit score. It has saved me a lot of time when I want to quickly check the status of my credit score (for example, to ensure there has been no fraud or identity theft in my accounts). 

You also obviously want to make sure your score is as high as possible for any mortgages or other loans that you end up applying for (to ensure you get the lowest rate and get approved). 

Even if you aren't looking for a loan, I ecourage you to at least pull your report for free to help ensure that there are no unauthorized transactions on your accounts. As a best practice, you should be doing this kind of check at least annually. 

Thanks again Borrowell for building a tool where we Canadians can finally get access to this data quickly and for free. 

Other Resources from the Episode:

Top Tools and Resources for Financial Independence (for Canadians): All the top tools and sites that I’ve personally used to help us achieve financial independence in our early 30s. They’re also what we use now to optimize and manage our finances, and ensure that we’re paying the lowest fees while getting solid returns on our investments. 

Canada’s Top ETFs Guide & Top High-Interest Savings Account: In the guide, I go over what I personally invest in and why I invest in it. The investments that I talk about ​are literally where we have almost our entire net worth (apart from our house), and is what we are primarily living off right now in our early retirement. At the very least you’ll learn about some great ETFs to consider for your portfolio, and if you are new to ETFs, it’ll give you a nice list of some top ETFs to consider from the thousands that are out there. 

The guide is available for free to any listeners that that use this link to sign up for a free savings account with the bank that I personally use, EQ bank. 

The reason that I personally use EQ bank, is that they have one of the highest interest savings rates in Canada (they are currently offering 2.3% which is more than double what the major banks are offering).

It’s also free to sign up and keep an account with them, so you’re not paying a monthly fee like you do with many of the other banks out there. You also get unlimited transactions, unlimited Interac e-transfers, and can take out your money at any time if you need it, and there are no minimum balances.

Because of those reasons, I’ve been with them ever since they launched in Canada years ago, and it’s where I keep my entire emergency fund and spending money. 

To get the free high-interest account and the free guide on the top ETFs in Canada, just go to buildwealthcanada.ca/eq, open the free account, and once you’re done, forward any email that you get from EQ to bonus@buildwealthcanada.ca and I’ll send you the full comprehensive guide for free. 

Roger's Amazing Educational Resources:

Roger's Rock Retirement Club (applicable to Canadians)

Roger's Main Site: Retirement Answer Man

Roger's Podcast: Retirement Answer Man Podcast

Free Monte Carlo Simulation Tools:

To help ensure that you have enough to retire, we talked a lot about Monte Carlo analysis. Below are three tools that I use where you can run Monte Carlo simulations for free:

cfiresim.com

firecalc.com

portfoliovisualizer.com

Questions Covered:

1. Let’s say you created a comprehensive financial plan with a client. You give them the green light to retire and they do so. A year later, we run into a 2008 scenario, or a large stock market decline. When you do your annual/semi-annual review with the client, what’s the process that you go through to determine if they are still okay, or if they need to make some adjustments?
   
   
2. I’ve noticed that you’re a heavy user of Monte Carlo simulations to stress-test whether someone has enough to retire. For somebody that hasn’t heard of this before, can you explain what it is?
   
   There are free tools out there like Firecalc.com and cfiresim.com that let people run their own Monte Carlo simulations to see if they have enough to retire. Do you have any advice when using tools such as these? For example, are there any common mistakes that you see people do when using them?
   
   
3. I noticed that not all financial planners and financial planning software do Monte Carlo stress-tests like do. The most common alternative that I’ve seen, is that in the financial planning software, the financial planner just enters what rates of return they expect the client to receive for the different years when doing the retirement projections. When using this alternate method, how should listeners of the show ensure that their financial planners are stress-testing their retirement projections to ensure that they still have enough to retire, even if they hit a major recession shortly after retirement? (i.e. They get hit by a bad sequence of returns)
   
   
4. After listening to your podcast for years, I got the sense that you are a fan of the bucket strategy. Can you explain what it is, and can you talk about the default bucket strategy that you like to start with, and then how do you adjust it depending on the client?
   
   
5. Do you subtract dividends/interest from that “annual expenses” figure when determining how much cash/fixed income to have?
   
   
6. Do you have some sort of rule/process when it comes to refilling the buckets. For example: “If X happens in the markets then I’m selling off equities to generate cash to live from. If Y happens then I use a cash cushion or the bond portion and I refill it when markets are up by a certain percent”?

7. How would your bucket strategy differ when dealing with a traditional retiree (ex. Age 65), vs an early retiree (ex. Age 30s or 40s)

8. Do you have a preferred way(s) of helping clients deal with sequence risk? (please define it too for those that are new to this) 

9. When you’re working with clients and strategizing on what should be in the fixed income/safe portion of their portfolio, how do you determine how much they should put into bonds vs a high-interest savings account vs GICs (GICs are the US version of CDs)? Are there certain rules or processes that you like to follow to determine this?
   
   
10. A lot of the listeners of this show are do-it-yourself investors, and you’ve built a really great on-line community of do-it-yourself retirees as part of your Rock Retirement Club. Can you tell us more about the Rock Retirement Club, as well as a bit more about your podcast and where we can learn more from you?

Today we have insurance industry insider, Laura McKay on the show, who reveals some of the top tricks and tactics used in the insurance industry, to keep us overpaying. 

She covers what to look out for, and what we can actually do on our end to make sure that we get the best rates possible, and aren't overpaying for insurance that we may not even need. 

Laura used to work as an actuary, and is now the Co-founder and President of PolicyMe, which is a great tool for Canadians that you can use for free to see how much insurance you actually need.

It also tells you if you are overpaying for insurance, or if you are underinsured and taking on a lot of unnecessary risk in case something was to happen to you. I also really like how it lets you comparison shop different insurance providers without having to fill out countless insurance forms for each individual insurance company that you want a quote from. 

Enjoy the episode. You'll learn a lot of actionable insider information that can potentially save you thousands of dollars long-term.

Resources from the Episode:

PolicyMe's free tool to find out how much insurance you need and find out if you are overpaying or are underinsured. The tool also lets you easily comparison shop between different insurance providers to ensure you get the lowest rate.

Top Tools and Resources for Financial Independence (for Canadians): All the top tools and sites that I’ve personally used to help us achieve financial independence in our early 30s. They’re also what we use now to optimize and manage our finances, and ensure that we’re paying the lowest fees while getting solid returns on our investments. 

Canada’s Top ETFs Guide & Top High-Interest Savings Account: In the guide, I go over what I personally invest in and why I invest in it. The investments that I talk about ​are literally where we have almost our entire net worth (apart from our house), and is what we are primarily living off right now in our early retirement. At the very least you’ll learn about some great ETFs to consider for your portfolio, and if you are new to ETFs, it’ll give you a nice list of some top ETFs to consider from the thousands that are out there. 

The guide is available for free to any listeners that that use this link to sign up for a free savings account with the bank that I personally use, EQ bank. 

The reason that I personally use EQ bank, is that they have one of the highest interest savings rates in Canada (they are currently offering 2.3% which is more than double what the major banks are offering).

It’s also free to sign up and keep an account with them, so you’re not paying a monthly fee like you do with many of the other banks out there. You also get unlimited transactions, unlimited Interac e-transfers, and can take out your money at any time if you need it, and there are no minimum balances.

Because of those reasons, I’ve been with them ever since they launched in Canada years ago, and it’s where I keep my entire emergency fund and spending money. 

To get the free high-interest account and the free guide on the top ETFs in Canada, just go to buildwealthcanada.ca/eq, open the free account, and once you’re done, forward any email that you get from EQ to bonus@buildwealthcanada.ca and I’ll send you the full comprehensive guide for free. 

Questions Covered:

1. Can you tell us a bit about your story and experience as an insider in the insurance industry, and what caused you to leave that standard insurance career path?
   
   
2. One of the most common tricks that I’ve seen insurance providers use over the years, is making it sound like everybody needs life insurance, no matter what.
   
   What I found different about you guys, is that you actually do a great job explaining why not everyone needs insurance. Can you take us through what kind of person or family would need life insurance, and when they wouldn’t?
   
   Also, when can we get rid of life insurance so we can save some extra money every month?
   
   
3. Another trick that I’ve heard about is companies telling young people to get life insurance even if they don’t really need it yet, because the younger you are, the lower your rates will be. 
   
   This can sound appealing as it’s a way to lock-in those low rates for decades. Can you talk about this strategy and is it worth it?
   
   For example, would someone be better off just taking the money that they would be paying to insurance, and instead investing it in their TFSA, RRSP, or paying off debt?
   
   
4. One of the types of insurance that I see people get talked into is permanent life insurance. But, out of all the personal finance experts that I’ve talked to, I have yet to hear anybody recommend it (unless they sell it, in which case they do suggest it because they get paid a commission from it).
   
   Can you talk about permanent life insurance vs term insurance, what each of them are, along with the pros and cons of each one.
   
   
5. One of the arguments that I’ve heard for permanent life insurance is that it invests some of the money that you pay them, and that money is able to grow tax-free. This sounds appealing as it starts to sound a little bit like a TFSA. How is this different though, than investing in a TFSA?
   
   
6. When investing through a permanent life insurance policy, how do the fees and rates-of-return compare to instead doing index investing using low-cost ETFs or using a robo-advisor?
   
   
7. One of the tricks that I’ve noticed you bring up on your site is how many insurance providers us the “x times income” rule. Can you explain what that is, and how you can end up paying for more insurance than you need if you let a provider use this rule?
   
   
8. Obviously there are a lot of things that we can’t control that impact how much we pay for insurance, like our age. But, what are the things that we can control that can lower our rates?
   
   
9. Under what conditions would someone’s premium change? For example, if somebody develops a heart problem after the person has already become insured. Would it be adjusted based on this new information?
   
   Should you disclose such things to your insurance company if it happened after the policy is already in effect?
   
   
10. Another common trick I see, is companies not telling us when we no longer need that higher coverage. This makes sense of course as the larger our coverage, the more money they make from us.
    
    In what cases should we actually lower our coverage, and what’s the best process for doing so? (i.e. Kids out of the house, no more mortgage, No debts, other?)
    
    
11. If you are a couple, what are the pros and cons of buying one joint policy vs buying two individual policies?
    
    
12. Can you tell us a bit more about your tool and what you factor in when making those recommendations on how much we actually need?
    
    
13. When you pull the rates from the different providers, how many different providers do you actually pull the prices from? 

Our guest today is Jason Heath, CFP who has been providing fee-only, advice-only financial planning since 2001 and is one of Canada’s best-known fee-only financial planners.

He 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 on MoneySense for years, so I thought it would be great to have him on the show to discuss how we Canadians can optimize our investment portfolios. 

We cover both phases: Before retirement when you're in the growth phase trying to retire early, and after retirement, once you’ve hit your number and want to make sure you don’t run out of money.

Questions Covered:

1. What do you think is the best way for do-it-yourself investors to determine their asset allocation in terms of what percentage of stocks vs fixed income to hold in their portfolio?
   
   Does the answer change depending on whether someone is working towards an early retirement vs already being retired?
   
   I find asset allocation questionnaires are far from perfect, as people's emotions and feelings about the answers can really change depending on when you ask them and how much they already know about investing.
   
   For somebody that is in or approaching an early retirement or traditional retirement, do you also base the percentage of their fixed income on some spending related rule? For example: That common advice to hold five years of living expenses as fixed income as that should ride out most recessions.
   
   
2. When you're working with clients and strategizing on what should be in the fixed income/safe portion of their portfolio, how do you determine how much they should put into bonds vs a high interest savings account vs GICs? Are there certain rules or processes that you like to follow to determine this?
   
   
3. For those that are retired, what are some of your favourite ways to manage the cashflow in retirement so that the retiree doesn't run out of money. For example, do you use some sort of bucket strategy? ex. Having equity, bonds, GICs and cash buckets then rebalancing and refilling those accordingly?
   
   
4. I find that many investors who are new to investing, or are switching to do-it-yourself investing to save on fees, sometimes they get intimidated by now having to rebalance their investments.
   
   For anybody new to this, can you define what rebalancing is and what rule or rules do you have for yourself (and your practice) that determines when you rebalance?
   
   
5. What are your thoughts about the increasingly popular Asset Allocation ETFs where the rebalancing is done for you?
   
   
6. Are there any negatives about Asset Allocation ETFs that you think should be considered?
7. What accounts are they best suited for?
   
   
8. For somebody that is already retired and needs to use their investments for living expenses, how do you determine whether to sell off equities vs sell bonds or use cash or GICs?
   
   
9. Do you have some sort of rule/process like if X happens in the markets then I'm selling off equities to generate cash to live from. If Y happens then I use a cash cushion or the bond portion?
   
   
10. What are your thoughts on the 4% rule and are there any variable spending strategies that you like instead of using the 4% rule?
    
    
11. If you could go back to when you first started investing, what advice would you give yourself?

Resources from the Episode:

Free tickets to the Canadian Financial Summit:

I’ll be speaking again at the Canadian Financial Summit and I have free tickets for you. The entire event is online so you can watch it from anywhere, and it’s Canada’s largest personal finance conference.

I’ll be there together with over 25 Canadian personal finance experts, and in my talk I’ll be speaking about how we optimized our investment portfolio before we retired, and after we retired. This way no matter where you are on your financial independence journey, it’ll at the very least give you some insights on ways that you can optimize your own investment portfolio so that you can retire early, or at least hit your financial independence number quicker.

To get your free tickets for a limited time, go to:
https://kornel–canadianfinancialsummit.thrivecart.com/2019-all-access-pass/

Top Tools and Resources for Financial Independence (for Canadians):

All the top tools and sites that I’ve personally used to help us achieve financial independence in our early 30s. They’re also what we use now to optimize and manage our finances, and ensure that we’re paying the lowest fees while getting solid returns on our investments. 

Canada’s Top ETFs Guide & Top High-Interest Savings Account: In the guide, I go over what I personally invest in, why I invest in it. The investments that I talk about ​are literally where we have almost our entire net worth (apart from our house), and is what we are primarily living off right now in our early retirement. At the very least you’ll learn about some great ETFs to consider for your portfolio, and if you are new to ETFs, it’ll give you a nice list of some top ETFs to consider from the thousands that are out there. 

The guide is available for free to any listeners that use my link to sign up for a free savings account with the bank that I personally use, EQ bank. 

The reason that I personally use EQ bank, is that they have one of the highest interest savings rates in Canada (they are currently offering 2.3% which is more than double what the major banks are offering).

It’s also free to sign up and keep an account with them, so you’re not paying a monthly fee like you do with many of the other banks out there. You also get unlimited transactions, unlimited Interac e-transfers, and can take out your money at any time if you need it, and there are no minimum balances.

Because of those reasons, I’ve been with them ever since they launched in Canada years ago, and it’s where I keep my entire emergency fund and spending money. 

To get the free high-interest account and the free guide on the top ETFs in Canada, just go to buildwealthcanada.ca/eq, open the free account, and once you’re done, forward any email that you get from EQ to bonus@buildwealthcanada.ca and I’ll send you the full comprehensive guide for free. 

Jason’s Site and Financial Planning Practice:https://objectivefinancialpartners.com/

Jason’s Articles on MoneySense:
https://www.moneysense.ca/author/jason-heath/

Vanguard’s Asset Allocation Tool/Questionnaire:
https://www.vanguardcanada.ca/individual/questionnaire.htm

Vanguard’s Asset Allocation ETFs:
https://www.vanguardcanada.ca/individual/indv/en/product.html#/productType=etf&assetClass=balanced

Today we have Meghan Chomut on the show who is a financial planner specializing in real estate for both your primary residence and rental properties. She has also personally done property flipping before so I thought it would be great to have her on the show to teach us some lessons and best practices that we can apply to both our primary residence (whether we are an existing or aspiring homeowner), as well as learn more about what to consider and look out for when deciding to invest in a rental property, or flip houses.

I’m a former rental property owner and former landlord as well so we both share some of our lessons learned and give a realistic preview of real estate investing so that you can better decide whether it’s the right fit for you.

Resources from the Episode:

Top Tools and Resources for Financial Independence (for Canadians): All the top tools and sites that I've personally used to help us achieve financial independence in our early 30s. They're also what we use now to optimize and manage our finances, and ensure that we're paying the lowest fees while getting solid returns on our investments. 

Have a mortgage question? Looking for the top mortgages in Canada? Get a free call with our mortgage expert Sean Cooper (you'll also get a free guide on what to look out for when choosing a mortgage).

Canada's Top ETFs Guide & Top High-Interest Savings Account: In the guide, I go over what I personally invest in, why I invest in it. The investments that I talk about ​are literally where we have almost our entire net worth (apart from our house), and is what we are primarily living off right now in our early retirement. At the very least you'll learn about some great ETFs to consider for your portfolio, and if you are new to ETFs, it'll give you a nice list of some top ETFs to consider from the thousands that are out there. 

The guide available for free to any listeners that that use my special link to sign up for a free savings account with the bank that I personally use, EQ bank. 

The reason that I personally use EQ bank, is that they have one of the highest interest savings rates in Canada (they are currently offering 2.3% which is more than double what the major banks are offering).

It’s also free to sign up and keep an account with them, so you’re not paying a monthly fee like you do with many of the other banks out there. You also get unlimited transactions, unlimited Interac e-transfers, and can take out your money at any time if you need it, and there are no minimum balances.

Because of those reasons, I’ve been with them ever since they launched in Canada years ago, and it’s where I keep my entire emergency fund and spending money. 

To get the free high-interest account and the free guide on the top ETFs in Canada, just go to buildwealthcanada.ca/eq, open the free account, and once you’re done, forward any email that you get from EQ to bonus@buildwealthcanada.ca and I’ll send you the full comprehensive guide for free. 

Meghan Chomut's Site: A big thanks to Meghan for coming on the show. You can reach out to her and learn more about her over at www.meghanchomut.com.

Questions Covered:

• When deciding to purchase a property whether for personal use or as an investment property, what components should we be factoring in that are critical when crunching the numbers?
  
  
• How should we do be doing the math on the mortgage amount to take? (instead of taking the top amount our mortgage specialist or bank says that we can afford)

• What are things that Canadians often forget to calculate? (on both home and investments properties that they are considering)

• When saving for a downpayment, where do you suggest Canadians keep that money (ex. High-interest savings account, GIC, and ETF, etc.)

• You’ve actually flipped a house before. Can you tell us about that experience, what did you learn, and what are the pros and cons of this approach to making money?

• What are the top mistakes Canadians make when it comes to flipping homes?

• To help reduce the chance of unexpected surprises when purchasing a home or investment property, what type of due diligence do you recommend Canadians do?
  
  
• How is the due diligence required different between a rental property vs a home that you actually live in?
  
  
• Many Canadians view the home that they live in as an investment. Is this the right way to think about it?

• What are your thoughts between going with a fixed vs variable mortgage and what analysis do you do to determine the right one?

Today we have Kristy and Bryce on the show who are Canada's youngest retirees.

Kristy retired at 31 while Bryce was 32, and today I pick their brains on how they pulled it off, how they invest, and how they structured their investment portfolio to ensure that they never run out of money.

Kristy and Bryce also just launched a book on how they retired early, and in it they share a repeatable step-by-step plan on how anybody can retire early. It's a very practical book, ​I ​really enjoyed it, and wish it was around when I started my FIRE (financial independence, retire early) journey. 

The​ir​ book is called Quit like a Millionaire and I have some copies to give away to you as well.

If you want to sign up for free to be entered into the giveaway, just click here and enter your name and email so I know how to reach you if you win.

Questions Asked:

1. Tell us your story and how were you able to retire in your early 30s?
   
   
2. Tell us about your book. What's it about, who is it for, and how do we Canadians benefit from reading it? 
   
   
3. What analysis did you guys do to determine if you have enough to retire and won't run out of money?
   
   
   • Let's talk about the Trinity Study/4% rule. First, for anybody that hasn’t heard of it yet, can you explain what it is?
     
     
   • What was your thought process around the 4% rule right before you quit your jobs to give you the courage to do so? (i.e. There are certain caveats, objections, etc. How did you deal with them mentally?)
     
     
   • Now that you’ve been retired for several years, have your thoughts on the 4% rule changed in any way?
     
     
4. I recall you guys writing about how you also use the FireCalc or FireSim calculators (which I’m also a big fan of). Can you explain to the listeners what those are and how you used them?
   • These tools let you adjust certain variables. Are there any adjustments that you made that you think would be useful for Canadians to know about when they run their own calculations? (to get more realistic/accurate results)
     
     
5. In your retirement, you use what you call “The Yield Shield” strategy. Can you explain what that is to everyone?  
   
   
   • I got the impression that a lot of the others in the FIRE community who have pulled off an early retirement don’t focus on the yield the way that you guys do. The most common strategy seems to be to not focus on yield, and instead just withdraw 3.5-4% of their portfolio per year, by selling off investments when needed, as that’s what the Trinity Study proved to be sustainable (If I'm not mistaken, I believe Jim Collins, MMM and Justin do it this way for example). 
     
     What made you decide to create this Yield Shield strategy instead of just going for the simpler 3.5-4% withdraw rate and not worrying about the yield?
     
     
6. To pull off the Yield Shield, you guys chose to invest in a few ETFs that aren’t as commonly talked about in the FIRE community. I’d love to get your take on why you chose those specific ETF and their weights:
   
   
   • Let’s start with REITs. Why was your reasoning for adding these into your portfolio (5% weight)?
   • What made you choose the ETF: XRE to get this coverage?
     
     
7. What made you decide to add a Canadian Preferred Shares ETF into your portfolio (20% weight)?
   
   What made you choose the ETF: CPD to get this coverage?
   
   
8. What about choosing corporate bonds (10% weight) with XCB?
   
   
9. Lastly, what made you choose the Canadian Select Dividend (5% weight) with XDV?
   
   
10. How did you change your portfolio from pre-retirement to retirement (if at all)?
    
    
11. When did you start making that transition? (i.e. The day you retired, a year before, etc.) 
    
    
12. Let's say we had a 40% downturn, something like another 2008. What would you do in that situation?
    
    
13. Would you still withdraw some of your principal because the 4% rule factors that in? (Your yield would also likely decrease in this scenario so how would you address that?)
    
    
14. What changes would you make (if any) within your investments?
    
    
15. Your blog Millennial Revolution is easily one of my favorite blogs. How is your book different than the blog, where can everyone go to pick it up, and where can we all learn more from you guys?

Links and Resources Mentioned:

Quit Like a Millionaire Book Link

Book Giveaway

Top ETF Guide for Canadians (sign up for free at buildwealthcanada.ca/eq and send any email from EQ to bonus@buildwealthcanada.ca)

Michael Kitces and Mad Fientist Podcast Episode on 4% Rule

Our Favourite Retirement Calculators:

FireCalc

FireSIM

Yield Shield Article

House hunting season has officially begun, so I thought it would be a good idea to have an insider from the mortgage industry on the show to learn some tops tips on getting the lowest possible mortgage rate, whether you are looking for a new mortgage, or have one that you’ll need to renew soon.

In the interview, we also look at what else you should look for in a mortgage, in addition to just getting the lowest rate possible. In other words, what are the different clauses or contract terms that you should look out for, when getting a new mortgage, or renewing your existing one.

And, our industry insider and mortgage expert will tell us what sales and marketing tactics and tricks we should look out for from the banks and other mortgage providers.

Last but definitely not least, we discuss the pros and cons of the different ways that you can get your mortgage. For instance, do you use a mortgage broker? Do you go directly to a bank or credit union? Or do you just use one of the many mortgage comparison sites out there?

About the Guest: Sean Cooper

Sean is the bestselling author of the book, Burn Your Mortgage: The Simple, Powerful Path to Financial Freedom for Canadians. 

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.

Before we dive into the interview, 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, enter your email, and Sean will be in touch with you and will be able to answer any questions that you may have.

He’s 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.

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 on the top mortgages available in Canada, 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.

As a bonus, I’ll also email you the Mortgage Checklist, which is a guide on the top things to look for and consider when choosing a mortgage.

So, that link again to get in touch with Sean, get your questions answered, get the free mortgage checklist guide, and get that research on some of the best mortgage in Canada is buildwealthcanada.ca/sean.

A common problem that holds some Canadians back from paying the lowest possible fees in investing by becoming a DIY (do-it-yourself) investor, is that it does take a bit of learning and practice. Also since we’re not taught this in school, it can be intimidating.

Even those that aren't intimidated by it can at times become annoyed with all the manual administrative work that is required when it comes to being a DIY investor (myself included).

For example, whether you're a new or an experienced investor, you still have to go through the hassle of individually buying the ETFs on the exchange, doing the calculations to make sure you buy the right quantities, and rebalancing your portfolio periodically so that you don’t accidentally end up taking on too much risk.

You also have to keep tracking and checking when your dividends came in so that you can quickly invest them to maximize the compound growth in your portfolio.

This is why I’m really excited to have Brendan Lee Young from Passiv on the show along with Stephen Graham from Questrade, as they have teamed up to automate these time consuming and sometimes intimidating elements when it comes to managing and optimizing your own investment portfolio.

I’ve been using the tool very heavily myself, have integrated my wife and I’s entire investment portfolio with it, and I encourage you to try it for free as it will save you a ton of time (just like it has for me).

You can grab your free account over at buildwealthcanada.ca/passiv. I am absolutely hooked on using it, and it's great to see this kind of innovation taking place in Canada.

If you liked the episode sign up for free to receive all new episodes as they get released, news on giveaways, and the free guide on the Top 5 Personal Finance and Productivity Tools.

Today I have the creator of the TFSA (Tax Free Savings Account) on the show who shares his best TFSA tips and strategies, while also discussing his initiative to enhance financial literacy in Canada.

His name is Kevin McCarthy, and while working in Ottawa, Kevin was responsible for the financial literacy file for Minister Flaherty and helped launch the federal government’s Financial Literacy Panel.

He played a key role in the development and naming of the Tax-Free Savings Account (TFSA), the single most important personal savings vehicle since the introduction of the Registered Retirement Savings Plan (RRSP).

Kevin has since joined a great organization called Enriched Academy which focuses on teaching financial literacy here in Canada.

Get Your Free 1-Year Subscription to Canadian MoneySaver Magazine

Lastly, don’t forget to claim your free 1-year digital subscription to Canadian MoneySaver Magazine (Canada’s largest personal finance and investing magazine).

The magazine features Canada’s top experts on personal finance and investing, and is a great place to learn best practices, and stay up to date on changes that will impact your investments and financial situation for years to come, specifically here in Canada.

To get that, all you have to do is open up a free savings account with my favourite bank (and the bank that I personally use, EQ bank).

The reason that I personally use EQ bank, is that they have one of the highest interest savings rates in Canada. In fact, over all the years that I’ve been with them, I’ve seen them consistently be almost double the interest rate compared to other online banks, and well over double the interest rate compared to the major brick and mortar banks that we have here in Canada.  

Plus it’s free to sign up and keep an account with them, so you’re not paying a monthly fee as you do with many of the other banks out there. As a bonus you also get unlimited free Interac e-transfers every month!

Because of those reasons, I’ve been with them ever since they launched in Canada years ago, and it’s where I keep my entire emergency fund and spending money.

To get the free account and a 1 year free subscription to Canadian MoneySaver magazine, just go to buildwealthcanada.ca/eq, open the free account, and once you’re done, forward any email that you get from EQ to bonus@buildwealthcanada.ca and I’ll send you a coupon code that gets you a free one year subscription to the magazine.

Enjoy, and thanks for supporting the show!

Links and Resources:

Financial Literacy Training at Enriched Academy

Kevin's LinkedIn Profile

EQ High Interest Savings Account with Bonus

Questions Covered:

1. To start things off, tell us a bit about yourself and your background in government, as well as your transition to promoting financial literacy by working with Enriched Academy.
   
   
2. Why did the government decide to introduce the TFSA and what was your involvement in that?
   
   
3. For anybody just getting started learning about RRSPs and TFSAs, can you explain what they are, and share your best practices on how to use them?
   
   
4. I find that definitely one of, if not the most common questions that Canadian investors have, is how to decide for any given year whether they should be putting their savings in their TFSA, RRSP, or a combination of the two. As someone who helped create the TFSA, what would you say to someone asking this question? 
   
   
5. What are the most common mistake you see Canadians making with their TFSA? 
   
   
6. What about the most common mistakes Canadians make with their RRSP? 
   
   
7. When it comes to financial literacy, what would you say are the biggest misconceptions, or things that Canadians just don't know about that are holding them back and limiting their net worth? 
   
   
8. I find we Canadians sometimes get worried about the changes that the government might do which can impact our financial futures. In particular, there definitely seems to be some worry about the large percentage of the Canadian population retiring, and about there not being enough young people to support them from a tax revenue perspective.
   
   
9. Should we be concerned?
   
   
10. Based on your extensive experience in the government sector, how do you see things playing out when it comes to this challenge?
    
    
11. What changes to our government benefits do you think may take place?
    
    
12. For anybody that won't be retiring for another 10+ years, how can we best prepare ourselves for this uncertainty of how much income from the government we'll actually end up receiving in the future?
    
    
13. I'd love to get your perspective on the Registered Disability Savings Plan (RDSP). It’s something that is relatively new, created by Minister Flaherty when you worked with him, and it helps families with disabled children but I find it isn’t that well known. 
    
    Can you give a brief explanation of the RDSP, tell us know why it was created and what people should know about it? 
    
    
14. You recently joined Enriched Academy to help you with your mission of increasing financial literacy for Canadians. Can you tell us about Enriched Academy, and why you decided to join them?
    
    
15. It was great seeing Enriched Academy be so successful when it appeared on the show Dragon's Den. Can you tell us what it's been like having the Dragons as investors and advocates for Enriched Academy, and tell us a bit more about how Enriched Academy helps improve Financial Literacy here in Canada.
    
    
16. Where can we hear and learn more from you?
    
    
17. Bonus Question: Let's talk about using the RRSP vs TFSA when saving for a home. The RRSP has the Home Buyers Plan, but the TFSA is more flexible as there are less rules surrounding it. What is your preference and what should we be considering when choosing to use one vs the other.  

In Closing:

If you enjoyed the episode, please take a moment to leave an honest review and rating on iTunes by clicking the “View in iTunes” button at this link.

If you have any tips, suggestions or comments, please be sure to leave a comment in the section below. I read all the responses and look forward to hearing from you.

Also if you liked the episode please share it using the social media buttons on the left, and sign up for free below to receive all new episodes as they get released, news on giveaways, and the free guide on the Top 5 Personal Finance and Productivity Tools here in Canada!

I looking forward to hearing from you.

Kornel

RRSP season is upon us (the last day is March 1) and to help you avoid the top RRSP mistakes that Canadians make, I've brought back the financial planner that my family and I use, John Kalos.

We had a live webinar where we went over these top mistakes, and it gave everyone a chance to get their questions answered live. 

What we cover in this episode:

•How to use RRSP season to save you thousands in taxes (it ends March 1st!)

•How to make RRSPs work for you to boost your net worth, instead of just making it profitable for the banks (at your expense)

•The top tricks that the banks use to get you to invest with them
(revealed by an ex-banker).

•What you can do right now to maximize your tax return, by properly using your RRSP.

Download the webinar recording:

You can download and stream the webinar recording by going to the show notes at: Buildwealthcanada.ca/53

Ask John Your Questions:

Even though you missed the chance to ask John your questions live during the webinar, you can still chat with him 1-one-1 for free for 30 minutes and get your questions answered by going to buildwealthcanada.ca/john.

Get Your Free 1-Year Subscription to Canadian MoneySaver Magazine

Lastly, don’t forget to claim your free 1-year digital subscription to Canadian MoneySaver Magazine (Canada’s largest personal finance and investing magazine).

The magazine features Canada’s top experts on personal finance and investing, and is a great place to learn best practices, and stay up to date on changes that will impact your investments and financial situation for years to come, specifically here in Canada.

To get that, all you have to do is open up a free savings account with my favourite bank (and the bank that I personally use, EQ bank).

The reason that I personally use EQ bank, is that they have one of the highest interest savings rates in Canada. In fact, over all the years that I’ve been with them, I’ve seen them consistently be almost double the interest rate compared to other online banks, and well over double the interest rate compared to the major brick and mortar banks that we have here in Canada.  

Plus it’s free to sign up and keep an account with them, so you’re not paying a monthly fee as you do with many of the other banks out there. As a bonus you also get 5 free Interac e-transfers every month!

Because of those reasons, I’ve been with them ever since they launched in Canada years ago, and it’s where I keep my entire emergency fund and spending money.

To get the free account and a 1 year free subscription to Canadian MoneySaver magazine, just go to buildwealthcanada.ca/eq, open the free account, and once you’re done, forward any email that you get from EQ to bonus@buildwealthcanada.ca and I’ll send you a coupon code that gets you a free one year subscription to the magazine.

Enjoy, and thanks for supporting the show!

Kornel

Today we have author and Canadian investor, Larry Bates on the show. Larry is the author of the book “Beat the Bank”, where you shows (specifically for Canadians), how you can build a larger retirement nest egg by switching from high-cost mutual funds to more efficient, low-cost investment products. He also explains how you can do it in just a couple of hours per year.

He talks about some of the secrets in the investment industry that many Canadians don’t know about, he decodes some of the mystery that is prevalent around investing here in Canada, and he provides a simple, step-by-step guide to investing. Just like me, he believes that you don't need to be an expert to start investing successfully...you just need to know the basics.

Larry is a former banker turned investor advocate. He spent 35 years in banking, has since retired from that, and now spends his time increasing financial literacy for Canadians, specifically in the area of investing.

Book Giveaway!

To kick things off on a good note for 2019, I’ve arranged a book giveaway with Larry where you can enter for free for a chance to win one of 3 signed copies of Larry’s book. This is obviously for a limited time, the giveaway ends at the end of February 2019, so be sure to sign up now for a free chance to win.

To enter the giveaway, just go to buildwealthcanada.ca/beatthebank

Get Your Free 1-Year Subscription to Canadian MoneySaver Magazine

Lastly, don’t forget to claim your free 1-year digital subscription to Canadian MoneySaver Magazine (Canada’s largest personal finance and investing magazine).

The magazine features Canada’s top experts on personal finance and investing, and is a great place to learn best practices, and stay up to date on changes that will impact your investments and financial situation for years to come, specifically here in Canada.

To get that, all you have to do is open up a free savings account with my favourite bank (and the bank that I personally use, EQ bank).

The reason that I personally use EQ bank, is that they have one of the highest interest savings rates in Canada. In fact, over all the years that I’ve been with them, I’ve seen them consistently be almost double the interest rate compared to other online banks, and well over double the interest rate compared to the major brick and mortar banks that we have here in Canada.  

Plus it’s free to sign up and keep an account with them, so you’re not paying a monthly fee as you do with many of the other banks out there. As a bonus you also get 5 free Interac e-transfers every month!

Because of those reasons, I’ve been with them ever since they launched in Canada years ago, and it’s where I keep my entire emergency fund and spending money.

To get the free account and a 1 year free subscription to Canadian MoneySaver magazine, just go to buildwealthcanada.ca/eq, open the free account, and once you’re done, forward any email that you get from EQ to bonus@buildwealthcanada.ca and I’ll send you a coupon code that gets you a free one year subscription to the magazine.

Enjoy, thanks for supporting the show, and now let’s get into the episode.

Questions Asked During the Interview:

1. Tell us your story and what your new book is about?
   
   
2. What inspired you to write the book?
   
   
3. Now that you’re retired, what do you personally hold in your portfolio? 
   
   
4. Let’s talk about doing passive index investing through ETFs vs selecting individual stocks. What do you see as the pros and cons of these approaches and what do you personally do?
   
   
5. When it comes to evaluating individual stocks, a common concern that investors have is what if the stock they are considering is overvalued, and they end up overpaying for it. What precautions, due diligence and research do you personally do before investing in any particular stock?
   
   
6. If you were instead doing a much earlier retirement, like in your 30s or 40s, how would you tweak that strategy?
   
   
7. For the bond portion of your portfolio, what kind of bonds do you recommend? Long vs short term? Canadian vs international?
   
   
8. What are your thoughts on the criticisms of the S&P TSX (i.e. The Canadian Index).
   
   For index investors, should we be adjusting our portfolio for the shortcomings of this index? (i.e. The sector concentration).
   
   Adjusting for this inherently adds complexity to our portfolio, so is it worth it?
   
   
9. What are your thoughts on using bonds vs GICs vs a combination of the two, particularly for those in traditional retirement and early retirement?
   
   
10. What are your thoughts on the 4 percent rule and safe withdraw rate for traditional retirement age retirees vs early retirees?
    
    
11. Going back to your book, one of my favourite parts was how you broke down investment portfolio optimization to just 6 core areas to focus on. Can you talk about each of those?
    
12. Where can we get your book, and how can we learn more about you and see more of your work?

If you liked the episode sign up for free to receive all new episodes as they get released, news on giveaways, and the free guide on the Top 5 Personal Finance and Productivity Tools.