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.

Why are Millionaires flocking to Mexico? (and Non-Millionaire Retirees, too!)

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Panoramic view of Guanajuato City

By Billy and Akaisha Kaderli, RetireEarlyLifestyle.com

Special to the Financial Independence Hub

According to the Mexican Government, around 1.1 million expatriates lived in Mexico as of 2020. Of those, about 700,000 were from the United States, making Mexico the #1 country worldwide for American Expats.

We have listed a dozen reasons below why Mexico is attractive to those with plenty of money, and also to those who don’t have that much.

Freedom

While there are many reasons to move to Mexico, the Number One reason people come here is for the freedom they experience.

With less regulation on all fronts, critics might think that Mexico is a lawless frontier.

Not so.

Mexico is still a place where one can walk the beach with a beer in hand. We can give a homeless person food without filling out countless forms to gain permission or explain if there is mayonnaise on the sandwich or have the food rejected because it’s not in a paper bag. While we personally are not smokers, an individual who chooses to smoke can do so without being read the riot act or be subjected to invectives about their personal worth as a human being.

Many medications can be purchased over the counter without a prescription. One can afford medical care and not be forced into buying an expensive health insurance policy that doesn’t coincide with their personal health approach. Homeopaths, Naturopaths, Chiropractors and those who practice acupuncture or massage can be found easily and their services are affordable. One can walk into a lab and order an x-ray or a blood test on their own without a prescription.

There is respect for the elderly and those over 60 are not invisible. People who are chubby are not judged and can easily find someone to date or marry. People on the street say hello and good morning to complete strangers, and men still tip their hats to women. The young offer their bus seats to those of us who have more years than they do.

People say “excuse me” when they walk in front of you, and it’s perfectly safe to walk through a group of teenage boys without fear.

Common sense is common.

Some are moving due to political climate at home

The world is changing, no doubt. Many have chosen Mexico to get out from under the tense political climate back home.

Mexican culture is lively and accepting and it’s a breath of fresh air to live here. Smaller towns, especially, are like Norman Rockwell paintings.

But bigger cities offer fabulous diversions away from home country political pressure. There are museums, international dining, hiking, cultural events, music, art and volunteer opportunities too.

The caution here, is to not bring the “old” political attitude with you when you move. Grow into the easy and into the pleasantry here in this country.

Zicatela Beach, Puerto Escondido

Affordability

Having money or not, your quality of life should expand over what you are experiencing now in your current home town. The cost of living is such that you will get more for your money and your nest egg will go farther.

Truthfully, depending on where you might choose to live, purchasing a home can be expensive, but rents are cheap. And if you are at retirement age, you might find that putting your money into “living” versus “housing” might be the better choice, anyway.

In either case, gardeners, housekeepers, maintenance people and supplies are all cheaper than you will find in the US or Canada. In Chapala, Mexico, a housekeeper runs about $6USD for 2.5 hours. In Ajijic, Mexico – another popular Gringo town –  it is twice that price, but still not outrageous.

Legalities of permanent status are easier

Getting a permanente or a temporada card is easy to do. While some choose to fill out the paperwork themselves, having a lawyer arrange for this is also quite affordable.

Qualifying for residency is based on your annual income and/or net worth, and the threshold is easy enough to meet. The requirements for getting a temporary card are lower, and after renewing annually for 5 years, the temporada moves into becoming a permanente.

If you have your own state’s driver’s license, you can use that here in Mexico, but if you are not able to renew it, you can obtain a Mexican driver’s license in its place. So long as your present driver’s license is still active, you will only need to take the written exam of 10 questions. You won’t have to perform a driving test in the parking lot.

One can live on Social Security alone

While it’s always great to have more money, one can easily live comfortably on Social Security. The average [monthly] SS check as of 2021 is US$1,658. Rents are available for $300-$600USD per month for a one bedroom or a casita. So, those who are on a limited income can readily find a comfortable place to live and still have money left over for a social life and medical expenses.

For those who actually are millionaires, one can live like royalty in homes with lake views, swimming pools, 3- and 4 bedrooms, plus house and garden help: and they can still keep their millions.

Adaptability

Yes, Mexico is a foreign country. However, our ability as Norte Americanos to adapt to these perspectives can be far smoother than with cultures with which we have less in common.

Celebrating many similar holidays, perceptions and values run concurrent with those we already have. The time zones are also similar to the US and Canada, making contact with family members on Zoom, Facetime, or Skype a breeze.

Weather is better: geographic choices

No matter if you enjoy having four seasons or prefer a tropical climate, Mexico offers it all. Continue Reading…

5 things Ex-Pats need to know before buying Property in Singapore

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Singapore

By Emily Roberts

For the Financial Independence Hub

If you are thinking about buying property in Singapore, you should consider a few things first. Diving headfirst is not always the best solution, as difficulties can arise along the way. Carefully planning your transition to a new place will make moving much sweeter. Owning a property is an immense achievement because not everybody can afford it.

Let’s look at the five things you need to know before buying a property in Singapore.

What types of Property you can buy

You need to understand your eligibility status before looking to buy property in Singapore. There are three types of property: public housing (HDB flats), hybrid or public-private housing, and private property such as condominiums.

The eligibility criteria consist of your age and whether you are buying the house alone or with somebody, among other things. It is also salient to know that a Singapore Permanent Resident (SPR) is considered a foreigner, and restrictions or limitations apply when buying property. Only people over 21 years old can purchase property in this country.

An SPR can buy properties like private condos but you cannot buy a resale HDB flat alone, and you can only buy resale ECs that reached a minimum of a 5-year occupation period (MOP).

Another major restriction, if you are not a Singaporean citizen, is that you cannot purchase new HDBs such as Build-to-Order (BTO) and Sale-of-Balance flats (SBF). Non-Singapore PRs can buy private condos, private ECs, and landed properties.

How to find a Property

There are a few ways to find properties in Singapore, but as an ex-pat, it’s easier to hire an agent. Choosing a local agent you can trust can make your search easier and hassle-free. A local agent can refine your search by guiding you towards the properties you can afford and the ones you are allowed.

As an ex-pat, you have some restrictions when purchasing property and land. Having an experienced agent with you means you will only look at the eligible properties. This way, you are also safer from scammers and overpriced property.

As the agent will be local, this person can help you negotiate better deals with the seller. While it does cost to hire an agent, it will make searching for a property way easier than alone. Even if you choose not to go with an agent, there will still be an agency fee of 1% of the purchasing price. It is to pay the agent selling the house.

Another way to look for properties in Singapore is to search online. There are a few good websites where you can get the feel of the housing market in this country. As a rule of thumb, when you search online, consider houses close to public transport and nearby amenities.

Plan your budget

Buying a property is a massive financial investment and a long-term commitment. To purchase any property in Singapore, you will most likely get a 30-year bank loan like most Singaporeans. It means 360 monthly installment plans throughout your life. Continue Reading…

24 Expert tips on how Networking can grow your Career

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By Ellie Williams

Special to the Financial Independence Hub

Meeting people through networking has a huge impact on you in more ways than you think. By connecting with people in your field or with colleagues in vastly different industries at networking events, you can benefit from a multitude of tools and skills that will help further your career. As a professional, it’s essential that you take advantage of networking opportunities so you can maximize your career growth. Here are some ways that networking can help you advance your career.

Make Long Lasting Professional Relationships

“Networking is an important part of being an entrepreneur, but it’s not always easy. It can be awkward to be at a networking event where everyone is hovering above the hors d’oeuvres or clutching their cocktails. However, networking can help you create long-lasting professional relationships. Networking events are a great way to meet like-minded people with the same interests, passions and goals as you. These connections can become essential for your career growth and can help you climb the professional ladder. Sometimes these relationships can turn into real friendships!” – Rich Rudzinski, Founder and CEO of Tragic Media, Oversight.co, and Drivey.com

More Opportunities

“While networking is great for building verbal skills and branding yourself as a worker, it can also open the door to tons of opportunities that you would’ve never had access to before. The more people you connect with, the more opportunities you’ll be exposed to, such as an inside scoop about a job that hasn’t been posted about yet or someone who wants to mentor you. Knowing people at different professional levels is beneficial when it comes to different job opportunities, so it’s best to make sure you’re taking the time to build relationships with everyone. People will appreciate you going out of your way to talk to them so it’s always smart to push yourself and connect with new people – you never know what may come out of it!”  – Jim Williams, Outreach Manager for Ziebart

Build Interpersonal Skills

“While it can be a little daunting and even quite scary walking into a room when you don’t know anyone, it may prove to be the best thing you have done yet. Networking to grow your career is also a great way of building your interpersonal skills while getting to know someone. People want to work with those who are easily approachable and personable. By showing your true character and letting your personality shine, you can garner more interest from those alike. In doing so, it’ll become easier to build connections and network with others. It’ll also make you feel comfortable talking about yourself, your achievements and your career goals moving forward. This may also lead to potential business partnerships, especially if your goals align with those of other people you end up networking with. “ – Gregg Dean, Co-Founder and CEO of Layla Sleep

Help get your Face Noticed

“The best thing about networking is that you are able to get your face out there, so that you are easily noticed the next time you attend another networking event. Sometimes getting noticed in a room full of people is half the battle. Once you make your presence known, it could work to your favor by attracting more people to you and getting to know them better. In addition to this, you can learn how to build a rapport with those you are networking with as well as learn to listen attentively in order to ask more follow-up questions. So, don’t be afraid to put yourself out there.” – Kate Lipman, Sales & Marketing Consultant of embrace Scar Therapy

Find a Mentor

“Working with a mentor is life-changing because it helps you understand who you are and what you want to become. Networking can help you choose a mentor who will give you the best insight into your current phase of life or career level. Once they understand your skills and abilities, they may put you to work on a specific task to see how well you perform. The relationship between a mentor and a mentee must be built upon trust, honesty, and transparency. When you need someone that you can trust, having a mentor as an objective third party is a great resource. After you’ve experienced life with them, you may want to share your experiences with others too, which helps you become a better leader yourself and provides you with a new perspective on life.” – Megan Jones, Community Outreach Manager for NutraSweet Natural

Hidden Job Opportunities

“You’ll want to build aspiring relationships for potential opportunities, especially for a small business. Whether it’s through family, friends, an acquaintance, or small talk at the store, this is one of the best ways to stand out from others. If you have a genuine interest in getting to know someone’s career that you know of or recently met, ask them for coffee or if they have time for a quick chat to learn more about what they do. Even if there are no current job openings for the position, one might open later down the road and they might remember you over someone else.” – Chris Hunter, Co-Founder & CEO of Koia

Build up your Confidence

“Everyone knows how it feels to attend their first career fair, job interview, or any business event. The training you gain from networking events helps you boost your self-confidence and promote self-esteem. 

First, start with your physical appearance. Dress well, groom yourself, and learn to walk and talk like a confident person. Now, focus on your personality and how you conversate. Confidence grows with your success in life and these networking events are key to help you excel in your self-esteem. It is a trait that comes with experience. Over time, you will get better at everything you do. This happens to everybody, even the people who are confident. These business events and networking will eventually become a breeze and you will feel confident, comfortable and optimistic. Keep putting yourself out there and you will only continue to grow!” – Adrian Pereira, Founder and Ceo of ecopeaco.com

Find Additions to your Team

“You never know who you’ll come across; you may meet a great addition to the team you’re building or managing. Whether you’re building a real estate team or are a gym owner looking for personal trainers, it’s beneficial to network whenever you have the opportunity. Getting to know someone personally, shaking their hand, and listening to their stories/experiences can be more beneficial than traditional interviews. You’ll likely get to speak to them and get open and honest responses, whereas in an office interview, they may say what they think you want to hear.” -Kevin Mako, Founder of Mako Design + Invent

Boost Collaboration

“Developing new professional contacts is always a beneficial way to advance your career.  Aside from increasing your potential job opportunities, networking can also lead to new and innovative ideas.  For example, if you establish a professional relationship with someone from a completely different industry, they can help you think outside of your usual parameters. By expanding your network with a diverse group of individuals, you can learn different ways of viewing problems, creating solutions, and even generating creative ideas.  Thus, networking can help you become a  more well-rounded and valuable professional.” – Lev Berlin, Founder of Recipal

Gain Valuable Knowledge

“Listening is an art, and it’s a pivotal part of networking. Not only can you gain trust and create genuine connections by taking a break and listening to what people are saying, but you can also gain valuable business knowledge. A good listener does not impose their thoughts and opinions when someone else is speaking to them because they’re focused on what they can learn from the interaction. If you want to learn as much as you can about your specific industry – or business in general – you must be a good listener.”  – Hilary Kozak, VP of Marketing for LivSmooth

Amplify Clarity

“All connections that you create will have an impact in one way or another. Connecting and sharing with others allows you to gain a new perspective and gives you the opportunity to gain clarity about your career goals. To amplify your networking and career, it can be great to network with weaker connections, or acquaintances that lie outside of your immediate social group or circle. By stepping out of your comfort zone and expanding your reach, you can increase your social skills and build your knowledge base which will advance your career. Leverage networking to find clarity in your current situation and a roadmap for getting ahead.” – Bill Lyons, CEO of Griffin Funding

Stay up to date with Industry Trends

“A great way to grow your career with networking is by gaining valuable insight on trends! When networking with people in your field in-person or on social media platforms, you will become aware of new trends and the latest industry developments through sharing, during meetings, while having small talk with co-worker, while going through LinkedIn, and more. The digital world will be a huge ally in this aspect as most new industry news will be posted on social media. Therefore, networking puts you and your business at the front of the competition when it comes to new ideas and trends you can utilize in your social media and marketing campaigns. ” – Himanshu Agarwal, Senior VP of Solutions for WorkBoard

Create an Interpersonal Brand 

“Networking becomes a major part of creating a personal brand because as an individual all of your professional interactions play a part in your brand identity. Not all of us work at a small company where we all know each other, but oftentimes you’ll get put on a project where your reputation and personal brand will be discussed. Each time you interact with a client, or another professional outside of your job, you don’t know the potential these interactions have. It is from these weak networking ties that your confidence in yourself and personal branding will matter. Creating a personal brand for how you want to be perceived and what your values will give you a sense of self which will be evident while networking.  – David Ring, Senior Marketing Manager at MCT Trading

Reciprocal Assistance

“Reciprocity is a virtue, and this extends to professional networking as well. The more you help others, the more you prove yourself to be a trustworthy and reliable partner in times of need, which is an asset that everyone desires. As your professional network grows your positive reputation will reach farther in turn. This can become a great boon when you need assistance with or a fresh perspective on a new project that’s coming up. We tend to help others who have helped us, so by expanding your network as far as possible and being courteous and helpful along the way you bring on many more potential hands who can assist you. This is a powerful tool and can quickly turn a daunting task into child’s play due to the expertise from people willing to assist you.” – Adrien Dissous, Global SVP of Marketing at Babo Botanicals

Find New Clients 

“One of the best ways networking can help grow your career is by finding new business clients. Networking events are filled with opportunities that could prove fruitful for business-client relationships. Especially for small or personal businesses, great networking can establish long term relationships. Building strong business relationships relies on trust and credibility which can be established through communication and raport. Once you have made the connection, be sure to continually maintain the relationship. Not only does this help increase business for your company and personal business, but it can show upper management that you are commited to the overall success of the company which can contribute to the success of your career.”  – Jeffery Pitrak, Marketing and Account Manager at Transient Specialists

Continue Reading…

Case Study: Am I going to be okay when I retire?

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Photo by LinkedIn Sales Navigator from Pexels

By Ian Moyer

(Sponsor Content)

Pamela is a 63-year-old widow residing in Ontario, Canada with two adult children who live on their own. Pamela worked for more than 30 years as a Payroll Manager and was able to pay off her mortgage with the life insurance inheritance she received from her husband’s passing and put her savings towards retirement.

She is preparing to retire in two years and has increasing concerns about the amount she has saved for retirement.

Pamela earns $76,000 a year. Now age 63, she has saved:

  • $306,000 in a Registered Retirement Savings Plan (RRSP), contributing $5000 annually until retirement
  • $36,000 in A Tax-Free Savings Account (TFSA), contributing $1000 annually, which doubles as an emergency fund.
  • At age 65 Pamela plans on selling her cottage and adding $400,000 to her retirement funds.

Using Cascades Financial Solutions retirement income planning software, we help Pamela determine if she can retire at the age of 65 and sustain her lifestyle and accommodate traveling.

Pamela will decide to retire at the age of 65 if the after-tax income will meet her needs. With retirement fast approaching, she has three main questions:

  1. Do I have enough to retire? Pamala assumes she will need approximately 50% of her income to travel for five years.
  2. What are other income sources I can rely on? Pamela is concerned about the sustainability of her RRSP, TFSA and sale of the cottage alone.
  3. How do I deal with taxes? Pamela is unsure about the amount of taxes she will need to set aside.

Answering Pamela’s first question: “Do I have enough to retire?” The answer is YES! Based on her needs.

Using Cascades Financial Solutions, we’ve run a retirement income withdrawal plan resulting in three different ways to produce an after-tax annual retirement income of $45,703 for Pamela:

We’ve selected an asset allocation as moderate in the software: Moderate: 60% Fixed Income, 40% Equity,  5% rate of return and 2% inflation. All income and savings are reported in “today’s dollars” by Cascades.

Strategy Descriptions

Registered Funds First: This strategy involves creating retirement income from registered funds first, reducing the risk of leaving highly taxable investment accounts to an estate. The second priority is given to taxable non-registered accounts, leaving Tax Free Savings Accounts (TFSAs) last.

Non-Registered Funds First: This strategy involves creating retirement income from non-registered funds first, deferring the income taxes payable on registered investments. The second priority is given to registered investments, leaving Tax Free Savings Accounts (TFSAs) last.

Tax Free Funds First: This strategy involves creating retirement income from non-registered funds first and postpones the use of registered funds as long as possible. The second priority is given to Tax Free Savings Accounts (TFSAs), leaving registered funds last.

Determining a Winning Strategy: With all other factors being equal, the winning strategy provides a client longevity and the highest estate value, net of taxes and fees, at life expectancy. The differences in the net estate value represents the income tax savings of the winning strategy.  

Answering Pamela’s second question: “What are other income sources I can rely on?” There are two main programs that provide retirement income for most Canadians: the CPP or Quebec Pension Plan (QPP), and OAS.  The maximum CPP / QPP Pension you could receive starting at age 65 is $1,203.75 monthly ($14,445 annually) for 2021.[1]

Continue Reading…

How Inflation-fighting ETFs have fared

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By Dale Roberts, cutthecrapinvesting

Special to the Financial Independence Hub

Last Summer, Rob Carrick at the Globe and Mail asked a few major ETF providers to offer up some inflation protection. In a recent post Rob delivered the inflation-fighting ETF scorecard. There are a couple of obvious winners and a few head-scratching ETFs offered up as inflation-fighters. Here’s the inflation-fighting scorecard, plus the Sunday Reads.

Here’s the post (paywall) on the Globe & Mail.

And let’s get straight to the goods. It is no suprise that oil and gas stocks led the way. That is the only sector that provides consistent inflation coverage. Also, base metals are doing their thing. Gold is solid. Vanguard offered up a balanced portfolio (insert WTF emoji face) as an inflation fighter. And they do that after ignoring their own research on inflation and assets.

Drum roll … and the results Continue Reading…