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.
The very first thing Prime Minister Mark Carney did upon taking office was to scrap the consumer carbon tax. Depending on your degree of cynicism, the move was either desperate or brilliant. There is not much middle ground. He did so while noting that the tax had become divisive.
Few would disagree. The very large majority of economists who study the subject argue that putting a price on carbon is the most efficient and effective way of curbing CO2 emissions. Nobel laureate William Nordhaus has shown this convincingly. Despite the evidence, retail investors simply hated the scheme.
Sometimes there’s a major disconnect between public policy and retail politics. Sensible policies can be rejected because a large percentage of the populace is determined to make decisions based on emotion rather than rationality. People will do what feels good you respective of what the evidence says.
It has been proven many times over that four out of five Canadians were better off paying the tax while cashing the rebate cheques, yet a large percentage of those same Canadians rejected putting a price on carbon at the consumer level. Since about 89% of all emissions come from industrial outputs, the political capital gained by Carney in dropping the consumer portion of the tax far exceeded the opportunity cost of a marginal emissions reduction. Why do so many people viscerally hate policies that conspicuously work against their own self-interest?
Confirmation Bias and Cognitive Dissonance
I believe the answer lies in both confirmation bias and cognitive dissonance. Simply put, people believe what they want to believe:
a) because it makes them feel good; and
b) because they engage in herding behaviour and conform to groupthink
It seems a substantial percentage of the human population actively resists evidence. Sometimes, that resistance appears in the form of political populism where ‘elites’, ‘globalists’ and ‘intelligentsia’ are rejected in favour of whatever populist leaders pass off as ‘common sense’. Confirmation bias is essentially pretending to look for evidence dispassionately, well actually looking for evidence that merely ‘confirms your priors.’ Stated differently, if you were predisposed to disliking a tax on carbon, no evidence to the contrary would have likely changed your opinion.
Similarly, in investing, there are several long-held beliefs that many people harbour that often go unchecked. Some are factually false, while others are merely dubious and open to interpretation and debate. In all cases, however, there is at least some suspension of disbelief to protect a pre-existing viewpoint that simply feels better than the evidence-based alternative. Continue Reading…
My latest MoneySense Retired Money column has just been published and covers something that was a new experience for me: starting and managing a RRIF or Registered Retirement Income Fund.
At the end of the year you turn 71, those with RRSPs are required either to cash them out (not recommended from the standpoint of taxes), to to annuitize orto convert it into a RRIF, or Registered Retirement Income Fund. The latter is the most popular action and recommended by experts like The Successful Investor’s Patrick McKeough.
However, as I’ve discovered since my own RRIF started up this past January, the sweetness of the RRSP tax deduction over the decades is offset by the sourness of having to pay taxable withdrawals on your new RRIF.
In my case, I am a DIY investor who uses one of the big-bank discount brokers to self-manage the taxable distributions and to manage the remaining investments, most of them carryovers from the RRSP. While accumulating funds in an RRSP is a matter of making annual contributions and reinvesting dividends and interest, a RRIF represents a departure from the psychology needed to build an RRSP for the future. Suddenly, regular selling is necessary. The RRIF rules mean that in the first year you’ll have to withdraw something like 5.28% of what your balance was at the start of the year (rising to 5.4% at age 72 and every upwards each passing year).
Payments can quarterly, monthly or any frequency you choose
If you choose monthly payments, as I did, that means every month you have to have 1/12th of the required annual distribution in the form of ready cash to be whooshed out monthly on whatever date you specify. As most retirees will be getting other pensions near the end of the month, I chose mid-month for the RRIF distribution. You also need to choose the percentage of tax you wish to pay to Canada Revenue Agency: I picked 30%, which automatically leaves your account each month. The remaining 70% transfers out into your main chequing account, ideally at the same financial institution where the RRIF is held: It’s easier that way.
Setting regular tax payments
You also need to choose the percentage of tax you wish to pay to Canada Revenue Agency: I picked 30%, which automatically leaves your account each month. The remaining 70% transfers out into your main chequing account, ideally at the same financial institution where the RRIF is held: It’s easier that way. Sure, you could set the tax at 10% or 20% but if you have other sources of taxable income, like taxable dividends and other pensions, I’d rather not have the unpleasant surprise of a larger-than-expected tax bill a year from April. Once you have a year of RRIFing under your belt, you may see fit to adjust the 30% upwards or downwards. Continue Reading…
Hi, it’s Dale Roberts here. You know me from Cut The Crap Investing. My blog posts are often shared on Findependence Hub.
Similar to Jonathan Chevreau I have a keen interest in helping Canadians prepare for retirement and make the most of retirement once they reach that wonderful stage in life.
Too many Canadians enter retirement with some sense of anxiety. They may fear that they will outlast their money. They might not have created the all important life plan.
More and more Canadians have self-directed their investment accounts. Now they need a resource that helps them set the course, and keep the course for a successful retirement.
That’s why we created Retirement Club. Retirement Club for Canadians
What is Retirement Club?
Retirement Club is a community of like-minded Canadian retirees and near retirees.
A successful retirement starts with financial security. Let’s call that fiscal fitness. We cover the financial essentials, in jargon-free plain-speak with clear demonstrations. You’ll learn how to spend down your portfolios in an efficient fashion. You’ll learn how to use free-use retirement calculators that create optimal retirement cash flow plans. That is, how to spend from your investment accounts, working in concert with CPP, OAS, pensions, and other income.
The retirement portfolio will be discussed in detail. We need to align each account’s risk level to the task at hand: dictated by that retirement cash flow plan.
As you may know, at Cut The Crap Investing I’ve offered a unique approach to managing risk: using lower volatility and defensive equities (consumer staples, healthcare and utilities) in concert with traditional risk managers such as cash, bonds, GICs, gold, annuities and more. During the volatility of 2025, these defensive assets have been the top performers.
Of course the financial topics are numerous, from wills and estates, to insurance, tax tips, healthcare costs and more.
Retirement by design
Next comes the life plan. Each of us will decide on our level of travel and entertainment, family time, leisure and living life full of purpose. We’ll provide and share lifestyle inspiration. We’re doing it right when financial security enables a rich and rewarding lifestyle. We need to retire with vitality and purpose. How do we replace the ‘good stuff’ we got out of our working years?
How do we learn and connect?
At a minimum we’ll have …
A monthly one hour Zoom presentation (the next one is April 25th at noon).
A monthly newsletter
The Zoom presentations are lively and interactive. They start with a learning session but move on with Clubbers asking questions and taking part in break out sessions. We end with a 15 minute ‘after party.’ It’s a Club environment.
Letting unnecessary stock market worries take hold of your investment decisions can lead to much bigger problems than just finding stocks to buy
TSInetwork.ca
Our early ancestors had to be on guard against threats in their environment. They were under constant threat. At night, if you woke to every sound from the bushes, you lost some sleep, but you cut your risk of being eaten by a lion or killed by an enemy. Today we face much less risk from animal predators and human marauders. But many people still carry this hair-trigger fear response. We spend more time than we should worrying about things that will never happen. This includes stock market worries.
That’s especially true of investors, who generally think more about the future than other people. It’s true all the more of subscribers to our newsletters and members of my Inner Circle service.
Understand stock market worries and risk so you can put everything in perspective
That’s because many of you are the kind of people who seek out investment information from a variety of written sources, where it’s much more extensive and detailed than what you get from a glance at the headlines, the evening news or cable TV. However, some of that information is biased, overblown or incorrect.
This doesn’t mean you should ignore potential threats. You just need to put them in perspective.
Learn what experienced investors do about common stock market worries
There is never a shortage of ways to ease your stock market worries. “You never go broke taking a profit,” is a favourite of brokers I’ve met over the years. They used them to spur their clients to do more trades, to boost their own commission income.
Our view now is that stocks are still a good place for your money, if you can afford to stay invested for several years. If you expect you will need to take money out of your portfolio, you should think about selling sooner than you need to.
Look beyond immediate stock market movements to help reduce your anxiety and stock market worries
Stock market trends are the general direction in which the stock market is heading. These market trends are dictated by a number of factors: what sector investors favour at the moment, economic and world news, interest rates and other trends from industries such as technology or resources, and so on. These trends could be positive or negative, and they could lead to a huge boom for a stock market. They could also lead to a big downturn. Continue Reading…
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:
Time freedom: Having control over how I spend my days.
Choice and flexibility: Not being tied to a paycheck or forced into decisions based on financial constraints.
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…
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