All posts by Jonathan Chevreau

Entrepreneur videos feature Chilton, Joyce, Laliberte

Good piece in Monday’s Entrepreneur section in the Post by Rick Spence (@rickspence on Twitter.) Rick describes a new series of videos from the Canadian Foundation for Economic Education, which seeks to raise financial literacy. The videos are each five or six minutes, and are entitled Entrepreneurship: The Spirit of Adventure. Initial interview subjects include David Chilton (@wealthy_barber) , Cirque du Soleil founder Guy Laliberte, and Tim Hortons co-founder Ron Joyce.

The new series follows one 20 years earlier, also created by CFEE president and financial literacy guru Gary Rabbior (@cfee1).

Teachers can stream the new video series here.

Millennials have savings rate of negative 2%

The Wall Street Journal reports in Young Face a Savings Deficit that the under-35 generation (millennials) have stopped saving, so much so they have a negative savings rate: minus 2%. Moody’s Analytics says those aged 35 to 44 have a positive savings rate of 3%, while the 45-to-54 cohort have a 6% savings rate. The older you are, the higher the savings rate: it’s 13% for those 55 or over, which seems to be in the realm of being adequate enough to establish a modicum of financial independence ( as we say here at FinancialIndependenceHub.com, “while you’re still young enough to enjoy it.”)

In the linked subscriber-only piece (sorry!), the WSJ says the personal finances of millennials have become “increasingly precarious despite five years of economic growth and job creation.”

Back in 2009, the savings rate reached 5.2% for those under 35, the WSJ says, briefly surpassing the savings rate of those 35 to 44.  But today the median millennial has a net worth of US$10,400, down from US$18,200 for Generation X.

Student loans are also problematic: the median student debt for borrowers under 35 has risen to US$17,200 from US$6,100 in 1995.

Call for Contributors

We’ve heard from several individuals about writing for the Hub and yes, we welcome contributions. Some guest blogs will be going up in the next week or so. Since this site does not charge at this point, we aren’t yet in a position to pay contributors but we are happy to provide what exposure we can. Contributors are welcome to include links where appropriate and of course can end each piece with a short italic description of who they are and how they can be reached.

Because the Hub aims to be a North American portal on financial independence, we welcome contributions from knowledgeable good writers from both the United States and Canada. Remember that the book Findependence Day (which began this whole adventure in 2008) is available in both American and Canadian editions. So are the two new e-books.

The standard length for blogs is often said to be between 400 and 600 words but there’s also evidence that lengthier meatier pieces can get good play and pick-up. Really, it’s a balance between having enough space to be substantial, while recognizing that in this time-starved hectic world we live in, most people have the attention spans of the proverbial gnat. If you run out of steam at 350 words, so be it. And if you need 750 or 900 words to say what you want to say, then go for it.

The longer the piece, the more you need to include subheads and at least a photo or image of some sort. I will act as editor to the extent necessary.

Try to target our six major categories

What topics? Scan the second (gray)  bar on the home page to see what we’re focusing on. If you want to reach younger Gen X and Gen Y readers, then Debt & Frugality is the place to target. The category of Wealth Accumulation is very broad and can include anything from asset allocation to pensions to ETFs to robo-advisers (we just put up an item on the latter).

Further along the continuum of Financial Independence, there is the Decumulation section, which is all about drawing down on wealth instead of building it up. And the Longevity & Aging section is a key focus of the Hub because of our belief that the baby boomers and their children are going to be on this planet a very long time on average, assuming they take care of themselves. See the links in this section to the blogs of Change Rangers’ Mark Venning and Agenomics’ Lee Anne Davies.

The Business Ownership category is another important niche. We considered calling this one Boomerpreneurs because so many baby boomers are leaving corporate employment (voluntarily or otherwise) and going out on their own as consultants, freelancers, franchise owners or building entire new businesses from scratch. But of course Entrepreneurship is hardly restricted to the boomers. Most of us stayed in the corporate womb for far too long and might better have embarked on the entrepreneurial path much earlier. Those wishing to pursue “Multiple Streams of Income” (from the Internet or otherwise) may well be building businesses at younger ages, either on top of a full time job or taking the leap direct from college or some starter job that they chuck.

The category of Politics and Economics is very broad. See the initial post there to get a flavour for that. We believe the further you have travelled along the road to Findependence, the more you need to pay attention to geopolitics and macroeconomics. Those interested in this area will find plenty of scope here.

Reviews

The Reviews tab refers chiefly to book reviews, most of which should touch on financial independence in some fashion. As above though, this can include many genres of books: everything from history to biography to entrepreneurship and the Internet. Any book that addresses our main categories will be fair game. And if you’re the author of a book yourself, perhaps a self-published e-book? (we know all about that!). Drop us a line anyway and we can discuss it.

This doesn’t have to be restricted to books. If you love the latest album on iTunes or think a movie is wonderful and want to share it with the world, then give us a try. Of course, we’d be more inclined to run it if it touches in some way on Findependence: a film like The Wolf of Wall Street.

A word on the forums

Another place we’re looking for content is the discussion forums. We have five forums planned to start with and they take a demographic/ages-and-stages approach to the key steps in reaching Financial Independence. Once we have a bit of two-way to and fro between contributors, this may be the place to develop story ideas, ask questions, post links and even subtly promote your business or product, if done in a way that readers are presented with valuable content. They will be moderated but having gone through a long experience with the Wealthy Boomer forums in the past, I think we’ll be able to spot the difference between blatant sales pitches and valuable sharing!

It will be awhile before the forums reach “critical mass.”  That’s beyond our control and up to the community. In the meantime, we’re happy to provide the infrastructure.

How to reach Jonathan

First,  try jonathan@findependenceday. If I don’t respond quickly it might be that our email system is experiencing a hiccough during this transition between sites. If so, send a DM (Direct Message) to @jonchevreau at Twitter but be sure to @me as well to tell me to check the DM.  Like many Twitter users, I can’t be relied upon to monitor DMs unless I’m flagged via the @function.  Those who have my actual email are welcome to use it as well: I just don’t want to put it up on the web just yet because of all the spam it may create.

 

 

Putting robo-advisers to the test

Good piece by my former colleague and hockey teammate David Pett in the weekend’s Financial Post. David is a real double threat: a great business writer and a fabulous hockey player.  He asked four recent “robo-adviser” startups to provide portfolios for in the one case, young professionals, and in the other, a retiree. He concluded their recommendations are “anything but mechanical.”

Here’s his piece.

Is 3% the new 4%? Bengen rule of thumb questioned

For the longest time, Robert Bengen’s 4% annual withdrawal rule (plus an inflation adjustment) was the gold standard for simplicity in estimating SAFEMAX: a safe annual maximum withdrawal rate  from retirement nest eggs that minimizes the odds of having to break sharply into principal at too fast a rate, thereby leaving little or nothing in advanced old age.

Of late, there’s been a lot of articles questioning this rule. Actually, it’s been going on for awhile.  The following piece from Investment News goes back to early 2012. You may have to register to read the full piece but it’s free once you enter your email and probably worthwhile to bookmark them anyway. And you might want to do the same here at the Financial Independence Hub too!  — JC

Here’s the article.

P.S. This would be a good topic for our forums, which we hope to have up and running this week. Stay tuned!