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.

6 unique ways to Increase your Net Worth and Build Generational Wealth

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By Emily Roberts

For Financial Independence Hub

Whether or not you consider building wealth a complicated process, the fact is that there are time-tested paths to make it happen. Increasing your net worth and building generational wealth is never unintentional; this article described six unique ways to help you do it.

Build Solutions for Unique Problems

All of the world’s wealthiest people, self-made millionaires, created solutions for global problems, and that’s why they became rich. You may argue that most industries already have wealthy giants, but you can find a niche with a growing problem and design a solution. Scale the solution for the global market, and you would have made a step in building generational wealth.

Invest in Profitable Startups

Investment has always been key to building wealth. If you invest early in a business, you position yourself for massive profits when the business grows. Carefully profile startups and invest in them. You should hire a financial advisor or learn more about investment before doing this.

Hire a Debt Management service

You may get into debt as you invest and build a business. Debt is not necessarily wrong when taking loans to build a business, but it could easily cripple your finances. Debt management helps you overcome depth without declaring bankruptcy, improves your cash flow and gives you the more significant financial freedom to invest in building wealth. You can contact Harris and Partners to learn about consumer proposals and how they could help you. A consumer proposal is an alternative to declaring personal bankruptcy and helps create an agreement with creditors.

Hire brilliant Employees

All rich people who built their wealth from scratch have one thing in common: despite their brilliance, they hire the best minds and hands to handle their business and investments. Whether or not you are brilliant, you need employees with specific traits. As Warren Buffett puts it, you need employees with integrity, intelligence, and energy to get the best results. Of course, you need to show strength and foresight, but ensure you have a solid team working for you. Continue Reading…

An update on Findependence Day

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Regular readers of this site [FindependenceHub.com] probably know that it sprang from another site that was created in 2008 to help sell copies of the original Canadian edition of my financial novel, Findependence Day. I am writing this blog somewhat sheepishly as it turns out that that site is no longer available under the original URL. That URL was the title of the book followed by .com but this post is to warn anyone that the new site currently residing on that domain has nothing to do with me or the Hub. Sadly, we no longer own that URL.

I won’t even provide a link here because I can’t vouch for what may occur there: earlier this week we took down the link to it from the Hub, as it took casual browsers to a different site that appears to originate from India. I realize some readers may out of curiosity be tempted to click on the link but if they do would urge them to heed any warnings that may generate; it may or may not be a legitimate site, and therefore could compromise the computer or device of anyone who visits the site and clicks on any portion of it.

Second US edition via Best Buy Books (updated in 2021)

How to buy the original book and subsequent US edition

That said, there are still ways to purchase the original book and subsequent revised U.S. editions. You can find used copies of the original Canadian edition as well as the latest US edition at Abe Books. They also sell copies of some of my other books, including The Wealthy Boomer and the co-authored Victory Lap Retirement.

We do not sell the two US editions directly but they are available directly from either Trafford.com [published in 2013] or Best Books Media [updated and published in 2021.] Hard-cover, paperbacks and e-book versions of the U.S. Trafford version are available at Trafford or via Amazon Canada.  In addition, Chapters Indigo offers hardcover or paperback versions as well as a Kobo ebook version. 

I introduced the newest US edition on July 1st, 2021 here on the Hub. See why by clicking on An interview with myself. The Best Books Media edition is also available in hardcover, paperback and ebook formats at Barnes & Noble.

The hardcover version is also available at The Book Depositary. Here is the publisher blurb from that site:

Findependence Day presents personal finance in a “can’t put down” story format easily digested by young adults entering the workforce and the world of money. Because money problems often cause marital breakups, it focuses on the financial journey of a young couple who experience the usual ups and downs of job loss, buying homes, raising children, investing and pensions, starting businesses, coping with stock market volatility, and more.

The secrets of financial independence are critical wherever you are in the financial life cycle:

– Newlyweds embarking on family formation will discover the importance of financial planning.

– Debt-plagued graduates will be motivated to embrace “guerrilla frugality.”

First U.S. edition from Trafford, 2013

How to get the original Canadian edition directly from me

While used copies of the 2008 edition can be had for as little as $4 or $5 on some of the sites flagged above, shipping charges will put the final tab well above $10.  But you can still buy brand new copies of the original edition directly from me for $16, postage included, and I’d be glad to sign them and write a short message.

We hope to build a landing page from the Hub in due course that will let interested readers buy the original book through PayPal or credit cards, as was the case on the now-disappeared site.

In the meantime, copies of the 2008 Canadian edition can be purchased directly from me by emailing me at jonchevreau8@gmail.com or mailing a cheque for $16 payable to J. Chevreau Enterprises Inc., 22 Thirty Sixth St., Etobicoke, Ont., M8W 3K9. The $16 price includes GST.

Make sure you include your own mailing address so we can send it via Canada Post. That email can also be used for e-transfers. We absorb the GST. Cartons of 36 copies are also still available for $105 plus postage (roughly $30): some financial advisors find this to be a cost-effective giveaway for clients and prospects.

 

Should your Small Business partner with a Social Media Influencer?

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Image Source: Pixabay

By Beau Peters

Special to the Financial Independence Hub

Justifying working with social media influencers in a big business is much easier. They have the resources, reach, and reputation to make the process seamless. But should your Small Business partner with a social media influencer?

Let’s examine three pros and cons of working with a social media influencer as a small business. Then, we’ll guide you in deciding if this type of partnership is worth pursuing.

Pros and Cons of working with a Social Media Influencer

Working with a social media influencer can positively impact your business’s bottom line, but first, you must weigh the pros and cons of this kind of partnership equally. Let’s start with three substantial disadvantages:

1.) Working with an influencer is hard to justify with a small budget

Small businesses have to be diligent about their finances. The last thing you want to do is spend unnecessary money on a marketing strategy you don’t need. When you have a small marketing budget, it can be hard to justify working with an influencer.

You must consider whether you can actually afford to bring on an influencer and that you’re committed to measuring the return on investment to ensure it’s worth it.

2.) It’s risky

Any marketing strategy is risky, but working with an influencer can be particularly risky because you can’t control people. Even if an influencer checks off all the boxes on your “ultimate influencer” list, they may not do what you thought they would do for your brand.

From taking your product and running to not producing the agreed-to content to being completely ghosted, many things can go wrong when working with a social media influencer.

If you aren’t comfortable with the risks, this may not be for you.

3.) It takes a lot of time and effort to find the right influencers

One of the most complex parts of working with influencers is finding the right ones to partner with. Working with the wrong influencers can damage your reputation. If they do something against your brand’s values, your audience won’t be pleased you’re associated with them.

Finding the right influencers to work with takes a lot of time and effort. But you must put in that time and effort to ensure you’re partnering with people with shared values, morals, and ethics.

Even with these cons, the advantages of working with a social media influencer can be significant for a small business. Here are three of them:

1.) Capitalize on the trust influencers have with their audience

Hyper-personalized customer experiences are becoming more important for marketing strategies to be effective. However, the challenge is building enough trust and a deep enough relationship with your target audience to provide that experience.

The great thing about successful influencers is that they know their audience. They built massive trust with them through content they can resonate with. You can capitalize on influencers’ trust with their audience when you choose the right ones to work with. Continue Reading…

Infrastructure as an Alternative Investment

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BMOETFs.ca

By Sa’ad Rana, Senior Associate – ETF Online Distribution, BMO ETFs

(Sponsor Blog)

At a time when market volatility, rising rates and high inflation are a common denominator, investors are looking for alternative solutions that can boost returns, while diversifying their asset mix away from traditional assets and fixed income.

In 1991, an investor with a portfolio of only Canadian bonds could have earned an annualized return of ~11% over 5 years. [1] Investors have increasingly had to look to alternative assets to add diversification, for growth and income generation, and enhanced returns with more challenging market environments

Alternative investments include non-traditional assets, like real estate and infrastructure. Investors can access these types of investment through ETFs that invest in public securities to give exposure to alternative investments offering greater diversification to a portfolio.

Infrastructure defined

When focusing on infrastructure as an alternative investment, it is important to first define what infrastructure actually is. One way to think of it is that infrastructure is the essential underpinning of modern industrial societies: all the core physical structures that allow us to function and enjoy modern life. Examples of such modern physical structures are transportation (roads, bridges, railroads etc.), energy infrastructure (energy transmission lines and pipelines), telecom infrastructure (cell phone towers) etc.: the things that allow all commerce to occur across the globe.

These core assets to modern life are staples for society and you don’t see demand vary much with the economic cycle. This lends to a few key attractive characteristics that makes infrastructure good to look at from an investment perspective.

So why Infrastructure?

One of the aspects that makes Infrastructure a good hedge or offset to the cost of inflation is the nature of the underlying business. These businesses are often supported by long-term contracts with governments, municipalities, or cities. This could lead to relatively steady cash flow with a potential yield component. Another important aspect to consider is that the high barrier to entry in the marketplace which does not encourage competition to emerge easily (mostly monopolistic businesses).

In a lot of the cases, contracts are linked to inflation or the operators have the ability to pass on the inflation to the end consumers. Because of the nature of the services being provided, people aren’t going stop paying the costs associated with services and products. You can rely on income being generated. So essentially, there is baked-in inflation protection.

Continue Reading…

Retired Money: All about the OAS boost at age 75 and implications of deferring OAS and CPP benefits

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My latest MoneySense Retired Money column looks at a rare 10% boost of Old Age Security (OAS benefits) Ottawa recently confirmed for seniors aged 75. As you’ll see there are plenty of implications and points to consider for those who are younger and contemplating deferring OAS to 70, or indeed CPP.

You can find the full column by clicking on the highlighted headline here: Delaying CPP and OAS — Is it worth the Wait?

The National Institute for Aging (NIA) confirmed OAS payments for Canadians aged 75 or older will be hiked 10%: the first permanent increase in almost 50 years. The NIA’s Director of Financial Security Research, Bonnie-Jeanne MacDonald, and Associate Fellow Doug Chandler said in the release the best way for retirees to maximize this boost is to defer OAS benefits for as long as possible, either by working longer or by using their savings to fund the delay.

By now, most retirees are aware they can boost Canada Pension Plan (CPP) benefits by 42% by delaying the onset of benefits from age 65 to 70, or 0.7% for each month of deferral after 65.  What’s less well known is that a similar mechanism works for OAS. Unlike CPP, OAS is never available before age 65, but by delaying OAS benefits for 5 years to age 70, you can boost final payments by 36%, or 0.6% more for each month you delay benefits after 65, according to the NIA. Before the August increase at age 75, the NIA said average Canadians would “leave on the table” $10,000; but after factoring in the new increase, they would now lose out on $13,000 by taking OAS at 65.

MacDonald and Chandler noted there are three other reasons to postpone OAS benefits: Reduced clawbacks of the Guaranteed Income Supplement (GIS) after age 70; Better OAS benefits despite clawbacks for those with more retirement income: and Increasing residency requirements. On point one, it says lower-income seniors wishing to avoid GIS income-tested clawbacks could draw down on RRSP savings to defer and boost OAS benefits, thereby preserving GIS payments after 70. On point 2, those subject to OAS clawbacks may find the age 75 boost in combination with delaying benefits may increase benefits but not the clawback. And on point 3, waiting may mean more years of residency for those who have not lived their entire years in Canada: to qualify for OAS you need to have been a Canadian resident for at least 10 years after age 18, so the five extra years of waiting for benefits could add to the payout.

However, on the first point retired actuary and retirement expert Malcolm Hamilton says it’s true deferring OAS until 70 and drawing more from your RRIF to compensate, means your RRIF income after 70 will be smaller and OAS pension larger. “However, by not drawing OAS until 70, low-income seniors will forfeit the full GIS benefit before 70. This doesn’t look like a good plan to me.” Continue Reading…