All posts by Financial Independence Hub

Financial Planning for a Solo Retirement you didn’t expect

Posted By Financial Independence Hub | June 29, 2026

By Devin Partida

Special to Financial Independence Hub

Retirement doesn’t always unfold the way you imagined, and that’s not necessarily a bad thing. While many people envision spending their later years with a long-term partner, life can take unexpected turns. Whether you’ve experienced a gray divorce or simply found yourself entering your golden years on your own, a solo retirement can feel like unfamiliar territory.

Create an Action Plan

Solo retirement has increasingly become a reality, with about 28% of Americans age 65 and older living alone. However, the good news is that retiring solo doesn’t mean sacrificing financial security or personal fulfillment. In fact, it can be an opportunity to refocus your priorities to reflect your unique needs. You just need to take actionable steps to adapt your financial plan to this new reality, which can help you gain peace of mind.

1. Revisit your Financial Numbers

The first step is updating your financial assumptions, as you might experience the extra costs of living alone or single’s tax, as it’s more commonly known. Many retirement plans are built around shared expenses and savings goals and the expectation that two people will contribute to household finances.

As such, start by reviewing your retirement budget and identifying what has changed. Consider expenses like housing, healthcare and insurance. Some costs may be lower when living alone, allowing you to reallocate funds to your top priorities.

This is also a good time to update your income projections and withdrawal strategy, as having an accurate picture of your finances can help you make thoughtful decisions about spending and future planning.

2. Adjust your Investment Strategy

A solo retirement can be an opportunity to take a fresh look at your investments and ensure they support the life you want to build. Rather than focusing solely on what has changed, consider how your portfolio can be adapted to provide both stability and continued growth throughout retirement. Review your asset allocation to ensure it aligns with your current needs and balances growth investments to protect against inflation.

At the same time, avoid making emotional investment decisions during major life transitions. For example, about 36% of adults getting divorced are aged 50 or older. This could lead to emotional investment decisions that later cause uncertainty and instability.

This may also be an ideal time to create or refine a comprehensive retirement income plan. Coordinating sources such as Social Security, pensions and investment withdrawals lets you build a predictable income stream that supports your lifestyle and reduces uncertainty.

3. Build a strong Support Network

One of the greatest advantages of planning for a solo retirement is the opportunity to intentionally create a network that supports both your financial well-being and your quality of life. While retirement planning often focuses on savings and investments, the relationships and resources around you can be just as valuable.

If you’ve experienced gray divorce, laying your grievances to rest can heal your family and make the path forward much simpler. Take time to strengthen connections with the people and communities that enrich your life, as family, friends and neighbors can play meaningful roles in helping you stay engaged and supported.

This is also a great time to organize your legal and financial documents. Review powers of attorney, healthcare directives, and beneficiary designations to ensure your wishes are documented and that trusted individuals are prepared to help. This planning brings peace of mind and confidence in retirement.

4. Rethink your Living Arrangements

An unexpected solo retirement can be the perfect opportunity to create a living situation that better supports the lifestyle you want in the years ahead. While housing is often one of the largest retirement expenses, it can also be one of the most flexible parts of your financial plan. Continue Reading…

Inside ETF liquidity: A market maker’s guide to better execution

Posted By Financial Independence Hub | June 26, 2026

Understanding how Exchange Traded Fund (ETF) liquidity works can help investors execute trades more efficiently, avoid common pitfalls and deliver better outcomes. Below, we debunk myths on true liquidity and share best practices:from spreads and execution timing to block trades and price deviations.

By Hilly Cutler, BMO Global Asset Management

(Sponsor Blog)

1.) What actually determines an ETF’s liquidity?

Contrary to popular belief, it’s not the number of shares you see on screen.

For ETFs, real liquidity comes from its underlying basket: the stocks, bonds, or commodities inside the ETF.

If the underlying securities are highly liquid, the ETF is typically highly liquid too, even if its on‑screen volume looks small.

2.) So if an ETF trades only a few thousand shares a day, is it illiquid?

No. That’s one of the biggest misconceptions.

Low trading volume only tells you how frequently investors trade it: not how liquid it is.

If the underlying securities trade millions or billions per day, market makers can easily create or redeem ETF units to facilitate any size trade.

Think of the ETF as a doorway to the underlying market: The doorway might look narrow (low volume), but the room behind it (underlying liquidity) could be huge.

3.) What’s the role of a market maker?

We’re responsible for:

Providing continuous two‑sided quotes (bid/ask).
Making sure spreads are fair relative to the underlying securities.
Stepping in to facilitate larger trades.
Creating or redeeming ETF units when supply/demand shifts.

Our job is to make liquid markets for ETFs and keep them trading smoothly, regardless of who’s buying or selling.

4.) Why do ETF spreads widen sometimes?

Spreads move mainly because the underlying market moves.

Common reasons spreads widen:

Opening minutes of the trading day.
Volatility spikes (macro events, economic data flow, central bank announcements).
Underlying markets closed (e.g., ETFs holding international stocks, or U.S. equity ETFs when their market is closed for a holiday and the Canadian market is open).

It’s rarely because “the ETF is broken”: it’s just reflecting what’s happening underneath.

5.) When is the best time of day to trade ETFs?

Generally:

We suggest avoiding trades in the first 10–15 minutes after the market open.
- This allows enough time for the underlying securities in the fund to start trading.
We suggest avoiding trades in the last 10 minutes before the market close.
- Underlying portfolio movement can be volatile at the end of the day.
Instead, trade during middle-of-the-day hours when underlying markets are fully open and spreads are tightest.
- When the underlying market is closed, the underwriter will have to model the price, and will therefore set a slightly wider spread to reflect their increased risk on the trade.

If the ETF holds North American stocks, trade during full Canada and U.S. market hours.

If an ETF holds international stocks, since many European markets generally close around 11:00am (ET), best practice is to trade before then. It should be expected that bid-ask spreads will widen out once European markets close.

6.) Should investors use market or limit orders?

Always use limit orders. Market orders expose you to whatever price the next trade happens to hit: especially risky in thin markets or volatile times.

A limit order doesn’t mean you won’t get filled. It just means you control the price.

That said, if the investor is looking for an immediate fill on the buy, best to enter at the ask. If they are prepared to wait until their price is hit, they can enter a limit order priced at the mid-point of the bid-ask spread.

7.) What causes the ETF price to deviate from NAV?

The ETF often doesn’t “deviate” (or in other words, trade at a large discount or premium to its NAV): it’s actually showing the fair value of the underlying securities.

In Canada, ETF NAVs are calculated once per day, at market close. ETF prices, on the other hand, update every second.

If the ETF holds U.S., European or Asian securities, and those markets are closed, the ETF’s traded price will reflect new information (futures, ADRs, macro data) that the stale NAV cannot. Continue Reading…

Why your Portfolio needs more than Growth Stocks

Posted By Financial Independence Hub | June 24, 2026

Nearing financial independence? Growth stocks alone may leave gaps. Find out how a broader, more diverse portfolio can support income and stability.

By Dan Coconate

Special to Financial Independence Hub

As you move closer to financial independence, understanding why your portfolio needs more than just growth stocks can help you make clearer decisions.

Growth stocks often attract attention during strong markets because investors expect future earnings to increase over time.

While that potential can be valuable, these investments can also experience drastic declines when market conditions change. A portfolio that includes different sources of return may provide a steadier experience and help support your goals through a wider range of economic environments.

Growth Stocks do not always Lead

Growth stocks often perform well when investors are optimistic about the future and willing to pay more for expected earnings. The challenge is that market leadership shifts over time, and periods of strong growth-stock performance are often followed by stretches when other investments take the lead.

As you approach Financial Independence, relying too heavily on one investment style can increase your exposure to timing risk. If market conditions turn negative just as you begin making withdrawals, you may be forced to sell investments at lower prices than expected.

Income adds more Breathing Room

Many Canadians pursuing Financial Independence want their investments to do more than simply grow in value. They also want their portfolio to support everyday spending needs without requiring constant asset sales. Investments that generate income can play an important role in creating that flexibility.

Rather than depending entirely on future appreciation, a diversified portfolio can offer a combination of growth potential and ongoing cash flow. This approach may help you feel more comfortable during market downturns.

Inflation Changes the Picture

Inflation directly affects your lifestyle by gradually increasing the cost of living. Even modest inflation can reduce purchasing power over a long Financial Independence journey. For that reason, some investors explore additional ways to diversify their portfolios.

Discussions around real assets and investing in commodities often arise because these investments may respond differently to inflationary pressures. The goal is not to own everything, but to understand whether your portfolio has enough variety to handle changing economic conditions.

Risk feels Different near Financial Independence

Risk takes on a different meaning once you are no longer relying on employment income to support your financial goals. During your working years, market declines may feel temporary because new contributions continue to flow into your accounts.

Near Financial Independence, however, a significant downturn can have a larger impact because withdrawals may begin at the same time. A broader mix of investments can help reduce the influence of any single market trend and provide a more resilient foundation for the years ahead.

A Wider Mix builds more Confidence

You do not need a complicated investment strategy to make meaningful progress toward Financial Independence. In many cases, a simple and diversified portfolio can provide a stronger foundation than one built entirely around growth stocks. Understanding why your portfolio needs more than growth stocks encourages you to think beyond returns alone. A wider mix of assets can help stabilize your finances and make it easier to stay committed to your plan.

Dan Coconate is a local Chicagoland freelance writer who has been in the industry since graduating from college in 2019. He currently lives in the Chicagoland area where he is pursuing his multiple interests in journalism.

Is an AI Bubble Inevitable?

Posted By Financial Independence Hub | June 23, 2026

By Mark Seed, myownadvisor

Special to Financial Independence Hub

Is an AI Bubble inevitable? That was the subject of Ben Carlson’s post of late.

In that post:

“There’s the old saying that those who fail to study history are doomed to repeat it. You could also make the case that those who live and die by the past are doomed to be overconfident in their forecasts about the future.”

Which is why we’ve seen this drill before and I believe there is a three-step plan to consider on that, as outlined in my post from December.

From that post here are my core ideas:

Cut back on dividend reinvestment plans/DRIPs. Why??? In doing so, you are instantly raising your cash/cash equivalents pile for near-term spending in case things tank.
Trim individual stock holdings. Why??? While holding individual stocks can be amazing for income and growth, I know from experience they also expose me to some concentration risks: company or sector risks. So, to avoid that, I can trim individual holdings and simply index invest when in doubt.
Hold more cash. Why??? Aligned to #1, we did this prior to retirement, in that in case markets collapse we have cash to spend and should they continue to run higher, well, we’ll just have more money to spend for the travel we are now enjoying in retirement…

Readers, tell me, what’s your take on market bubbles, speculation on market bubbles or like me, really don’t care too much??

Mark Seed is a passionate DIY investor who lives in Ottawa. He invests in Canadian and U.S. dividend paying stocks and low-cost Exchange Traded Funds on his quest to own a $1 million portfolio for an early retirement. You can follow Mark’s insights and perspectives on investing, and much more, by visiting My Own Advisor. This blog originally appeared on his site on June 6, 2026 and is republished on Findependence Hub with his permission

5 keys to a great Retirement

Posted By Financial Independence Hub | June 22, 2026

By Fritz Gilbert, RetirementManifesto.com

Special to the Financial Independence Hub

Can you imagine having the opportunity to study two decades worth of retirement research, and gleaning the keys to a great retirement from the experts? I recently had that opportunity when I took the time to read a 90-page study titled “The Experience Of The Transition To Retirement,” a study that filtered through 1,800 research papers!

Today, I’m summarizing the results from that study and presenting to you 5 Keys To A Great Retirement, along with additional findings from this extensive research.

Using Research To Improve Retirement

The goal of this research project was to understand what led to successful retirement transitions and to “better understand how best to help individuals navigate this transition”, as well as “how to improve the quality of post-retirement life”. Valuable information from which you, the reader, can benefit.

Before I present The 5 Keys To A Great Retirement, there are some findings in the study which I found interesting. For the sake of brevity, below is a list in bullet form. Note that the study did focus on gender/socioeconomic/ethnic/cultural differences, so it’s best to read the findings with that in mind:

25% of retirees experience difficulties in the transition to retirement.
Men tend to have more positive attitudes toward retirement and be more engaged in planning for retirement than women.
Based on the studies, women appear to have greater difficulty in adjusting to retirement than men.
Those in higher Socioeconomic positions tend to work longer than those in lower positions.
Being married is associated with greater preparedness and a more proactive approach to planning for retirement.
Where work is important to an individual’s identity, retirement causes more conflict and anxiety.
Nearly half of those aged 50 and over said that they expect to retire later than they had thought they would.
Governments from around the world have enacted policies that seek to reverse an ‘early exit culture’ and extend the length of people’s working lives, maintaining economic productivity and reducing social spending.

Yes, there was a lot of interesting information in those 90 pages (trust me, I read every page). Boiling it all down, below are my takeaways on what comprises the 5 Keys To A Great Retirement.

1.) Control Your Destiny

The first finding was that those who felt they had the most control over their retirement decision were also those who most enjoyed their transition into retirement. To quote the study:

“One of the most consistent and convincing findings in this review is that a sense of control is associated with positive retirement outcomes.”

While you may feel that you don’t control your retirement as much as you’d like, the reality is that there are a lot of areas in your retirement planning where you can influence the results. Simply taking the time to prepare for your transition into retirement (See Key #2) is, in itself, exerting some control over your destiny.

Don’t leave your retirement to chance.

Given that you’re reading a blog on retirement, you’re likely ahead of your peers in tackling the first of these Keys To A Great Retirement. You’re taking control of your retirement, and your retirement will be better as a result.

2.) Imagine What Your Retirement Will Be

The second of the 5 Keys To A Great Retirement was the finding that those who took time before retirement to imagine what their retirement would be were also those most likely to have a good retirement. Think beyond finances. Finances play a small role post-retirement, and yet most folks think most about the financial implications of retirement when preparing for the transition.

Broaden your scope, and spend time thinking about what you want your retirement to be. Dedicate some time, while you’re still working, to take a Test Run At Retirement, like my wife and I did. Take some time to think about:

What will your life look like when work is no longer mandatory?
How will you spend your time?
What will give you Purpose?
Where will you live?

The research indicates that retirement planning “has potentially important consequences,” not just for financial security in retirement, but also ” in promoting satisfaction with, and adjustment to, the retirement lifestyle.”

It’s been proven by the research that planning for retirement while you’re still working is one of the best things you can do to ensure that you’ll have a great retirement. Make it a priority, it’s one of the keys to a great retirement.

3.) Develop Retirement Goals

Retirement is a luxury.

For the first time since you started school, you’re free to do whatever you want with your life. It’s also the first time that you’re 100% responsible for deciding how you’re going to spend your time.

Are you going to Die While You’re Living, Or Live While You’re Dead? Decide what retirement means to you, and develop some goals to help you prioritize the things which are most important to you. Focus on what matters to you, and create a plan to do the things you want to do, and avoid doing the things you don’t.

Create an action plan to move your retirement From Good To Great. Create your own 10 Commandments of Retirement, and outline what really matters for your life in retirement. Recognize that your role and identity will change from when you were a worker with employer-defined goals. You’re now Independent, and you should define your own identity, supported by your own goals. Continue Reading…