Victory Lap

Once you achieve Financial Independence, you may choose to leave salaried employment but with decades of vibrant life ahead, it’s too soon to do nothing. The new stage of life between traditional employment and Full Retirement we call Victory Lap, or Victory Lap Retirement (also the title of a new book to be published in August 2016. You can pre-order now at VictoryLapRetirement.com). You may choose to start a business, go back to school or launch an Encore Act or Legacy Career. Perhaps you become a free agent, consultant, freelance writer or to change careers and re-enter the corporate world or government.

Budget 2015: The Findependence Trifecta comes home!

Posted By Jonathan Chevreau | April 21, 2015

Here’s my latest MoneySense blog, covering Tuesday’s federal budget: Seniors Hit Jackpot with Budget 2015.

As you will note from the adjacent illustration of a horse race, we have focused on the big three measures we called earlier today the Findependence Trifecta.

As we noted on the Hub shortly after 4 pm, all three measures came through as telegraphed in the major media in recent days, including MoneySense. That is, almost-doubled TFSA annual contribution amounts ($10,000), reduced RRIF withdrawal rates and reduced tax on small businesses.

Now what’s all this about trifectas? Back in February, we ran a blog both at the Hub and at MoneySense about my reflections on harness racing in Florida, and its (somewhat remote) application to asset allocation. For those not familiar with the term trifecta, here is Wikipedia’s definition.

In a nutshell, horse-racing enthusiasts (“gambling” is such a harsh term!) make a bet on three specific horses placing one-two-three in a particular race. As you can imagine, this is not too likely: it’s a lot easier to bet on a single horse to “show” by coming in either first, second or third. But to correctly identify the first-, second- and third-place winners in exact order involves considerably longer odds. So it’s a big deal if you actually get it right and win a massive bet called the trifecta.

Of course, when it comes to financial independence, the analogy breaks down a little. But as I note in the MoneySense piece linked above, I think we should all be happy with the budget. Enjoy your potential future winnings from the Findependence Trifecta!

For convenience and archival purposes, we’ve also republished a version of the blog below: Continue Reading…

Budget 2015: Savers, retirees hope for more TFSA room, lower RRIF minimum withdrawals

Posted By Jonathan Chevreau | April 21, 2015

17036735929_81f61edc6e_n — Finance Minister Joe Oliver (Department of Finance/Flickr)

By Jonathan Chevreau

Journalists and financial experts will be entering a “Lock-up” this morning in Ottawa, getting roughly a six-hour head start on the rest of us on the contents of the 2015 federal budget.

Even so, a combination of leaks and informed speculation give us a pretty good idea about the contents, which will gush forth within seconds of 4 pm, when the embargo is lifted.

Here at the Financial Independence Hub, we will be focusing on three main measures that if announced will do much to speed or improve our collective “Findependence.” Our hoped-for “trifecta” from Finance Minister Joe Oliver (pictured above) includes the much-delayed promise of a doubling of annual TFSA limits, a lowering of minimum withdrawal limits for RRIFs, and lower tax rates for small business. Continue Reading…

How to Choose a Retirement Location

Posted By Jonathan Chevreau | April 21, 2015

By Billy and Akaisha Kaderli,

Special to the Financial Independence Hub

So you and your spouse have decided to retire. At some point in your retirement planning you must ask yourself where you would like to spend your Golden Years. The following questions and insight should place you on the right path for finding just the location that suits your needs.

First things first

The first question you must ask yourselves is whether you want to stay in the home in which you are currently living or would like to move elsewhere. Retirement is a big step. Sometimes people feel more secure staying in familiar surroundings because it makes the transition to your new lifestyle smoother. Others, for financial reasons, a change of pace, health reasons, or for better weather, want to relocate. In this case, the next decision you must make is whether you want to stay in your home country or move overseas.

If you want to stay in your home country you must decide what sort of climate is most attractive to you. Do you want to experience the four seasons or have a more moderate, year-round climate? Do you like mountains or beaches? What size of city or town do you most enjoy? These questions are important because they automatically exclude places you won’t need to research. Knowing what you prefer in climate, city size and geographical configuration carries a lot of weight in terms of your happiness quotient.

Another thing to consider is that if you choose a town or small city, are there adequate medical facilities nearby? Larger cities tend to have a full range of medical care. Smaller towns generally have clinics and a variety of doctor’s offices, but perhaps not the equipment needed for complex medical situations.

Narrowing your search

Weekly wrap: Futurepreneurs, seminar ripoffs and millennial homeowners

Posted By Jonathan Chevreau | April 11, 2015

We’ve talked on the Hub before about older Boomerpreneurs (Baby Boomer entrepreneurs) but what about younger entrepreneurs? After all, Bill Gates and Steven Jobs made the leap into entrepreneurship while they were barely out of their teens. The Million Dollar Journey blog this week did a good piece on the Futurepreneur Canada programs.

Beware however some entrepreneurs who may be getting rich on your desire to become an entrepreneur via real estate. Read this Boomer & Echo blog: Free Seminar — Learn How to Get Ripped Off.

And while we’re on the subject of real estate, check out the Broke Millennial’s recent blog on The Compromises Millennials Make to be Homeowners.

In Canada there has long been talk about expanding the CPP, or Canada Pension Plan. But most of the chatter in the United States has been about retrenching on social security benefits. Riding to the rescue is celebrity economist Paul Krugman, who argued this week in the New York Times the Case for Expanding Social Security.

But just in case you do fall short in saving for retirement, you can take heart from Jonathan Clements’ article in the Wall Street Journal this week, arguing Why you will need less money than you think for Retirement. Of course, we here at the Financial Independence Hub don’t much believe in the outdated concept of Retirement. We prefer the term Findependence, Continue Reading…

Experiential Vacations as part of your Encore Act

Posted By Jonathan Chevreau | April 5, 2015

By Frank Psoras, VP Credit Cards, TD Bank

Special to the Financial Independence Hub

A growing number of North Americans – both young and old – are using vacations as a time to embark on a new adventure or pursue a personal interest. In fact, my wife and I recently travelled to the Cayman Islands to snorkel with exotic fish and swim with local sting ray.

According to a recent TD travel survey, roughly three quarters (74%) of Canadians have already taken or are interested in taking an experiential vacation. And older baby boomers are also interested in trying new travel experiences, with 65% having taken or expressing interest in this type of trip.

But when it comes to travel, there are various factors people consider when determining the type of trip they will take. Continue Reading…