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.

How Financial Independence can Reshape your Definition of Success & Mental Health

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Photo by Dana Tentis on Pexels

Discover the transformative power of financial independence as industry leaders reveal how it can redefine success and enhance mental health. This article delves into the pivotal role of autonomy over time, the serenity that comes with automating finances, and the decreased stress from a strategic career pivot. Gain exclusive insights from authorities in the field on how saying no, embracing failure, and prioritizing family can lead to a life of fulfillment and stability.

  • Success Means Control Over Time
  • Automating Finances Brings Peace
  • Switch to Consulting Reduces Stress
  • Freedom to Design My Life
  • Saying No Reduces Stress
  • Freedom to Pursue Joyful Opportunities
  • Control Over Time and Decisions
  • Family Time Over Career Goals
  • Focus on Long-Term Stability
  • Monetization Strategy Brings Happiness
  • Failures as Stepping Stones

Success means Control over Time

At the start of my career, I was obsessed with proving myself. I took on every case, worked ridiculous hours, and measured success by the number of wins I had under my belt. I thought the more I worked, the more successful I would be. But eventually, I hit a point where I was financially comfortable, and I realized I was still just as stressed as when I started. That was when I began prioritizing Financial Independence, and my definition of success completely changed. In the present time, I see success as having control over my time and my future.

A great example of this shift was when I started making decisions that were not just about revenue but about sustainability. I turned down high-stress cases that were not worth the mental drain, hired more attorneys to distribute the workload, and focused on building a firm that could function without me handling every single detail. That shift meant I no longer felt like I had to be on call 24/7, and my stress levels dropped dramatically. — Gordon Hirsch, Founder and Managing Attorney, Hirsch Law Group

Automating Finances brings Peace

When I started my career, I defined success by wealth and status-what I could buy and show off. I believed the more I had, the more successful I’d be. But when I shifted my focus to Financial Independence, everything changed. I realized that true success isn’t about accumulating things; it’s about having peace of mind and long-term security.

A turning point for me was automating my savings and investments. Before that, I was constantly stressed about money. Once I set everything to run automatically, I no longer had to worry. That simple change gave me mental space, allowing me to live freely without financial anxiety. Now, success is about feeling in control of my future. This shift has significantly improved my mental health, bringing me a sense of calm I never had before. — Brian Staver, CEO, Net Pay Advance

Switch to Consulting reduces Stress

I used to define success almost exclusively in terms of career milestones, like job titles, salary increases, or the prestige of my workplace. After I started focusing on Financial Independence, I began measuring success by how much control I had over my time and decisions, rather than by external markers. This shift significantly reduced my stress levels because I no longer felt tied to an intense “always-on” mentality just to climb the corporate ladder.

Once I established multiple income streams and built a solid emergency fund, I felt empowered to switch to a part-time consulting role, which opened up space for personal pursuits, like volunteering and hobbies that I’d never made time for before. Having that buffer of financial stability made it easier to prioritize my well-being and mental health, rather than constantly chasing traditional measures of success. — Inge Von Aulock, Investor & Chief Financial Officer, Invested Mom

Freedom to Design my Life

Success used to mean chasing titles, climbing the corporate ladder, and hitting traditional milestones like bigger paychecks, promotions, and external validation.

But once I started prioritizing Financial Independence, my perspective shifted entirely. Now, success is not about how much I earn but how much freedom I have to design my life on my terms.

Instead of measuring success by status or salary, I now define it by:

  1. Time freedom: Having control over how I spend my days.
  2. Choice and flexibility: Not being tied to a paycheck or forced into decisions based on financial constraints.
  3. Peace of mind: Knowing I have a safety net that allows me to take risks and say no to things that don’t align with my values.

Letting go of the pressure to constantly “achieve more” has been a huge relief.

Before, I felt trapped in an endless cycle of stress, overworking, and burnout, thinking that success meant sacrificing my personal well-being. Now, I feel more grounded, in control, and mentally at peace because my goals align with what truly matters to me.

A few years ago, I would have never considered stepping away from a high-paying job, fearing financial insecurity. But after working toward Financial Independence, I had the freedom to turn down a promotion that would have required longer hours and more stress.

Instead, I chose to focus on projects that align with my passions, knowing that my financial foundation gave me that choice.

The result? Less stress, more fulfillment, and a life I genuinely enjoy living.

Prioritizing financial independence has taught me that success is not about accumulating wealth but about having the freedom to live on your own terms. And that shift has made all the difference in my mental well-being. — Chinyelu Karibi-Whyte, Self-Care, Mindfulness & Resilience Advocate, Pheel Pretty

Saying “No” reduces Stress

When I first started in real estate, success was all about numbers: closing deals, growing revenue, and hitting milestones. I measured everything in dollar signs and transactions. But as I gained financial independence, my perspective shifted. Success became less about accumulation and more about impact-on my team, community, and well-being.

One of the biggest changes was learning to say no. Early in my career, I took on every client, every opportunity, afraid that turning something down meant losing ground. But once I reached a place where I wasn’t financially desperate for the next deal, I could be more selective. I could focus on working with people who aligned with my values and on projects that truly excited me. That shift reduced my stress dramatically. Instead of constantly feeling pressured to chase, I started making strategic and fulfilling decisions.

A clear example of this is Pepine Gives, my nonprofit focused on helping at-risk families. Years ago, I wouldn’t have had the bandwidth to pour energy into something like this because I was too busy trying to build stability. Now, I can invest time and resources into causes that matter because I’m not in survival mode. And that has brought me a fulfillment that no commission check ever could.

Financial Independence hasn’t made me work less: it’s made me work differently. My business is stronger because my priorities are clearer, and my mental health is better because I’m no longer tied to a definition of success that’s purely financial. Instead, success is about creating lasting change, lifting others up, and building a legacy beyond real estate. — Betsy Pepine, Owner and Real Estate Broker, Pepine Realty

Freedom to Pursue Joyful Opportunities

Success used to mean chasing milestones that felt like they were chosen for me: a high-paying job, owning the latest gadgets, or even maintaining a certain image of “having it all together.” Financial Independence rewired that definition entirely. Now, success isn’t about accumulation: it’s about freedom. It’s the ability to say “no” to things that don’t align with my values and “yes” to opportunities that spark joy or growth, even if they don’t come with a paycheck attached.

One example: I turned down a promotion that would’ve come with a significant pay bump because it demanded longer hours and constant availability. Ten years ago, I would’ve felt like I was throwing away an opportunity. But prioritizing financial independence allowed me to see it for what it was: a trade-off that would’ve cost me my time, health, and peace of mind. Instead, I used that time to start freelancing in a field I love, and ironically, I ended up replacing that lost income in a way that didn’t burn me out. Continue Reading…

How to attract Buyers for your Private Practice

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Are you struggling to attract new clients to your private practice? With so many options out there, it can be challenging to know where to start when it comes to marketing your services. However, some tried-and-true strategies can help you stand out and attract new clients to your practice. With some of these tips you can your methods in attracting serious buyers and highlight your business’ value.

Image courtesy Logical Position/Adobe Stock (Arnéll Koegelenberg)

By Dan Coconate

Special to Financial Independence Hub

Whether it’s a law office, accounting firm, dental office, or other type of private practice, selling a business is an important and challenging step to take. Of course, you want to ensure you get a fair price, but don’t neglect to look beyond the financial angles as well. If you want to protect your legacy and find the right buyer, the following proactive steps will help you prepare and market your practice, making it a hot commodity and ensuring a smoother transition.

Here’s how to attract buyers for your private practice.

Highlight what makes your Practice Unique

When buyers purchase a private practice, they’re not just buying a business. They’re also acquiring a long-standing reputation, client base, and operational structure.

You can begin the selling process by identifying what sets your practice apart and makes it special compared to competitors. Do you offer specialized services? Do you have an established, loyal client base? Is your location particularly advantageous? Answer these questions, and put these strengths front and center in your marketing materials and presentation. Highlight the unique benefits your practice offers compared to others in your field for a greater advantage.

Organize your Financial Records

Provide potential buyers with a clear understanding of your practice’s financial health. Ensure that all of your financial records are in order and up-to-date with accurate data on revenue, expenses, profit margins, and client retention rates. Transparent and well-organized financials instill confidence in buyers and demonstrate that your business is a sound investment.

Establish a Transition Plan

Buyers value efficiency. As you begin to think about selling, develop and refine your practice’s systems. Slowly reduce the practice’s dependence on you to make daily decisions. If your current staff members are staying on, appoint new duties to staff and train them to take on more responsibilities. This can make the transition easier for the buyer, employees, and clients. A business that runs smoothly and that is obviously scalable and sustainable is more appealing to potential buyers. Continue Reading…

Canadians’ quest for Financial Independence

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An RBC poll finds Canadians believe they’ll need almost $850,000 to ensure an independent financial future

By Craig Bannon, CFP, MBA, TEP

(Special to Findependence Hub)

For many Canadians, Financial Independence is the ultimate goal: a future where they can live comfortably, support themselves and their families and enjoy their desired lifestyle without the constant stress of striving to make ends meet.

However, with ongoing market fluctuations, a higher cost of living, and overall economic uncertainty, reaching that milestone may feel more challenging than ever before. Many individuals find themselves trying to navigate a complex financial landscape, where saving for retirement and other financial goals requires careful planning and informed decision-making.

Findings from the recent RBC Financial Independence Poll indicate that Canadians believe they need an average of $846,437 to ensure an independent financial future : which they variously described as “having a nest egg large enough to enjoy my retirement,” “not living paycheque to paycheque” and being “debt free.”  In some regions, that number is even higher: respondents in the Prairies, for example, estimate they’ll need an average of $958,535. Among generations, Gen X (aged 45 to 60) anticipates needing over a million dollars to achieve Financial Independence.

 

Investing a Key Strategy for Growth

With such ambitious targets, investing has become a crucial strategy for many Canadians. Nearly half (49%) of poll respondents say they invested in 2024, with Gen X and Millennials participating at similar rates. But concerns linger, with nearly half of all respondents (48%) calling out market volatility and investment performance as a key worry, with this concern jumping to over half (54%) for Millennials.

However, while markets fluctuate, one constant remains: the value of having a strong financial plan based on one’s goals, with a long-term investing strategy to implement, to help investors stay the course through market ups and downs. The encouraging news: 51% of Canadians say they have a financial plan, either formal or informal. Those with a plan report feeling more confident (42%) and reassured (30%) about their financial future.

Staying the Course and Seeking Professional Guidance

For those hesitant to re-start – or begin – investing, waiting for the ‘perfect’ moment to invest may mean missing out on valuable growth opportunities. Time in the market, rather than timing the market, is important. The sooner you can invest and the longer you can be invested, the greater the opportunity to potentially benefit from the gradual growth that markets and economies can experience over the long term. Continue Reading…

Playing Defense with Sector ETFs

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Here’s how an equally weighted portfolio of healthcare, utility, and consumer staples ETFs could provide better downside protection and reduce volatility.

Image courtesy BMO ETFs/Getty Images

By Erin Allen, Director, Online Distribution, BMO ETFs

(Sponsor Blog)

The U.S. stock market, particularly the S&P 500 index, isn’t as uniform as it might seem. While you may think of it as a homogenous entity, it’s far from reality.

The S&P 500 can be broken down into 11 Global Industry Classification System (GICS) sectors: information technology, health care, financials, consumer discretionary, communication services, industrials, consumer staples, energy, utilities, real estate, and materials.

Each sector groups together companies that operate in the same industry and offer similar products and services. Historically, different sectors have also shown varying levels of sensitivity to market and economic conditions.

Some are cyclical, meaning they typically do well during economic expansions but struggle in downturns. On the other hand, some sectors are considered defensive, as their revenues and earnings remain stable regardless of economic cycles.

One well-known investment strategy that takes advantage of these differences is sector rotation, where investors shift their money between sectors based on macroeconomic indicators like GDP growth, interest rates, and inflation.

Source: SPDR Americas Research. ++/– indicates the best/worst two performing sectors. +/- indicates the third best/worst performing sectors. The Energy sector did not make the top/bottom three sectors during any cycles, as it is less sensitive to U.S. economic cycles but more driven by global supply and demand of crude oil. For illustrative purposes only. 1

However, for risk-conscious investors, another approach involves overweighting defensive sectors — particularly health care, utilities, and consumer staples — to provide better downside protection and reduce portfolio volatility.

What makes a sector defensive?

A sector is considered defensive when its companies provide goods or services that consumers continue to purchase regardless of economic conditions.2

For example, when the economy weakens, a consumer might delay buying a new car or upgrading their phone. These are discretionary purchases: non-essential items that can be postponed until financial conditions improve.

In contrast, even during a recession, people still pay their water and gas bills and continue buying household essentials like groceries and personal care products.

The underlying economic principle at play here is elasticity. In economics, elasticity measures how much the quantity demanded of a product changes in response to price or income changes.

Goods with inelastic demand see little fluctuation in consumption, even when prices rise or consumer income declines. This makes sectors with inelastic demand more stable during market downturns.

  • Utilities: Electricity, water, and gas are necessities that households and businesses must pay for, regardless of economic conditions.
  • Consumer Staples: Essential items like food, personal care products, and household goods remain in demand even when discretionary spending drops.
  • Health Care: Medical services, prescription drugs, and insurance are critical expenses that people prioritize, often regardless of cost.

How defensive are these sectors?

One way to quantify how defensive a sector has historically been is to look at its beta, a measure of volatility relative to the broader market3.

The market itself has a beta of 1.0, meaning any stock or sector with a beta below 1.0 tends to be less volatile and moves less than the overall market during upswings and downturns.

When analyzing long-running sector ETFs, the historical five-year betas confirm that health care, consumer staples, and utilities have lower volatility than the broader market.

The Health Care Select Sector SPDR Fund (XLV) has a beta of 0.644, The Consumer Staples Select Sector SPDR Fund (XLP) comes in even lower at 0.575, and The Utilities Select Sector SPDR Fund (XLU) has a beta of 0.746. This suggests that all three sectors historically experience smaller price swings compared to the S&P 500.

Further supporting this, research from State Street Global Advisors examined periods of steep market drawdowns. Between 1999 and 2022, there were 11 instances where the S&P 500 declined by 10% or more in a single quarter7.

They found that an equally weighted portfolio of health care, consumer staples, and utilities delivered significantly smaller losses than both the S&P 500 and the Russell 1000 Value Index.

 Morningstar direct. Data as of 6/30/227

This demonstrates how overweighting defensive sectors has historically provided better downside protection in times of market stress versus broad market indices.

The ETFs for the job

BMO’s lineup of SPDR Select Sector Index ETFs includes three options that align with the defensive sectors discussed earlier. These ETFs provide targeted exposure to U.S. health care, consumer staples, and utilities, ensuring investors can overweight these segments without exposure to the rest of the S&P 500. Continue Reading…

Navigating Volatility with Asset Allocation ETFs

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Image courtesy Harvest ETFs

By Ambrose O’Callaghan, Harvest ETFs

(Sponsor Blog)

The S&P 500 was down 3.53% in the year-to-date period as of mid-afternoon trading on Wednesday, March 19, 2025. Markets in the United States and across the globe have been hit with turbulence while the threat of tariffs has ramped up trade policy tensions. Earlier this month, we’d suggested that investors might consider taking it back to the basics.

In this piece, I want to explore why striking a defensive posture and pursuing diversification in your portfolio could provide peace of mind going forward.

The macroeconomic environment today

There are elevated risks that have led to uncertainty in the markets today. We are now two full months into Donald Trump’s second Presidential term. It already feels much longer than that to many Canadians. Investors may want to prepare for elevated volatility in the near to mid-term as there appears to be no immediate relief in sight when it comes to prickly trade tensions between allies and adversaries alike in the geopolitical sphere. Global trade policy uncertainty, a measurable index that quantifies policy risks, is the highest it has been since Trump’s first term.

Valuation concerns have been added to the risks and uncertainty. This is particularly true in the U.S. with regards to big tech. Investors have started to question the pace of earnings growth, as well as the strength and confidence of the consumer. A March report from the University of Michigan Consumer Sentiment Index showed it falling to 57.9. That is the lowest level since November 2022. It also represents a 10.5% drop from the same time in February 2025. Consumer sentiment had declined by 27.1% – or 21.5 points – in the year-over-year period. That is the largest annual decline since May 2022.

Between tariffs, geopolitics, valuations, and the economy, investors are being presented with an increasingly challenging and noisy backdrop.

Advantages of Asset Allocation funds

The biggest advantage that Asset Allocation funds offer investors is diversification. Diversification, it has been said, is the only “free lunch” in investing. Diversification does not eliminate risk, but it does spread out risk broadly. That has the potential to create more robust portfolios.

Asset Allocation exchange-traded funds (ETFs) help investors better diversify their holdings. These ETFs also provide the discipline to stay invested in the market to help manage the market gyrations that all investors inevitability experience. Staying invested in markets, especially in times of heightened volatility, is historically what sets investors up for long-term investing success. Moreover, asset allocation strategies offer investors the benefit of the package. While many investors may tweak exposures through individual ETF holdings, many can benefit from the “one-ticket approach” offered by asset allocation ETFs.

Asset allocation strategies in 2025

The Harvest Diversified Equity Income ETF (HRIF:TSX) allocates to other Harvest Equity Income ETFs – which overlay an active covered call strategy on a portfolio of sector-focused equities – to generate attractive equity income across a well-diversified sector mix.

Meanwhile, the Harvest Diversified Monthly Income ETF (HDIF:TSX) represents the same portfolio of Harvest Equity Income ETFs. However, HDIF employs modest leverage at approximately 25% to amplify returns and income.

Notable sectors in these ETFs include defensives like health care, utilities, real estate investment trusts (REITs), and it is complemented by growth sectors such as technology and industrials. The use of the covered call writing strategy transforms market volatility into higher levels of cashflow. These ETFs are one-ticket globally diversified equity income exposures, offering attractive overall yields.

A traditional balanced asset allocation portfolio

The traditional “balanced” investment portfolio is composed of 60% equities and 40% bonds. In 2024, Harvest launched the Harvest Balanced Income & Growth ETF (HBIG:TSX) and the Harvest Balanced Income & Growth Enhanced ETF (HBIE:TSX). These ETFs incorporate Fixed Income ETFs into the mix, aiming to replicate that 60/40 asset allocation. These Fixed Income ETFs include intermediate and long duration US Treasuries. Continue Reading…