All posts by Financial Independence Hub

Mastering the Art of Podcast Audience Building: A Step-by-Step Guide

Posted By |
Image courtesy Canada’s Podcast/unsplash royalty free

By Philip Bliss

Special to Financial Independence Hub

Podcasting has become an influential medium for sharing stories, ideas, and expertise. However, creating a successful podcast goes beyond just recording and publishing episodes; it involves building a dedicated audience that will eagerly tune in to your content. In this guide, we’ll break down the process of podcast audience building into manageable tasks, provide realistic timelines, and offer essential summary information to help you maximize your podcast’s reach and impact.

Task 1: Define Your Niche and Target Audience (Week 1-2)

Before diving into podcast production, take the time to identify your niche and target audience. Understanding your audience’s interests and preferences will guide your content creation and set the foundation for effective audience engagement. Use tools like surveys, social media polls, and analytics to gather insights. Once you have a clear understanding, create a listener persona to help tailor your content to their needs.

Task 2: Develop a Consistent Content Schedule (Week 3-4)

Consistency is key in podcasting. Establish a realistic and sustainable content schedule, whether it’s weekly, bi-weekly, or monthly. Stick to a reliable release day and time to build anticipation among your audience. Consistency not only helps retain existing listeners but also attracts new ones who appreciate a reliable source of valuable content.

Task 3: Optimize Your Podcast for Search (Week 5-6)

Boost your podcast’s discoverability by optimizing it for search engines and podcast directories. Craft a compelling podcast title, write a detailed description using relevant keywords, and choose an eye-catching podcast cover art. Submit your podcast to major directories like Apple Podcasts, Spotify, and Google Podcasts. A well-optimized podcast increases the likelihood of reaching new listeners organically.

Task 4: Leverage Social Media Platforms (Week 7-8)

Create a robust social media strategy to promote your podcast across various platforms. Establish a presence on platforms such as Instagram, X [formerly Twitter], Facebook, and LinkedIn. Share engaging content, such as episode highlights, behind-the-scenes glimpses, and interactive polls. Utilize relevant hashtags and collaborate with influencers or other podcasters to expand your reach.

Image courtesy Canada’s Podcast/unsplash royalty free

Task 5: Engage with Your Audience (Week 9-10)

Building a podcast audience is not just about numbers; it’s about fostering a community. Actively engage with your audience by responding to comments, emails, and social media messages. Consider creating a listener feedback segment in your episodes to encourage participation. The more connected your audience feels, the more likely they are to become loyal, long-term listeners.

Task 6: Implement Guest Collaborations (Week 11-12)

Invite relevant guests to your podcast to bring diversity and expertise to your content. Collaborating with influencers or experts in your niche can introduce your podcast to their existing audience, expanding your reach. Plan collaborations strategically to align with your content and appeal to both your guest’s followers and your own. Continue Reading…

Understanding ETF Distributions

Posted By |

 

What Are ETF Distributions?

Deposit Photos

By Erin Allen, VP, Online Distribution, BMO ETFs

(Sponsor Content)

ETF distributions are payments made by an ETF [Exchange Traded Fund] to its shareholders. In non-registered accounts, these distributions are taxable to the investor in the year they are received and may include dividends, interest income, capital gains, and return of capital (which is non-taxable).

ETF distributions are typically paid out in cash; however, year-end distributions may be received “in-kind” and reinvested. Whether a distribution is received in cash or reinvested, it has the same tax impact for a non-registered investor. The tax impact will depend on the type of distribution received (interest, dividends, or capital gains) and will be reflected on an investor’s year-end tax slip.

Types of ETF Distributions

  • Canadian Dividends: Dividend distributions occur when an ETF invests in Canadian equity securities that pay dividends. Canadian residents qualify for a dividend tax credit, if the ETF invests in Canadian securities that pays dividends.
  • Interest and Other Income: Fixed Income ETFs earn interest on their investments in bonds and other debt obligations. When an ETF pays our distributions as interest and other income, distributions are taxed as ordinary income.
  • Capital Gains: An ETF may incur capital gains if an underlying security in the ETF is sold for more that its purchase price. Only 50% of the capital gain is included in the investor’s taxable income.
  • Foreign Income & Foreign Tax Paid: When an ETF earns dividends or interest on foreign investments the ETF may have to pay foreign withholding tax. When an ETF distributes this foreign income, a Canadian investor may be able to claim a foreign tax credit in respect of the associated foreign tax paid by the ETF.
  • Return of Capital: An ETF may distribute a portion of your initial investment. This is considered return of capital and is not taxable to investors. However, such a distribution will decrease the ACB (adjusted cost base) of the investor’s units. When the investor sells the ETF units the lower ACB will increase the capital gain (or decrease the capital loss) that would otherwise be realized on the sale.
  • Reinvested “Phantom” Distributions: Phantom distributions are the reinvestment of unpaid capital gains that an ETF may realize if an underlying security in the ETF’s portfolios sold for more than its purchase price. Learn More here

What triggers a Capital Gain?

An ETF could incur a capital gain if one of the following events occur:

  • Performance – If the ETF experiences positive returns since purchase and the underlying investment is sold, the ETF could realize a capital gain.
  • Corporate Action – When a merger or acquisition occurs resulting in a disposition of one of the underlying holdings, the ETF may realize a capital gain.
  • Portfolio Rebalancing – When this occurs, the ETF will trade the underlying securities, which could result in a capital gain.

More on Return of Capital (ROC)

Any distribution that is paid out in excess of taxable income is classified as ROC. For cash distributions paid throughout the year, BMO ETFs generally distributes based on the underlying portfolio yield less expenses. This benefits investors by providing greater certainty on the payout. As the ETF grows, the income earned is allocated across unitholders.

The important consideration for ROC, is whether it impacts the sustainability of the distribution. We define good ROC as sustainable, where the invested capital is not depleted over time. We define bad ROC as dipping into the invested capital to support the distribution, which leaves less investment for future years.

Timing of Distributions

Distributions are paid to investors based on the number of units they hold of an ETF on its “record date”. The record date is generally the business day prior to the distribution date. The frequency and amount of distributions can vary between different ETFs.  Investors should review an ETFs prospectus or website to understand the distribution policy and schedule before investing.

If you are purchasing an ETF and would like to receive that month’s distribution you must do so before the ETF’s “ex-date,” this will ensure you are on record for the payment. Continue Reading…

Financially Surviving a High-Net-Worth Divorce

Posted By |
Unsplash

By Devin Partida

Special to Financial Independence Hub

Navigating a divorce can be stressful, especially if you have considerable financial assets. While legal separations can be nasty, they don’t have to be.

Discover what counts as a high-net-worth divorce, along with some tips to help you survive it with most of your financials intact.

What is a High-Net-Worth Divorce?

Traditionally, high-net-worth divorces are considered a split of US$1 million dollars between parties. Considering the increased property values and inflation in recent years, a high-net-worth divorce now involves several million dollars worth of financial assets. If you have assets amounting to this sum, you’re looking at a high-net-worth divorce in your hands.

What makes High-Net-Worth Divorces complicated?

Divorce in the U.S. is still prevalent, with estimates that 50% of first marriages will most likely end in divorce. That’s a lot of legal proceedings and assets to divide. Parties with fewer assets to divide often have more uncomplicated legal matters to resolve.

Divorce proceedings get more complex since you have millions of dollars worth of assets to take care of. Many factors come into play, like assets and liabilities acquired before and after the marriage, businesses owned by either or both spouses and investment or pension plans.

Tips on how to Safeguard your Interests during and after a High-Net-Worth Divorce

Wealthy couples typically have a lower divorce risk, but there may come a time when one or both parties decide to call it quits. Although high-net-worth divorces typically involve top-caliber lawyers and advisors, it’s still essential to research what to expect during legal proceedings. Doing so will help you prepare better for the process and safeguard your financials.

Get Expert Legal and Financial Advice

Divorce can be a physically, mentally and emotionally draining process. It’s also time-consuming if you have no idea how to proceed. Getting expert legal and financial advice can save you time and money, especially if you hire lawyers who have your interests in mind.

Hiring an expert mediator is one of the most underrated ways to ensure smooth divorce proceedings. Divorce mediation involves protecting both parties and safeguarding their interests from a neutral standpoint: each side gets what is rightfully theirs, no more and no less.

Know which Assets to Protect

Distinguishing between marital and separate assets is critical to protecting your financials in a divorce. You must ensure you know the value of your assets like properties, businesses, investments and so on. Catalog them depending on their classification so you know which assets to protect from division.

Here’s what you need to know about the difference between marital and separate assets. Continue Reading…

2023 Financial Year in Review | 2024 Investment Market Outlook

Posted By |
Lowrie Financial/Canva Custom Creation

 

By Steve Lowrie, CFA

Special to Financial Independence Hub

You might assume, the more experienced a financial professional is, the more accurate they can be with their year-end forecasts. Personally, I’ve never tried to predict which hot or cold stocks, bonds, sectors, or market sentiments to chase or flee each year. Instead, the more experience I’ve gained, the more firmly I believe in the Timeless Financial Tips I shared throughout 2023. For me, they serve as the best guide for “predicting” what investors should expect in 2024.

So, considering everything I’ve learned in 2023 (plus the quarter-century prior), I predict …

We cannot possibly predict how 2024 markets will perform.

That’s my expert forecast, and I’m sticking to it. I will, however, add one more prediction, about which I am nearly as certain …

Over time (think multiple years), capital markets WILL deliver positive returns to those who consistently participate in their expected growth.

The 2023 Allure of 5% GIC Returns

If anything, 2023 offered fresh lessons on why it’s better to stick with the financial fundamentals and avoid the perils of market-timing.

As you may recall, we were still licking our 2022 wounds in January 2023, after experiencing an unusually perfect storm of negative annual returns from stocks AND bonds, along with continued high inflation. How unusual was 2022? I looked for the last time investors had experienced across-the-board negative annual returns, plus steep inflation and couldn’t find an example of this, at least in my career.  1994 was the last time both stock and bond returns were negative, however Canadian Inflation (CPI) was a scant 0.25% that year.

Given the 2022 backdrop, no wonder many investors were drawn to GICs and their alluring 5% interest rates in 2023.

It is true, GICs can be helpful for your rainy day funds and similar cash reserves that are awaiting their spending fate. But in 2023, I also saw people using (or, more accurately, abusing) this vehicle to sideline investable cash indefinitely, waiting for seemingly better days to jump into the market. Worse, some investors might have sold off portions of their existing investment portfolio to chase after GIC rates.

Safe Harbors can be a Risky Bet

Unfortunately, waiting for “better” markets before investing or reinvesting according to plan is still market-timing by any other name. And as I’ve covered before, market-timing ignores myriad investment fundamentals.

Among the most important insights to take to heart is how rapidly market tides can turn, leaving the unprepared out of luck. As one of my financial planning colleagues recently described:

“Small hinges swing big doors. [Market] Prices are brutish, irreverent, and unsympathetic to investors putzing about on the sidelines.” – Rubin Miller, Fortunes & Frictions

This message was on clear display in 2023. Talking about swinging markets! I’m willing to bet few, if any of us were expecting such strong annual returns for 2023, especially since most of the reward hinged on a year-end pop.

And yet, it shouldn’t really have come as such a big surprise. It’s exactly how global markets have repeatedly performed over time. It just seems as if investors forget this fundamental every time markets take a break from their historically uphill climb. Continue Reading…

2024 Canadian Retirement Income Guide: 10 potential sources of income

Posted By |

By Ted Rechtshaffen, CFP

Special to Financial Independence Hub

Over the years, we have received thousands of questions from clients related to a wide range of financial and planning issues.  Without doubt, the highest volume of questions relate to how to manage the transitions from working to retirement.

To help address many of these questions, we have put together the 2024 Canadian Retirement Income Guide.  This can be found on the link here: Canadian Retirement Income Guide – TriDelta Private Wealth.

The Guide highlights ten different sources of retirement income.  Some range from the very common, Canada Pension Plan, to those that may only apply to some – life insurance, corporations, or home equity. The Guide is free and doesn’t require any input to get it (such as name or email.)

Perhaps the most common question is whether to take CPP at age 60 or 65 or even 70.  The thoughts around a potential answer are discussed in the Guide as well as providing a link to a CPP calculator (CPP Calculator – TriDelta Private Wealth) and guidance on how to work with Service Canada.  Similar discussions and links relate to Old Age Security (OAS), ranging from taking it at 65 to age 70, and also factors that might help you to avoid any clawbacks.

Other factors that need to be considered include minimizing taxes, not just for one year, but over the entire post-work period.  One of the reasons for looking at every possible source of retirement income is that this can be the key to planning out the lowest tax retirement.

Some strategies discussed that could lower taxes could include:

  • Delaying OAS and CPP to age 70, but drawing down RRSPs between retirement and age 70 – if you are healthy. The lower income drawdown of RRSPs will result in lower taxes, while helping to maximize government pensions and potentially maintaining full OAS payments.
  • Using a balance of non-registered assets or a home equity line of credit, to keep taxable RRIF income a little lower. Continue Reading…