Longevity & Aging

No doubt about it: at some point we’re neither semi-retired, findependent or fully retired. We’re out there in a retirement community or retirement home, and maybe for a few years near the end of this incarnation, some time to reflect on it all in a nursing home. Our Longevity & Aging category features our own unique blog posts, as well as blog feeds from Mark Venning’s ChangeRangers.com and other experts.

Relying on Inheritance: Retirement Cash Flow Review

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By Dale Roberts, Retirement Club/Cutthecrapinvesting

Special to Financial Independence Hub

The Globe & Mail offers ongoing real-life retirement funding (cash flow plan) scenarios. They also invite a financial planner to offer their opinion. They call the series Financial Facelift. A recent article caught my eye. I thought I would give it a go using a popular free use retirement software that allows DIY retirees and near retirees to run their own plans.

The following is a cash flow review from the Globe. I was curious, so I started to enter the details at MayRetire:  a very intuitive, easy-to-use (free use) retirement cash flow calculator.

And I’ll show you how:  you can join Dale for a …

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The Financial Facelift scenario

Ennis and Kara are planning to retire soon, leaving behind joint family income of more than $340,000 a year. Ennis is 61 years old and earns $220,000 a year in senior management. His wife, Kara, is 54 and earns $120,000 in research.

Both have defined-benefit pensions. Ennis’s will be $27,960 a year, while Kara’s will pay $9,000 a year. Both pensions are only partly indexed to inflation, his 50 per cent, hers 60 per cent.

“We’ve received no shortage of advice on how to prepare for this transition, but are interested in getting an experienced, objective view on whether we can retire on our timeline or are being overly optimistic,” Ennis writes in an e-mail.

Both anticipate receiving inheritances at some point.

Their goals are to travel and help their three young adult children buy first homes when the family cottage is sold. Their share will be about $150,000.

Two of their children are still living at home.

Check out Retirement Club for Canadians

The couple’s home in an Ontario city is valued at $1.1-million, and has a $300,000 mortgage. Their retirement spending goal is $135,000 a year after tax.

The G&M asked Ian Calvert, a certified financial planner and head of wealth planning at HighView Financial in Oakville, Ont., to look at Ennis’s and Kara’s situation.

What the expert says

Ennis and Kara have a net worth of about $2.18-million, Mr. Calvert says.

“They have a healthy asset base, and their pensions are a strong component of their retirement plan,” he notes. “However, without any non-registered assets or tax-free savings accounts (TFSAs), all of their withdrawals in retirement will be treated as taxable income, with the exception of their cash savings.”

To fund their cash flow requirements, they will need to withdraw about $129,000 a year from their combined RRSPs and locked-in retirement accounts, or LIRAs, the planner says.

“Before they start consistent withdrawals from these accounts, they should consider converting their RRSPs to registered retirement income funds (RRIFs) and unlock 50 per cent of their LIRAs,” Mr. Calvert says.

Unlocking 50% of the LIRAs

The unlocking of retirement assets adds more flexibility: They are moving assets out of LIRAs, which have annual withdrawal maximums, into RRSPs, which do not.

Moving assets from RRSPs to RRIFs makes sense because they are entering their withdrawal phase and need consistent income from these accounts.

“It’s important to remember that the 50 per cent unlocking is a one-time option that should be completed at age 55 or older when you are completing the transfer from a LIRA to a life income fund (LIF) and starting to withdraw.”

The couple’s $129,000 withdrawal, plus combined pension income of $37,000 a year, will give them a total family income of $166,000 a year, less $31,000 in income taxes. This will meet their after-tax spending target of $135,000.

“The required annual withdrawals from their retirement savings represent about 10 per cent of their portfolio,” the planner notes. “It would be challenging to maintain their capital at this withdrawal rate, and they should expect a decline in capital over time.”

Fortunately, they have two items that will reduce the withdrawal rate. “First, they are expecting a combined inheritance of about $1.3-million in the next few years,” Mr. Calvert says. “Second, they will both be getting Canada Pension Plan and Old Age Security benefits.”

When their inheritance comes through, they should use part of it to fund their TFSAs to the maximum available limit at the time, Mr. Calvert says. Currently, the lifetime maximum TFSA contribution is $109,000 each, increasing by $7,000 each year.

This will leave a substantial amount to be invested in their non-registered portfolio.

“Investing the remaining non-registered funds to generate steady and reliable income would be beneficial for a couple of reasons,” the planner says. With $1-million or so to invest, “they should build a portfolio structure that not only will participate in growth, but will generate a consistent dividend yield of about 3.5 per cent, or $35,000 a year.”

Relying on inheritance

The inheritance money will give them much more flexibility, the planner says. They will have funds they can access without adding to their taxable income. However, the new investment income from the funds they can’t shelter in their TFSAs will be reported and taxed every year.

“Once their inheritance is received, they could withdraw $35,000 per year from the non-registered portfolio and reduce the withdrawals from their RRSPs and LIRAs to about $89,000 a year. This, combined with their pension income of about $38,000 (with inflation), would bring their total income to about $162,000 year while reducing their taxes to $27,000 per year, he says.

When to take CPP and OAS will depend on the timing and amount of their expected inheritance, the planner says. Without the inheritance, starting their benefits at age 65 would help reduce the annual withdrawals from their portfolio, the planner says.

Because of the seven-year difference in their ages, Ennis and Kara have time to think about when to take benefits. “They could take a hybrid approach,” the planner says. “For instance, if no inheritance was received by 2029 when Ennis turns 65, they could start his CPP and OAS payments to reduce the withdrawals from their savings,” he says. “They would still have lots of time to make the decision for Kara because she won’t turn 65 until 2037.”

They also ask about helping their children. “The challenge in their current position is they don’t have the after-tax capital to do it today,” Mr. Calvert says. “Large withdrawals from their RRSPs would not be tax-efficient and would further hasten the decline in their capital,” he says. “Their only other option is to pull equity from their house, which would come with additional debt servicing.”

The situation

The people: Ennis, 61, Kara, 54, and their three children, 20, 24 and 26.

The problem: Can they afford to retire soon and still meet their retirement spending goal?

The plan: A lot depends on the anticipated inheritance. They’d be drawing heavily on their registered savings in the early years. Ennis could start his government benefits at 65 to keep the withdrawals to a minimum. Continue Reading…

Your 12 Good Years: Retirement Manifesto

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RetirementManifesto.com

By Dan Haylett and  Fritz Gilbert, TheRetirementManifesto.com

Special to the Financial Independence Hub

On rare occasions, I read something so powerful I have to share it here.

Today is one such occasion.

Dan Haylett is one of my favorite writers, and a heckuva nice guy.  His podcast, Humans vs. Retirement, is the #1 retirement podcast in the UK for good reason. (Sign up for his free weekly email here)

While his podcast is great, I can’t get enough of this guy’s writing.  Every week, I read his email as soon as it arrives.  Recently, he published “Your 12 Good Years” on his Substack feed.  The following comment from a reader is indicative of how good it is:

“Maybe, if not probably, this is the best retirement article I’ve ever read.”

As soon as I read it, I asked Dan if he’d allow me to republish it here.

Fortunately, he said yes.

Prepare to be challenged by some of the best writing you’ll ever read, from one of the best minds in the business….

The healthy, active years you have left are shorter than you think Share on X

Your 12 Good Years

Here’s a number that should change how you think about retirement: 12.

Not 30. Not 25. Not even 20.

12.

That’s how long the average healthy 60-year-old has before their mobility, energy, and independence start to significantly decline. Not before they die… before life gets noticeably harder.

You might live to 90. You might even make it to 100. But the version of you that can hike the Inca Trail, chase grandchildren around a park, travel independently, or even just get through a full day without fatigue? That version has a shelf life.

And it’s shorter than you think.

The Data Nobody Wants to Hear

I want you to be clear about what I’m talking about here. This isn’t about morbidity or scaring you into action. This is about healthy life expectancy, the years you have before chronic illness, disability, or physical limitation becomes a daily reality.

In the UK, a 60-year-old man can expect to live, on average, to around 84. A 60-year-old woman to around 87. Those are the headline numbers. The ones that make retirement planning calculators tell you to prepare for 25-30 years.

But those numbers don’t tell you that most of those later years aren’t healthy years.

Data from the Office for National Statistics shows that healthy life expectancy (the years lived in good health without limiting illness or disability) ends much earlier. For someone who is 60 today, you’re looking at roughly 12-15 more years before health limitations start to intrude in meaningful ways.

That doesn’t mean you drop dead at 75. It means that by your early to mid-70s, things start to shift. Energy declines. Recovery from illness takes longer. Long-haul flights become less appealing. All-day adventures turn into half-day outings. The body you’ve been living in for six decades starts sending you clearer signals about what it will and won’t tolerate.

Research on retirement spending patterns backs this up. The Institute for Fiscal Studies found that retirees’ spending on travel and leisure increases through their 60s, peaks around age 75, and then declines, not because people run out of money, but because they run out of the physical capacity to do the things that money would buy.

You have more time than you have energy. More years than you have vitality. And if you don’t understand that distinction, you’ll waste the good years preparing for the declining ones.

What “Good Years” actually means

Let me be specific about what changes.

In your 60s and early 70s, if you’re reasonably healthy, you’re still you. You can travel. You can be spontaneous. You can handle long days. You can manage your own life without help. You have the energy to start new projects, learn new skills, and take on challenges.

You’re not invincible (you’re not 30), but you’re still fundamentally capable.

By your mid 70s and into your 80s, things shift. Not dramatically. Not all at once. But gradually, consistently, undeniably.

You might still travel, but not as far or as often. You might still be active, but you need more recovery time. You might still be independent, but you start needing help with things that used to be trivial, like changing a lightbulb, carrying heavy shopping, and navigating airports.

The things you do become smaller. More local. More cautious. Not because you’ve lost your spirit, but because your body has started setting the terms.

And this isn’t pessimism … it’s just biology. Muscle mass declines. Bone density decreases. Balance becomes less reliable. Chronic conditions accumulate. The resilience you took for granted starts to fray.

None of this means your later years are worthless or joyless. Many people find deep satisfaction and peace in their 80s and beyond. But they’re different years. Quieter. More reflective. Less physically expansive.

The good years, the ones where you still have the physical capacity to do most of what you want, are finite. And they’re shorter than the total lifespan numbers suggest.

The Spending and Activity Decline

Here’s where this gets practical.

One of the most robust findings in retirement research describes how retirees’ spending patterns change over time.

Spending is relatively high in the first few years of retirement, the “go-go years.” You’re active, you’re travelling, you’re finally doing all the things you deferred while working. Then it declines through the middle years, the “slow-go years,” as energy and interest naturally wane. And then it potentially rises a bit again in very late life, the “no-go years,” as healthcare and care costs may come into the equation.

But here’s what that misses … the decline in spending isn’t driven by frugality. It’s driven by physical limitation.

People in their late 70s and 80s aren’t spending less on holidays because they’ve suddenly become careful with money. They’re spending less because long-haul flights are exhausting. Because hotels without lifts are a problem. Because they don’t have the stamina for full days of sightseeing anymore.

The spending decline tracks the activity decline. And the activity decline tracks the erosion of those 12 good years.

The Trap of Deferral

The cruel irony is that most people spend the first decade of retirement living as they did in the last decade of work: carefully.

You saved for 40 years. You delayed gratification. You were prudent, responsible, cautious. And that got you here. It built the nest egg. It secured your future.

But if you keep living that way, you’ll waste the very years you saved for.

I see this constantly. Clients in their early 60s, financially secure, agonising over whether they can “afford” a holiday. Whether it’s “sensible” to upgrade the car. Whether they should help their grandchildren with something meaningful.

They’re optimising for a 30-year retirement. Planning as if every year is equivalent. Treating their 60s the same as their 80s.

But they’re not the same.

Your 60s are not a rehearsal for your 80s. They’re the main event. And if you don’t spend (not recklessly, but intentionally) during the years when you can still fully enjoy it, you’ll reach 78 with a big bank balance and a long list of regrets.

The things you can do at 65, you often can’t do at 75. The trip that sounds ambitious but achievable today might be off the table in a decade. The time with grandchildren while they’re young and you’re energetic doesn’t come back. Continue Reading…

Retirement Is getting Longer. Your Portfolio should too.

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Retirement may last longer than you expect. The question is: is your portfolio built to keep up?

Image courtesy BMO ETFs/Getty Images

By Alain Desbiens, Vice-Chair BMO ETFs

(Sponsor Blog)

Canada is undergoing a profound demographic transformation that will influence the nation’s economic trajectory and long‑term investment landscape for decades to come. By 2036, Canadians aged 65 and older will account for roughly 23% of the population, up from approximately 19% today. 1

This aging shift is propelled by three powerful forces: rising life expectancy, persistently low birth rates, and immigration serving as the country’s primary source of population growth. Together, these drivers are reshaping not only the size and composition of Canada’s population but also the way investors and financial professionals must approach planning and portfolio construction.

For investors, these demographic changes create a dual reality. On one hand, the economy faces challenges such as higher healthcare and social‑support spending, and increasing strain on retirement income systems. On the other hand, new long‑horizon opportunities are emerging.

Sectors tied to aging populations, innovation in healthcare, longevity planning, and intergenerational wealth transfer all stand to benefit. Exchange‑traded funds (ETFs), with their cost‑effectiveness, diversification, and transparency, offer an efficient toolkit for capturing these evolving trends.

 Key Demographic Trends  

1.) Aging Profile & Generational Mix

Baby Boomers still represent about one quarter of Canada’s population, but by 2029, Millennials are projected to surpass Boomers in absolute numbers. 2 This generational shift will reshape demand across housing, consumption, and financial services. Millennials tend to prefer digital-first advice, sustainable investing, and simple yet sophisticated products — including ETFs — while Boomers continue to prioritize income generation, capital preservation, and tax‑efficient3 decumulation strategies. This changing balance in generational influence will increasingly dictate the types of investment solutions that gain traction in the market.  

2.) Retirement Wave

Canada is entering a period where record numbers of Boomers are exiting the workforce and see increasing need for accumulation and decumulation strategies, and a higher demand for financial, will and decumulation strategies.  

3.) Longevity Realities

Canadians are living longer than ever before, with meaningful implications for retirement planning.

  • Women 65+: Over half are expected to live to age 90. 4
  • Men 65+: More than half reach age 90 as well, though only about 39 per 1,000 do so without a major critical illness. 5
  • FP Canada/IQPF: A 50-60-70‑year‑old has roughly a 25% probability of living to age 94 (men) or 96 (women).6 

This extended lifespan introduces significant longevity risk: the risk of outliving one’s capital. Financial plans must now be stress‑tested for longer retirement horizons, rising living costs, and variable health outcomes.  

4.) Rising Costs for Aging‑in‑Place & Care

Healthcare inflation, long‑term care, and home‑care services are expected to grow sharply. These realities underline the need for specialized insurance solutions, inflation‑aware portfolios, and steady income vehicles that can sustain retirees across multi‑decade retirement periods.  

5.) Wealth Distribution & Investor Segmentation

Canada is on the cusp of a major wealth transition:

  • Gen X is set to surpass Boomers in total net worth. 7
  • An estimated $450 billion will transfer to Gen X over the next decade. 8
  • Total household wealth is projected to reach $10 trillion by 2030, reshaping investor behavior, risk profile8, and demand for advice.9  

The Bottom Line

Canada’s aging demographic is more than a statistic: it is a structural force that will shape markets, spending patterns, and investment requirements. Investors who proactively position for these changes can build portfolios that are both resilient and growth‑oriented. With their flexibility, transparency, and broad exposure to demographic‑driven themes, ETFs remain one of the most effective vehicles for navigating this new era.  

ETF Investment Opportunities  

1.) Income Solutions for Retirees

• Longer lifespans + market volatility = demand for stable, tax-efficient income

• Covered Call ETFs: Combine dividends + option premiums for predictable monthly cash flow

2.) Simplified Diversification

• Asset Allocation ETFs (BMO Conservative ETF – ZCON, BMO Balanced ETF – ZBAL, BMO Growth ETF – ZGRO,BMO All-Equity ETF – ZEQT): All-in-one portfolios with global diversification and automatic rebalancing

• Risk profiles: Conservative (40% equity) → Aggressive (100% equity)

3.) Tax-Efficient Solutions

• T Series ETF: Systematic withdrawals for retirees, combining ETF efficiency with predictable cash flow

• Helps manage longevity risk and optimize after-tax returns  

ETF Strategy Highlights

  • Covered Call ETFs
    • Benefits: Higher yield, volatility reduction, tax efficiency
    • Innovative options by geography or sector

If retirement is on the horizon, now is the time to look beyond when you plan to stop working and focus on how long your portfolio will need to support you. Longer lifespans mean portfolios must balance growth, income, and flexibility before the first paycheque replacement ever begins. Reviewing your asset mix, understanding your future income needs, and considering simple, diversified ETF solutions today can help reduce stress and create more confidence tomorrow. The years leading up to retirement aren’t just a finish line, they’re the foundation for decades ahead.

Want to learn more? Join Alain Desbiens and host Michelle Allen as they explore why longer retirements demand smarter strategies: inflation-aware portfolios and steady income that lasts decades, not just years. Listen to the podcast episode now!

Fund name YTD 1 mo 3 mo 6 mo 1 Y 2 Y 3 Y 5 Y 10 Y Since Inception Inception date
BMO All-Equity ETF
ZEQT		 1.98% 1.98% 2.42% 12.97% 17.42% 22.76% 19.02% — — 13.97% Jan 24, 2022
BMO Balanced ETF (ZBAL) 1.34% 1.34% 1.28% 8.68% 11.37% 14.96% 12.52% 8.08% – 8.70% Feb 12, 2019
BMO Conservative ETF(ZCON) 1.02% 1.02% 0.71% 6.56% 8.40% 11.13% 9.29% 5.18% – 6.27% Feb 12, 2019
BMO Growth ETF(ZGRO) 1.66% 1.66% 1.85% 10.82% 14.39% 18.87% 15.78% 11.02% – 11.13% Feb 12, 2019

Source: BMO GAM as of February 2026

Sources :

1: Stats Canada : Alternative format – Portable Document Format (PDF)

2 : Stats Canada : A generational portrait of Canada’s aging population from the 2021 Census

3:Tax Efficient: as compared to an investment that generates an equivalent amount of interest income.

4: Globe and Mail : Here’s how long Canadian women can expect to live in retirement – The Globe and Mail

5: Globe and Mail : What are the odds of a man reaching 100 in reasonably good health? – The Globe and Mail

6: InstituteFP-PAG2025

7: Generation X may soon beat the boomers in household wealth | Financial Post

8: Risk Profile – Comprised of a client’s risk tolerance (i.e., client’s willingness to accept risk) and risk capacity (i.e., a client’s ability to endure potential financial loss).

9: Household assets to approach $10 trillion by 2030 | Advisor.ca

8: Household assets to approach $10 trillion by 2030 | Advisor.ca

Alain Desbiens is Vice Chair, BMO ETFs. Alain brings more than 30 years of financial services experience to his new role. A seasoned financial expert and former broker, Alain has raised awareness of ETF benefits among advisors, direct and institutional clients through both individual discussions and impactful presentations. Alain is also active in multiple media formats helping provide insights on both the industry and investments. Over his career, Alain held roles as wholesaler, sales manager, branch manager, and investment advisor. He is a graduate of Laval University with a BA in Industrial Relations and has been recognized multiple times at the Canadian Wealth Professional Awards, including winning “Wholesaler of the Year” Award three times.

Disclaimer:

Commissions, management fees and expenses all may be associated with investments in exchange-traded funds. Please read the ETF Facts or prospectus of the BMO ETFs before investing. Exchange-traded funds are not guaranteed, their values change frequently and past performance may not be repeated.

Distribution yields are calculated by using the most recent regular distribution, or expected distribution, (which may be based on income, dividends, return of capital, and option premiums, as applicable) and excluding additional year end distributions, and special reinvested distributions annualized for frequency, divided by current net asset value (NAV). The yield calculation does not include reinvested distributions. [Bold]Distributions are not guaranteed, may fluctuate and are subject to change and/or elimination. Distribution rates may change without notice (up or down) depending on market conditions and NAV fluctuations. The payment of distributions should not be confused with the BMO ETF’s performance, rate of return or yield. If distributions paid by a BMO ETF are greater than the performance of the investment fund, your original investment will shrink. Distributions paid as a result of capital gains realized by a BMO ETF, and income and dividends earned by a BMO ETF, are taxable in your hands in the year they are paid. BOLDYour adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base goes below zero, you will have to pay capital gains tax on the amount below zero.

Cash distributions, if any, on units of a BMO ETF (other than accumulating units or units subject to a distribution reinvestment plan) are expected to be paid primarily out of dividends or distributions, and other income or gains, received by the BMO ETF less the expenses of the BMO ETF, but may also consist of non-taxable amounts including returns of capital, which may be paid in the manager’s sole discretion. To the extent that the expenses of a BMO ETF exceed the income generated by such BMO ETF in any given month, quarter, or year, as the case may be, it is not expected that a monthly, quarterly, or annual distribution will be paid. Non-resident unitholders may have the number of securities reduced due to withholding tax. Certain BMO ETFs have adopted a distribution reinvestment plan, which provides that a unitholder may elect to automatically reinvest all cash distributions paid on units held by that unitholder in additional units of the applicable BMO ETF in accordance with the terms of the distribution reinvestment plan. For further information, see the distribution policy in the BMO ETFs’ prospectus.

This article may contain links to other sites that BMO Global Asset Management does not own or operate. Any content from or links to a third-party website are not reviewed or endorsed by us. You use any external websites or third-party content at your own risk. Accordingly, we disclaim any responsibility for them.

BMO ETFs are managed by BMO Asset Management Inc., an investment fund manager, a portfolio manager, and a separate legal entity from Bank of Montreal.

“BMO (M-bar roundel symbol)” is a registered trademark of Bank of Montreal, used under licence.

How Fritz Gilbert spends his time in Retirement

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By Fritz Gilbert, TheRetirementManifesto.com

Special to the Financial Independence Hub

I’ve had many of you ask how I spend my time in retirement, and when I realized I spend only 0.23% of my time managing our money, it made me ask myself the same question.

What do I do with all of my time now that I’m retired?

Today, I’ll answer that question.

As a bonus, I’ve made a “Before vs. After” comparison, showing how my time allocation has changed since retirement. It’s an interesting look at what areas have replaced the time previously consumed by commuting and work.  This one’s for you, Chuck (hey, you’ve read every one of my articles, you deserve an answer. Thank you for your loyalty!)

It’s the first time I’ve taken on this task, and it’s been enlightening.

I trust you’ll find it of interest …

How I spend my Time in Retirement

Time is an interesting concept in retirement.

The loss of the structure previously imposed by paid work adds a new element to the consumption of time.  Whereas a large chunk of my time was once consumed by work and commuting, today it’s entirely available to use as I choose.

24 hours a day.  7 days a week.

(If you’re curious, that’s 8,760 hours per year.  Actually, it’s 8,760 hours even if you’re not curious.  Wink.)

That’s imposing to a lot of pre-retirees, as well it should be.  I encourage any of you who’ve not yet crossed The Starting Line to spend some of your precious time thinking about how you’re going to use it when you get to “the other side”.  It’s an important question, and one of the most important you need to ponder to ensure a smooth transition into retirement.

With that as my introduction, here’s how I spend my time in retirement…

how i spend my time in retirement pie chart

How I spend my Time (“Awake Time”)

For the sake of simplicity, I’m omitting sleep from the pie chart above.  For the record, I’ll touch on sleep first, then get into how I spend my “Awake Time”.

Sleep – 2,920 Hours/Year (33% of Total Time)

On average, I sleep about 8 hours/night.  I typically go to bed ~10:00 pm, and wake between 6:00 – 7:00 am.  Assuming my math is correct, that means I sleep 2,920 hours/year, an increase of 365 hours versus my working years.  For you math geniuses out there, that equates to 1 hour of additional sleep per night since I’ve retired.  Yep, that seems about right.

Now let’s get on to the fun stuff, which consumes the remaining 67% of “Awake Time” in a year.  For consistency, I’ll present these in the same order as shown in the pie chart above, starting with exercise.

Swimming for exercise in nearby Lake Blue Ridge

Exercise – 858 Hours/Year (15% of “Awake Time”)

I like a bit of structure to start my day and every Mon/Wed/Fri that means arriving at the gym by 7:15 for Spin Class.  I love Spin, and I know I’ll be much more consistent with my exercise if I have a scheduled class to hold me accountable.  Following Spin, I take a Cross-Fit class, which focuses more on interval and weight training.  Combining the two makes a great start to the day, and I’m ready to take on the world when I return home shortly after 9:00 am.

In addition to the structured classes at the gym, I walk our dogs for 1 – 1.5 hours every day.  We have a scenic 1.3-mile loop in the woods behind our cabin, and I typically walk it twice a day.  When the weather is nice, I’ll throw in a weekly swim, or a mountain bike ride, or a hike.  If we’re spending time at our condo in Alabama, I’ll add some morning runs to my routine.  I like to mix it up, but always make exercise part of the structured component to my day.

Meals –  548 Hours/Year (9% of “Awake Time”)

My wife and I make it a routine to have lunch and dinner together.  Breakfast is a more haphazard affair, typically a quick bowl of cereal before I head to the gym, or a more leisurely time with several cups of coffee on a “non-gym” day.  Assuming ~1.5 hours/day for all meals combined, I spend 548 hours/year eating.

spending time in retirement with family
Family time with my granddaughter = Priceless.

Family – 1,152 Hours/Year (13% of “Awake Time”)

I spend 850 hours more time with my family each year now that I’m retired than I did when I was working.  The vast majority of that increase comes from a lifestyle decision we made when we Purchased a Second Home in Retirementshortly after our daughter moved from the Pacific Northwest to Southern Alabama.  As mentioned in that post, we’re now spending a week every month in our Alabama condo, with our primary focus being quality time with our daughter and 3-year-old granddaughter.  We wouldn’t trade that time for anything, and consider it one of the greatest joys in our current retirement lifestyle.

time in retirement walking

Entertainment – 802 Hours/Year (14% of “Awake Time”)

According to FitBit, I’ve averaged 13,330 steps over the past month, only falling below 10k steps twice in that timeframe.  In writing this post, I also discovered that I’ve walked 4,478,654 steps (1,989 miles) in the past year,  an average of 12.3k per day.  Bottom Line:  I don’t sit around much during the day…

After my typically busy day in retirement, I have no problem admitting that I like to take it easy in the evenings.  Every night after dinner, my wife and I like to “chill out” in front of the TV with our dogs in our laps.  We’ve earned that right, and I make no apologies in announcing to the world that I spend the majority of my “9% Entertainment Time” watching Netflix, the news, documentaries, etc.  We also seldom miss an Atlanta Braves game and enjoyed watching “our Braves” win the World Series this year!  We also go out with friends more frequently now that we’re retired, and that’s included in the number. Continue Reading…

Can you Pursue Financial Independence without giving up Travel?

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By Devin Partida

Special to Financial Independence Hub

The Financial Independence, Retire Early [FIRE] movement has gained awareness and popularity. It’s commonly believed that to achieve this highly-sought-after goal, young adults must live an immensely frugal life, guided by constraints and a “suffer now, enjoy later” mentality that results in the restriction of leisure like traveling. However, maintaining Financial Independence while traveling is entirely possible with a proper strategy.

The Perceived Conflict of Financial Independence vs. Travel

Findependence Hub CFO Jon Chevreau and his wife Ruth avoided some of Canada’s harsh winter by living (and doing a little work) in Malta. Here are the island’s famed colourful boats.

People often feel that travelling can drain budgets and delay retirement. This mindset comes from the perception that travel entails expensive hotels, premium flights and fancy dinners. Instead, try viewing travel as an investment in your well-being and growth.

As enjoyable as exploring new locations and sightseeing are, the heart of travelling is much deeper. Stimulating the brain in new ways can release chemicals like serotonin, lower cortisol levels and improve cognitive thinking skills.

Traveling offers opportunities to broaden perspectives and engage in self-discovery, which is far more valuable than a weekend at a 5-star hotel. By aligning your travels with core financial values, it becomes sustainable and a solid return on investment.

Strategies for Reducing Travel Expenses

Cutting down on travel costs starts with budgeting. Before you even board a flight, you should have decided how much you’re willing to spend on your trip, which is something that differs from person to person based on personal goals and circumstances. Establishing a strict daily budget provides the data required to adjust spending patterns in real time.

Jon & Ruth spent February in this AirBnB in Malta. Rates are lower when you commit to a whole month. Save more eating in with a fully equipped kitchen.

Implementing discipline in your travel spending prevents minor costs from eroding an investment portfolio over the long term. Primary strategies for minimizing the three largest travel expenses include:

  • Alternative accommodations: Choosing alternative lodging accommodations has become a popular way of reducing traveling costs. Notable options are house sitting, pet sitting and hostels. Alternatively, volunteering opportunities often provide free accommodation.
  • Off-season transit: Booking flights and transit during the off-season is a great way to reduce costs without compromising the quality of the experience. Booking flights months in advance often results in lower
  • Local logistics: Prioritize local transit systems and walking over private rentals or ride-sharing services.

Generating Income while Travelling

Building capital, whether actively or passively, is another great way to achieve Financial Independence while travelling. An increasingly popular option is through professional mobility or remote work. Individuals in fields like software development, design and consulting can continue to work and maintain consistent earnings regardless of location.

Jon Chevreau doing a little work over lunch in Rome last week, taking advantage of a restaurant’s free wi-fi to promote the site’s latest blog.

In addition to having a location-independent business, finding passive income streams is a great way to earn while traveling. In today’s digital age, people can start an e-commerce business on their phones, enabling them to be anywhere in the world and still maintain a steady flow of capital.

For those who aren’t entrepreneurial, investing to generate passive income is a great alternative. Even if you don’t have a finance degree, there are plenty of resources online regarding simple and safe long-term investing strategies. These could include ETFs, dividends or real estate.

Being a digital nomad has become a highly desirable aim for many professionals in the modern age. The key to this approach succeeding is finding a way to balance fun and productivity while traveling, and setting the right boundaries where necessary.

Achieving Financial Independence while Travelling

Balancing financial freedom with travel is a matter of strategic design rather than sacrifice. The key to achieving longevity is letting go of extremes, finding balance in long-term health planning and collecting life experiences. By prioritizing mindful choices, it is possible to build a life of liberty that begins today, not in a few decades.

Devin Partida is the Editor-in-Chief of ReHack.com, and a personal finance writer. Though she is interested in all kinds of topics, she has steadily increased her knowledge of the intersection of finance and technology. Devin’s work has been featured on Entrepreneur, Due and Nasdaq.