Unconventional Wisdom

I talk with people all the time who have an ETF or mutual fund that pays a fixed monthly amount. In most cases, they misunderstand it. Most think they are receiving regular income—but chances are, it's usually a brain fart. Many investors misunderstand how these monthly pay investments work. From covered call ETFs and dividend funds to monthly income funds, mortgage funds, T8/T6 mutual funds, and REITs, the mechanics can be confusing—and the implications even more so. In my latest podcast episode you'll learn: Why are monthly pay ETFs and funds a brain fart? How do fixed monthly pay ETFs or funds work? Why is a monthly distribution not part of your rate of return? What is the difference between a distribution and a dividend? Why is a monthly distribution not new money? Why does a monthly distribution = Selling shares? Why does a reinvested distribution = No distribution? Why do covered call funds usually have lower returns but higher tax? Why are monthly pay ETFs/funds a problem for retirement income? Why are monthly pay ETFs/funds a problem for leverage investors? How can we get out of the Brain Fart? How can you perfect monthly pay funds? What are self-made dividends? Why are self-made dividends a perfect fit for your life?

Ever wondered how you can get the money out of your RRSP with a minimum of tax? RRSP/RRIF Meltdown Strategies can allow you to withdraw from your RRSP or RRIF and have very little income show on your tax return. However, there are some tricky complications, and these strategies are not for everyone. In my latest podcast episode you'll learn: How does the RRSP/RRIF meltdown strategy help you withdraw from your RRSP with minimum tax? Why should it be called the RRIF Meltdown Strategy, not the RRSP Meltdown Strategy? Why are self-made dividends the secret to an effective RRIF Meltdown Strategy? What are the 4 tricky complications? Why does the traditional RRIF Meltdown not melt your RRIF down? What is the problem with starting it before you retire? What is the problem with starting it when you retire? What are the 3 main RRIF Meltdown Strategies? What are the 6 steps to implementing the RRSP/RRIF Meltdown Strategy effectively?

In a recent podcast episode, I talked about who the poor & wealthy are and how did they get there. Today, I'm diving deeper into one crucial aspect: how the wealthy became wealthy. Can their strategies work for you? Over the years, I've seen the full financial picture of thousands of Canadians and read countless studies on wealth building. While my clients are generally higher-income, growth-focused individuals who work with a financial plan, I've also spoken to countless others—through this blog, in person, and within my network of wealthy individuals. These insights have given me a clear understanding of who achieves financial success and the steps they took to get there. In my latest podcast episode you'll learn: How much do you need to be "wealthy"? What types of people have high net worth? What is a "productive growth asset"? Do you have to borrow to invest to become wealthy? What does the Lifecycle Investing study tell us about growing wealth? How can you copy their methods and become wealthy?

I often get asked about Lifecycle Investing and how to implement it. If you're under 40 and saving to achieve financial independence, this might be the most powerful strategy you'll ever learn. Lifecycle Investing has proven itself consistently over the last 150 years, increasing portfolios at retirement by an average of 63%. It has worked 100% of the time, and its success lies in addressing one of your biggest financial risks: "Last Decade Risk." However, it's not for everyone. This strategy often involves borrowing to invest and maintaining a high equity allocation during certain phases of your life. Think of it as a concept rather than something to execute literally. Understanding it can completely transform how you manage your money. Get your Financial Plan first. Lifecycle Investing involves thinking through the best way for you to do it over the next few decades. Creating your Financial Plan is an interactive process to help you think through all your various life options. To understand Lifecycle Investing, first you need to understand what is wrong with the conventional method of "bit-by-bit" saving. An example is the best way to understand it. In my latest podcast episode you'll learn: What is Lifecycle Investing? Why has it increased portfolios 100% of the time over the last 150 years by an average of 63%? What is "Last Decade Risk"? How does a bad decade just before retirement impact your savings? What's wrong with conventional "bit-by-bit" saving? Why do returns before age 45 have so little impact on your life? How does Lifecycle Investing finance your retirement like a mortgage finances your home? What does it mean to diversify across time? What's an example of Lifecycle Investing compared to traditional saving? How do you adapt your asset allocation for Lifecycle Investing? How can you implement it? How can it work for those who want maximum growth? Why is a financial plan crucial before starting Lifecycle Investing?

As a financial planner, I've had a unique view into the full financial picture of thousands of Canadians and have read countless studies. My experience spans clients of varying financial backgrounds, as well as countless conversations with readers of my blog, friends, and acquaintances. Although our clients may not represent the entire population—they tend to have higher incomes, are growth-focused, and always work with a clear plan—my broad exposure has helped me form a solid understanding of what wealth really is and the common ways people achieve it. In my latest podcast episode I'll cover some key questions that get to the heart of wealth. You'll learn: How much do you need to be "wealthy"? What do media stories get wrong about the wealthy and the poor? Why are people with high incomes different from people with high net worth? Is a high income important to become wealthy? Do most wealthy people inherit their wealth, or do they grow it themselves? What types of people have high net worth? What does the Lifecycle Investing study tell us about growing wealth? How can you become wealthy?

The online Canadian Financial Summit is coming up the week of October 25-27. It's the #1 personal finance event of the year. As a reader of the Unconventional Wisdom blog, here are your FREE passes for a limited time. With these FREE passes, you can watch all the talks for 48 hours. I'll be one of the speakers again this year with three talks (see below), and I'll be joined by over 35 other Canadian personal finance and investing experts such as Rob Carrick from the Globe & Mail and Ellen Roseman former Toronto Star columnist. Where else will you find all these experts in one place? With your FREE pass, each morning, all the talks for the day will be available to you for 2 days. If you want to access them forever, you can purchase an All Access Pass for $99. My three talks are: Friday, October 25: 7 Best Ideas to Optimize the Smith Manoeuvre The Smith Manoeuvre allows you to convert interest on your mortgage to tax-deductible over time and save for your retirement without using your cash flow, but not many people know about it. Ed Rempel is a fee-for-service financial planner and tax accountant with the best ideas on how to optimize the Smith Manoeuvre. Saturday, October 26: How to Easily Outperform Financial Advisors, Robo-Advisors & Index Investors Many Canadians use financial advisors, robo advisors or invest on their own with index funds. However, there might be an easy way to outperform them all. Ed Rempel is a fee-for-service financial planner and tax accountant with how this is possible. Sunday, October 27: Retiring Right Before, or during, a recession – Debunking Sequence of Returns Risk Many older Canadians fear retiring right before a recession. Ed Rempel, a fee-for-service financial planner and tax accountant who will discuss how you can create a reliable and maximum retirement income for yourself for your golden years. Some more info about the talks: Watch my 3 talks any time in a 2-day period for FREE. It's 100% online so you can stream all the talks right from your computer/tablet/phone. You don't need to go anywhere or buy anything. You can forward this to any of your friends to give them a FREE ticket. See you at the Summit! Here is a LINK to get your passes. Ed

Tax brackets for parents and seniors are way different than you think. This might be a real eye opener for some people because I think a lot of people that do some basic tax planning are doing it all wrong. In my latest podcast episode I'm going to give you a tax planning made easy using tax brackets. I'm going to show you how, some basics of tax brackets, and briefly how tax planning is done, so you can get the concept. Then we're going to talk about why tax brackets for parents and seniors are way different than you think - and how this completely changes tax planning. You'll learn: Tax planning made easy using tax brackets. Why are tax brackets for parents way different? Why is the CCB Clawback a game changer for your tax planning? What are the actual effective tax brackets for parents? Why do parents benefit more from RRSP contributions than single people? Why are tax brackets for seniors way different? What are the three main clawbacks on seniors? What are the actual effective tax brackets for seniors? How can you plan for your retirement income to be taxed at only 20%? When is a TFSA and RRSP better for you? How does a financial plan become the GPS for your life?

When planning for retirement, many Canadians rely on a government pension like OMERS (Ontario Municipal Employees Retirement System) as their foundation. Do you need savings in addition to your government pension to maintain the lifestyle you want? A buddy called me from his car and said, "I'm driving. Will I get to my destination on time?" I asked, "Where are you going and where are you now?" It's the same with the question of whether retiring with just your pension is enough. Well it depends on your lifestyle, your goals, and whether you want the freedom to enjoy big-ticket items, like vacations or regular nice dinners. The answer depends on your vision of retirement. If your goal is to replace 70-80% of your working income, you'll need to fill the gap between your pension and that target with personal investments like RRSPs, TFSAs, or non-registered savings. In my latest podcast episode, you'll see examples of people with different investment setups to help you discover what's right for you. You'll learn: What is the formula to know how much your government pension will be? What is the rule of thumb for your pension with 30 years service? How much do you need to retire with the lifestyle you want? 10 examples of a retirement plan with a full pension. Do you need to invest more conservatively after you retire? How does a Financial Plan become the GPS for your life?

In the vast landscape of personal finance, dividend investing has carved out a significant niche. Whether you're browsing through countless blogs or hearing investment advisors champion its benefits, it's clear that dividend investing is a popular choice, especially with the FIRE (Financial Independence, Retire Early) community. However, a closer look reveals that almost all the advantages claimed for dividend investing are not actually true. In this YouTube video with Barry Choi, we'll fact-check the advantages of dividend investing, explain how it is a brain fart, and introduce an alternative that is better in every way: Self-Made Dividends. You'll learn: Why is dividend investing so popular today? What are the advantages of dividend investing? Why is tax on dividends a weird formula? Fact Check: Are the advantages of dividends true? What are the problems with dividend investing? How can you perfect dividend investing? What are self-made dividends? How are self-made dividends taxed? Head-to- head: Self-made dividends vs. ordinary dividends. Life of self-made dividend investor vs. ordinary dividend investor. Why are self-made dividends better than ordinary dividends in every way? Why are self-made dividends a perfect fit for your life?

The Smith Manoeuvre is an efficient strategy to use your home equity to invest for your future without using your cash flow, while converting your mortgage into a tax-deductible debt. If you do the Smith Manoeuvre, understanding the new OSFI mortgage rules is crucial. In this podcast episode with Barry Choi, I break down what the changes mean and how they impact your strategy. You'll learn: What is the Smith Manoeuvre? What are the new OSFI mortgage rules? How will they affect the Smith Manoeuvre? What is the formula in the rules? Examples of the effect. Effect on monthly investment. Best & worst-case examples. How do you manage the process? How to minimize or eliminate the effect. Effect on Smith Manoeuvre vs. TFSA decision?

With the Canadian Financial Summit coming up at the end of October, I wanted to share over the next few weeks content that Summit attendees had access to last year. When you register you get access to talks like these, plus a myriad of other speakers who are some of Canada's top financial experts. I'll be promoting the Summit and giving away free tickets too! // When it comes to retirement, it's crucial to get the big picture right before diving into the details. Setting up your retirement income involves more than just ticking boxes; it requires a strategic approach to ensure you're financially secure throughout your retirement years. In this podcast episode, Barry Choi interviewed me about designing your retirement income effectively. You'll learn: What are the 4 steps to design your retirement income? What's Important about Money to You? How do you know when you have reached "Financial Independence"? What is "Your Number"? What are the key concepts to understand retirement income? How much can you reliably withdraw from your investments for life? What are the 3 retirement income design strategies? How do you decide which is best for you? How do you design your retirement income? How much from which source? Overview or when to start pensions, RRIF, CPP, OAS & other investments. Should you defer or commute your pension? Should you worry about high tax on your estate?

Most people struggle with money. It might feel like you're the only one who doesn't have it all figured out, but trust me, you're not alone. Over the last two months, I've had countless conversations with individuals just like you who are grappling with various financial concerns. In my latest podcast episode, I share 25 common worries and questions that I have been asked just in the last couple months, plus you'll learn the four things a financial plan can do for you.

Here are three key insights that I believe are essential for navigating the rest of the year and beyond. These insights are grounded in the principles that have guided our successful financial planning and investment strategies. The three key areas: Some timeless truths that guide our financial planning, a few observations on the markets so far this year, and an update on what we're doing in our practice to keep you on track toward your financial goals. In my latest podcast episode you'll learn: Timeless truths for financial success General principles of our investment strategy Market commentary for the first half of 2024 Current observations and insights Updates on our practice

Many people are saving for their kids' future education costs in an RESP. For some parents, it is a higher priority and they want to be able to maximize the benefits of an RESP - not just contribute the standard $2,500/year for each child. In my latest podcast episode I talk about the five hacks to maximize your child's RESP. You'll learn: How much might a 4-year degree cost in 18 years? Is it good for your child to pay for their education? What asset allocation is best to maximize your child's RESP? What are the RESP contribution rules? How do most parents contribute to their child's RESP? What are the top 5 hacks to maximize your child's RESP? What are the issues with using an In Trust For (ITF) account? Should you use a Family RESP or individual RESP?

The Smith Manoeuvre has long been a popular strategy for Canadian homeowners seeking to convert their mortgage debt into tax-deductible investment debt. However, recent tax and regulatory changes have impacted the efficacy of the Smith Manoeuvre, and further changes from the Liberal government could pose additional challenges. In my latest video I give an analysis of the current landscape and potential future threats to this investment strategy. You'll learn about: The recent changes impacting the Smith Manoeuvre, including OSFI rules and higher capital gains inclusion rates. What potential Liberal policy changes could limit interest rate deductions or increase investment taxes. A historical context of the 19 Liberal tax increases and their effects on investors. Motivations behind the Liberal government's continuous tax increases, including political strategy and economic philosophy. Legal protections and practical reasons why a direct attack on the Smith Manoeuvre is unlikely. How much of the long-term benefit of the Smith Manoeuvre is tax savings and how much is investment-related? The resilience of the Smith Manoeuvre as an effective retirement strategy even in the face of regulatory and tax changes.

Have you ever wondered how long you might live? Understanding life expectancy is crucial for planning a secure and fulfilling future. In my latest podcast episode I explore the dramatic changes in life expectancy over the past century, why it's expected to continue increasing, and how this impacts your retirement planning. You'll learn: Has life expectancy actually doubled since 1900? How fast life expectancy is increasing. Why life expectancy is expected to increase. How long you can expect to live from today. How long you should expect to be retired. What age should you plan for to be confident you will never run out of money. Why is it important to invest for growth AFTER you retire. What you need for an awesome retirement.

Deciding between a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP) can be one of the most challenging financial decisions you'll face. Each has its benefits, and the right choice depends on your unique financial situation. In this post, I'll guide you through understanding the factors that determine whether a TFSA or RRSP is better for you and how a financial plan can provide you with the precise answer. In my latest video I talk about: The secret to minimizing your lifetime tax. Understanding how tax brackets differ before and after retirement. Specific examples when a TFSA is better and when an RRSP is better. When non-registered investments might be better than an RRSP. Common errors in tax planning, like focusing on current-year tax savings instead of lifetime tax savings. The impact of government income program clawbacks on your tax bracket in retirement. The importance of knowing your future taxable income to make informed decisions. Strategies for planning your retirement income to stay in lower tax brackets. The benefits of combining TFSAs, RRSPs, and non-registered investments for tax-efficient retirement planning. The role of a financial plan in optimizing your RRSP and TFSA contributions and withdrawals.

How long should you expect to be retired? You want your money to last the rest of your life. How long will you live? What quality of life will you have? What will your lifestyle cost you when you are older? What if you could: Live longer (long lifespan). Be healthy longer (long healthspan). Have financial freedom longer (long wealthspan). In my latest podcast episode I talk about: Why it's smart to plan for a longer life. New thinking in medicine to help you live long & be healthy.. New thinking in personal finance to keep you financially free for life. What is wrong with mainstream medicine & personal finance. Create your own "Centenarian Decathlon". Why "First, do harm" is wrong for doctors. What did Hippocrates actually say? How to create plans for a long lifespan, healthspan, and wealthspan.

I recently worked with Kornel Szrejber, host of Canada's #1 financial podcast "Build Wealth Canada", on his family's financial plan, so he could feel confident about his retirement. Kornel retired in his 30s, but he was starting to feel anxious because he wanted to make sure he wasn't overspending. This podcast interview is a Q&A between the two of us where we talk about Kornel's situation, as well as other situations people may go through when they are saving for retirement. We talk about what makes a good financial plan, tax planning, and understanding how to foresee how much you can spend on things you love in your life like vacations and entertainment. After watching this interview you'll realize that when you know the lifestyle you want to live, you can live the life you want in your retirement. Here are some points we touched upon: Why it's so critical to track and itemize your household expenses (so you aren't stressed about your retirement). How to know how sustainable your lifestyle is when living off your portfolio. In which order should Kornel withdraw from his accounts for a tax-efficient retirement? Why a personalized financial plan is key to having a successful retirement. What is lifestyle creep? Why you should view expenses as discretionary and non-discretionary. Why investing is only 20% of the financial plan. The 2 overall tax strategy choices to minimize tax in your retirement. How should you plan if you earn income for a few years in your retirement. Do you retire with more peace of mind with Active or Passive investment strategies? Tax planning for a higher Canada Child Benefit. How the CCB can put you in a high tax bracket with income as low as $17,500/year. How many hours does it take to do a financial plan? Planning for long-term financial success. Enjoy! Ed

You know the basics about the Smith Manoeuvre. It's one of the most effective wealth building strategies if done by the right people in the right way over the long term. My latest podcast episode can be found on Sean Cooper's "Burn YourMortgage" podcast on YouTube and his website www.BurnYourMortgage.ca, and you can listen here too. You'll learn: Why should you consider the Smith Manoeuvre? How to know if the Smith Manoeuvre is right for you. Managing the risks. Avoiding the common errors. Tax tracking & Capitalizing. Dealing with CRA. How the Smith Manoeuvre can fit into your retirement plan. What happens if you move? What happens once your mortgage is paid off? What happens after you retire? Options – The 7 Smith Manoeuvre strategies. Effective investing with the Smith Manoeuvre Implementing the Smith Manoeuvre.

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?

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. How long do you expect to live? How do you invest? What will inflation be? Are you still working? 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.

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: What prevents you from investing too conservatively? 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?

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?