Hub Blogs

Hub Blogs contains fresh contributions written by Financial Independence Hub staff or contributors that have not appeared elsewhere first, or have been modified or customized for the Hub by the original blogger. In contrast, Top Blogs shows links to the best external financial blogs around the world.

“Findependence or Bust” — my interview with Pat Bolland on his new podcast

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Pat Bolland, host of The Just Word podcast.

Veteran broadcaster Pat Bolland interviews me on his new podcast: The Just Word with Pat Bolland.

You can find the full interview — which dropped early Tuesday — here.  The episode is titled “Findependence or Bust.” Scroll down a tad if you can’t see it immediately on your screen. It’s audio-only (at least this particular segment) and if it appears to pause on a mobile device, simply press the Play button again and it will resume where it left off.

You can find the podcast on the usual distribution outlets, including Spotify, Apple, Google and others.

I’ve followed Pat’s career in broadcasting and investing for decades and for a time we worked as editor (me) and columnist (Pat) during my stint at MoneySense magazine. Pat was my go-to-source for Fixed Income, although of course he’s extremely knowledgeable about all asset classes.

The interview is a wide-ranging one over Zoom, spanning about 25 minutes, with a particular focus on this website: The Financial Independence Hub. Pat probes me about why and how the site got started, about its demographics and audience and we discuss the difference between traditional Retirement and the concept of Financial Independence (aka Findependence) and the idea of the Financial Life Cycle.

As the title of the segment suggests, he fully fleshes out the word Findependence, including my self-appointed title of CFO, standing uniquely for Chief Findependence Officer.

We address the difference between Wealth Accumulation and so-called “Decumulation,”  and discuss a few Canadian authors of books that focus on the topic, or Retirement in general.

Our respective forays into Cryptocurrencies

Of course, we also covered a lot of ground about investing in general, ranging from cryptocurrencies and Bitcoin and gold/precious metals to robo-advisors and investing in a post-Covid world where vaccines are becoming common enough that investors can start to think about so-called “Recovery” plays.

We chat about what seems to have been the shortest bear market in history (March 2020) and the subsequent volatile markets. I was surprised to discover Pat was an early adopter of Bitcoin, albeit a tiny amount several years ago, which he ultimately bought a set of golf clubs with.

We then moved on to zero-commission trading, young investors trading on Robinhood, and the recent phenomenon of the short squeeze on GameStop and other popular meme stocks promoted on Reddit’s WallStreetBets forum.

Housing, investment real estate and REITs

We also discuss interest rates and housing, debt and financial repression, life expectancy and longevity, and what aging baby boomers like ourselves can expect in Semi-Retirement and (one day!) Full Retirement. We walk about Toronto housing prices and my long-term philosophy that the foundation of Findependence is a paid-for home (articulated in my financial novel, Findependence Day.)

We also address investment real estate and — for those who don’t wish to be a landlord — REITs (Real Estate Investment Trusts) or REIT ETFs.

What I’d tell my 35-year old self

Watch near the end for Pat’s question to me about what I’d tell my 35-year-old self if I could go back in time and do it all over again.

Hint: Pat thought my answer was “facetious!”

RBC continues to see increased adoption of digital banking solutions

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NOMI Budgets, available through the RBC mobile app.

By Peter Tilton, Senior Vice President, Digital, RBC

(Sponsor content)

Prior to the pandemic, RBC already had a robust digital banking user base.

However, as COVID-19 reached Canada and temporary branch closures took effect, we saw a rapid increase in demand for digital banking solutions.

We quickly pivoted to expand the capabilities of some of our leading digital tools, helping to ensure that clients could access everything they needed from home, including one-on-one appointments with their financial advisor.

Our analytics showed some interesting trends: the first being that many seniors quickly adopted digital banking tools. We saw a 77% increase in average weekly enrolment for digital banking sign-ups amongst users aged 60+, and daily re-engagement amongst these clients increased by 36%.

Digital banking tools also saw an overall increase in demand. For clients who had been with RBC for more than five years, there was more than a 60% increase in average daily digital enrollment throughout the first few months of the pandemic.

Below is a look at some of the tools that helped our clients simplify their day-to-day routines and manage their finances effectively from home.

With MyAdvisor, meet with your financial advisor from home

MyAdvisor offers clients digital access to their personalized financial plans and connects them to an advisor in their community either by live video, phone or in-branch.

In the wake of COVID-19, we saw increased adoption of MyAdvisor. The platform was adapted to allow for an increased volume of client and advisor interactions, including video calls. We also expanded the platform to support a wider group of advisors to help meet every need; for example, Private Banking advisors.

We’ve heard some great feedback on the platform from our advisors, one of whom mentioned that they previously tried to introduce MyAdvisor to a client for two years, but the client declined as they preferred in-person meetings and didn’t use online banking. Given the current physical distancing guidelines, the client decided to try a video meeting through MyAdvisor and was surprised with the ease of use. When the client went to book their future annual review with the same advisor, they requested another MyAdvisor video appointment.

We now have more than 2.23 million clients onboarded onto MyAdvisor with a personalized plan. Between March 2020 and January 2021, the number of completed appointments increased by 84%.

Ask NOMI allows clients to get more comfortable with digital banking

Ask NOMI is an interactive guide to personal banking. Found in the RBC Mobile app, it uses Artificial Intelligence to answer client questions about their accounts, simplify select everyday banking tasks and increase client comfort levels with digital banking. Continue Reading…

10 Mobile Apps for managing money and improving Financial Literacy

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By Jasmine Melikyan

Special to the Financial Independence Hub

Nowadays managing financial incomes, investment accounts, and tracking your expenses are simplified due to mobile apps. They provide a more precise picture of earnings and spending so that one can forget about pen and paper to write down all the financial information and sometimes even get messed with numbers.

Everything goes digital and becomes mobile-friendly, and budgeting is not an exception. With 4.78 billion unique mobile users who can easily plan their financial resources via apps, saving them time, these provide a vivid picture of what expenses they can allow themselves and what not, making these applications easy-to access financial trackersthat can keep you in check anytime. The functions of this smart software might sound unusual to the older generation, for whom the only true way is the hand-written notes on the paper; however, they will enjoy it once they try.

Here are 10 mobile apps for managing your money and improving your financial literacy. You need only to give it a shot!

1.) PocketGuard

PocketGuard was launched in 2014 to help people better manage their money. It assists you with several different financial issues.

Once you link your financial account to the app — credit cards, investments, loans, etc. — you can see the big picture of where you stand and what you have at the moment. Due to professionally developed features, you can follow and manage your individual transactions with the app. PocketGuard can take care of your money, reminding you how much you have left in your pocket. The app creates an individual budget form for you based on your income, spendings, bills, or goals. It will help you to better understand your financial situation and spend your money more wisely.

2.) Mint

Mint is a free online platform with financial planning and tracking tools. The app can be used by different devices. Mint is ideal for people who want to be informed about their budgeting, transaction, bills, etc. The app is regularly updated with new and useful features; however, the absence of account reconciliation can make the app unusable.

3.) YNAB

YNAB is a financial application that can be used across iOS and Android operating systems, iPads, desktop computers, Apple Watches, and the Amazon Echo system. The goal of the application is to consider long-term expenses to prevent unexpected spendings. YNAB categorizes transactions, displays financial reports. It is quite a popular app for investors.

4.) Goodbudget

Goodbudget is a money management and expense tracking tool that helps you to stay on top of your finances and bills. It automatically syncs across Android, web, and iPhone and helps you to schedule your transactions or edit your budget as needed. Subscribers get 7 years of transaction history and personal email support for every case.

5.) Honeydue

Honeydue is the perfect app to solve money-related arguments between couples. They can attach their account details and share information about account balances and spendings. The application supports thousands of financial institutions across five countries. Honeydue uses the best practices of the industry to provide you modern and helpful tools and protect your financial data and identity.

6.) Robinhood

Due to the Robinhood app, you can make unlimited commission-free trades in ETFs and stocks, as well as purchase cryptocurrencies with Robinhood Crypto. Robinhood provides fractional shares, which means you can invest in thousands of stocks with a small amount of money.

7.) Ellevest

The goal of this application is to close gender money gaps. It was created especially for women, but clients of the opposite gender are also welcome. Continue Reading…

Money, health, and family top worries in COVID-influenced RRSP season

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By Scarlett Swain

Special to the Financial Independence Hub

As Canadians turn their attention to their investments during this COVID-influenced RRSP season, an annual online study conducted for Questrade by Leger (www.leger360.com) last month unveiled some compelling findings regarding trends and changes Canadians are likely to make when investing.

As part of our ongoing commitment to improving the financial security of Canadians, we set out to learn about what issues are currently top of mind, how they might impact investing, and what we can do to help investors on their journey to financial security. To no surprise, most respondents chose money, health, and family as their top three worries. We also saw some interesting behavioural trends to note.

Despite the pandemic, our research showed that Canadians continue to be very committed to making contributions to their retirement savings, while evidence suggests investors are placing importance on ensuring their investments go farther.

Most will contribute as much or more this year

A majority (69%) of respondents with an existing RRSP plan to contribute the same amount as last year (or more) to their RRSP this year, showing an unwavering commitment to their retirement. The number is even higher amongst those with a TFSA, with 85% planning to contribute more or the same amount to their TFSA. Half (50%) said given the impact and uncertainty during this pandemic, they are more likely to invest for the long term or for retirement, while 44% are actively seeking lower fee options this year, and 39% are investing more this year to get better returns. Continue Reading…

Retiring at 50: How achievable is it?

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By Emily Roberts

For the Financial Independence Hub

Most of us dream about and count down the days until our retirement, picturing ourselves at the beach, enjoying a cocktail while laughing about the days we spent slogging away at the office. These thoughts can be what get some of us through the workday, and even if you love your job and could never picture doing anything else, retirement is still the end goal for all of us so that we can enjoy our later years in peace and tranquillity.

Yet some of us go one step further and think about early retirement. While this may seem like an unachievable dream for many, it can in fact become a reality if executed properly. Retiring at 50 isn’t impossible, but it isn’t easy, either. Typically, people will retire between 65 and 67. This can seem like an age if you dislike your job or simply wish to slow down.

If you are wondering how you could retire early but also the benefits of retiring all together, read the following guide. Not only will it explain the advantages of retirement, but it will also list of the best ways to increase your chances of an early retirement as well as the signs that you may not be ready to retire just yet.

Good reasons to retire

There are many good reasons to retire. For starters, you may be unable to complete your typical day-to-day duties at work as you age. This is especially true for those who work in a physically demanding role such as construction or mining. Your body will be unable to keep up with this labour-intensive work and you are more prone to injuries.

However, retirement is a time for you to slow down and enjoy life. Rather than worrying about getting up and making it to the office in time, you can live your life at your own leisurely pace. While this may seem odd at first, the time you usually spend at work is now yours to do with it as you wish. If you’ve always wanted to focus on your art, then retirement can be the perfect time for you to focus on this hobby and passion of yours. Furthermore, if you have a family, retirement can provide you with the free time to focus on reconnecting with your family (and friends!) and make long-lasting memories with them. This is especially valuable for those who have grandchildren.

Other benefits of retiring include being able to look after your mental and physical well-being. Having a career and being so focused on your job can cause you to forget about what is important: your health. We neglect healthy, balanced meals with those that are quick and typically full of saturated fats. We also lose track of time or are simply too tired to head to the gym even though working out consistently is essential. What’s more, some of us simply need to focus on our mental health more than others and heading to work and working specific hours can be harmful to our mental well-being.

Why Early Retirement can be beneficial

There are numerous benefits associated with retirement; however, there are even more linked to early retirement. For instance, when you retire early, you are able to focus on yourself and the hobbies you have longed to invest time in but was never able to before. With the free time and extra drive you have to spend on your hobbies, you could even consider turning your hobbies into a means of making extra money. For example, if you love to paint or draw, then you could always sell your artwork either online and through a website such as Etsy, or you can make a day of it and sell your work at a local market or yard sale. While you will want to have the mindset of this being a hobby that could potentially bring in some income, this can be a great way to bring you purpose while you’re retired. Continue Reading…