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.

Incorporated? Don’t overlook TFSAs & RRSPs if your time horizon is long enough

Posted By Financial Independence Hub | September 9, 2015

By Benjamin Felix, PWL Capital Inc.

Special to the Financial Independence Hub

When people have corporations it’s common for them to retain all earnings in excess of their living expenses inside of their corporations to avoid paying personal tax.

This seems logical. By leaving the money in the corporation there is more money to invest in the corporate investment account, and we know that about $50,000 of dividends can be taken out of a corporation nearly tax-free, making the idea of leaving everything in the corporation until it’s time to draw a conservative retirement income appear very attractive. This strategy may have also been motivated by the tax advantage that used to exist for taking a dividend-only income.

Shift to mix of salaries & dividends

How to Choose a Retirement Location

Posted By Financial Independence Hub | September 5, 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 insights 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 and 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 then 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 will automatically exclude places you won’t need to research. Knowing what you prefer in climate, city size and geographical configuration carries much 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

Retirement – Heaven or Hell?

Posted By Michael Drak | August 22, 2015

by Michael Drak

Special to the Financial Independence Hub

Recently, while reading an article relating to the risks of boredom in retirement, I was reminded of a TV show that I had seen more than 40 years ago. I’m always amazed at how something can trigger a memory and we can recall it with such clarity as if we just viewed it yesterday.

The show was a Twilight Zone segment entitled “A Nice Place to Visit.” In it, the main character is Rocky Valentine, a small time thief who is shot during a robbery and passes out. He wakes up and at some point he realizes that he’s in fact dead, but by some mistake he’s in heaven and has been assigned a guardian angel by the name of Mr Pip.

Life for Rocky is great for a while as all his wishes are catered to: there are beautiful women, an expensive penthouse, fancy clothes and all the money he desires. In fact every time he goes to the casino, no matter what game he plays he wins: he can’t lose. But eventually Rocky gets bored of the predictability of his life, the excitement is gone and with that all of the fun.

Finally Rocky pleads with Mr Pip to send him to the other place where he belongs and that he doesn’t deserve to be in heaven. At this point Mr Pip’s says “Whatever gave you the idea that you were in heaven? This is the other place!”

I love the punch line and the lesson here is that Rocky goes crazy because there are no challenges in his life, there is no effort required and there’s nothing to hope for because it all exists as soon as he wants it.

The boredom of endless leisure

Planet Boomer: The Beginning

Posted By Financial Independence Hub | August 19, 2015

1429562861 — Jim Herrier and Ellen Ma, PlanetBoomer.com

By Jim Herrier

Special to the Financial Independence Hub

When my wife Ellen and I announced to our friends and family that we were moving to Asia the consensus was we would be back in less than two years.

That was ten years ago.

Our first move to Singapore was simply fantastic. A beautiful and sophisticated city on the doorstep of every dream destination you can imagine. Within weeks we were in Bali (the weekend retreat of Singapore ) and we’ve now been 17 times. Beijing was next, then Hanoi, then Phuket and Bangkok in Thailand. We never stopped travelling in Asia and have never run out of amazing places to go.

After two years we left for a business opportunity in Shanghai. The drama and pace of living among 23 million people in what is surely one of the most dramatic cities in the world was exciting but getting out of it was a necessity. We kept travelling, throughout China and farther afield: Sri Lanka, India and all over Australia.

While in China we made friends with two respected Australian journalists: Steve and Colleen Wyatt. As reporters for the Australian Financial Review they went to places we had only heard of, covering stories ranging from worker unrest in Mongolia to riots by Uyghur peasants in Urumqi. Dinner with them was never dull.

After three years, business — this time our own — took us back to Singapore and our travels continued unabated. More India, Laos, Cambodia and the delightful towns and villages of Hoi An, Danang, Ho Chi Minh, Luang Prabang, Chiang Mai, and Phnom Penh. Our Australian friends were posted back to Sydney and then to their hillside home in Byron Bay. On a Skype call Steve revealed they were writing a new book. No surprise, they had written a number of business books; usually exposes of big business and government fiascos. But this one was different.

A new book on Retirement

The Sabattical as a Dress Rehearsal for Retirement

Posted By Financial Independence Hub | August 14, 2015

By Adrian Mastracci, KCM Wealth Management

Special to the Financial Independence Hub

“Life is a great big canvas, and you should throw all the paint on it you can.”
— Danny Kaye, (1913 – 1987), actor, singer, dancer.

“We are often reminded of not pursuing enough personal enjoyment. Well, here is to rectifying that — your coveted sabbatical.” — Adrian Mastracci.

How many dream of arranging a sabbatical — not just a vacation? Leaving the office behind for a long time — say, three months to one year, maybe more.

I can attest from experience, having had a 17-month one, that a sabbatical is magnificent.

I threw some paint on my canvas of life — it’s one of the best personal investments I’ve made.

Sabbaticals are well known among educational institutions. Teaching faculty often arrange one to pursue research and personal interests.

Sabbaticals have plenty of appeal.
Imagine an extra long time to pursue whatever you fancy, without your ties to the office.

My 17 months away from the office were a series of very refreshing experiences.
I had no pressing daily agenda, long lunches, pursuing avenues of interest, travel and no need to rush anywhere.

A sabbatical offers immense personal satisfaction. It can be a time to reflect, explore, slow the pace, relax and change.

Perhaps, all of these at once. Think of it as your dress rehearsal to a healthy retirement.

Adrian’s sabbatical tips