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.

12 creative ways to earn money Post Retirement

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What is one creative way to earn money post-retirement? 

To help retirees find creative ways to earn money, we asked business consultants and entrepreneurs this question for their best tips. From offering peer-to-peer storage to substitute teaching, there are several creative ways that may help you earn money and stay active post-retirement.

Here are 12 creative ways to earn money post retirement: 

  • Peer-to-Peer Storage
  • Lease a Car On Turo
  • Become a Movie Extra
  • Get a Part-time Audio Transcription Job
  • Freelance Writing
  • Consider Airbnb
  • Rent Out Property
  • Try Driving
  • Affiliate Marketing 
  • Blogging
  • Become a Consultant 
  • Become a Substitute Teacher

Peer-to-Peer Storage

During retirement, many folks seek out sources of passive income like renting, yet often want to avoid the responsibilities and potential problems associated with landlordship. Peer-to-peer storage is a creative compromise. Instead of renting out living space, owners can rent out storage space, such as garages, spare rooms, and closets. These arrangements tend to be easier to end if necessary than tenancies, and involve much less interaction with renters. Retirees are likely to have some extra space in their houses, and putting these rooms to work is a great way to generate extra revenue. — Michael Alexis, TeamBuilding

Lease a Car on Turo

Services like Turo allow customers to borrow someone else’s car for a set period of time. Why not lease out your car to them? Yes, if you’ve got a car, or multiple cars, then you’re ready to become a car-sharing entrepreneur. Some people can earn $10,000 or more by sharing their cars on Turo. The more cars you offer, the more you can earn! — Brian Greenberg, Insurist

Become a Movie Extra

Although it is usually not a very profitable venture, it can become a lifestyle for many. Playing a small part or a background role in TV or cinema productions can be very enjoyable and allow to meet interesting people and even see famous actors. After establishing relationships with casting agencies, it is relatively easy to find some gigs regularly. That’s especially the case for productions recorded during working hours when most professionals are busy with their 9-5s. — Michael Sena, SENACEA

Get a Part-time Audio Transcription Job

Audio transcription is the process of typing out recorded audio, such as podcasts, business meetings, and qualitative research interviews. Transcription agencies regularly hire typists to work 100% remotely as independent contractors. The work is often flexible and can be done on your own schedule. When applying for a transcription job, you’ll usually required to complete an aptitude test that involves transcribing some sample audio. — Chloe Brittain, Opal Transcription Services

Freelance Writing

A great backup plan or extra income is freelance writing. There are so many writing opportunities and contracts for part-time work or a side hustle. Fiverr is an easy place to find extra writing work on the side, you can create your own profile and upload previous work for companies to find and hire you. Plus, you can work from home with freelance writing. — Michael Jankie, Natural Patch

Consider Airbnb

If you have an extra room or an extra property you only make use of seasonally, you may want to consider listing it on Airbnb. Hotels are often too expensive or inconvenient for some travelers, making Airbnb an attractive alternative. You can be as involved in running your Airbnb as you want, or take a largely hands-off approach to making money post-retirement. — Lily Yu, Oak Springs Realty

Rent out Property

One popular option for retirees and senior citizens with extra space or multiple properties is to rent out their spare rooms and suites to people looking for short-term housing options. This can be especially beneficial if you own a vacation property that you only use sparingly but would like to earn an extra income. Many websites allow people to find renters quickly, so take some time to research which ones are best suited to your needs. — Chris Thompson, Backdoor Survival

Uber or Lyft Driving

The best Uber and Lyft drivers I’ve encountered have been retirees. They’re working because they want to, not because they have to. They’re upbeat, conversational, and usually know the geography of the area like the back of their hand.

If you’re retired and don’t like sitting around the house all day, why not carve out a few hours of your afternoon giving people a lift (no pun intended)? If you live in proximity to the airport, most of your customers will be people from out of town that you will enjoy conversing with. It’s an easy way for retirees to earn extra spending money and passengers generally enjoy their company. — Jon Carder, Vessel Health

Affiliate Marketing

Affiliate marketing is one of the most effective strategies to boost retirement income. Once set up, it will continue to generate income pretty much without any intervention. And there lies the appeal, it can be completely passive or operated with just a few hours a week and the help of a virtual assistant, or a younger family member. Continue Reading…

Get started on your investing journey

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RBC/Getty Images

By Michael Walker,

Vice-President & Head, Mutual Funds Distribution & RBC Financial Planning, RBC

 (Sponsor Content)

Whether you’re investing to build up a nest egg for retirement, to buy your first home or for a special vacation, finding the right investing solutions can play a big role in helping you achieve your financial goals.

If you’re just starting on your investing journey, however, I know that taking that first step can feel overwhelming.

To help get you started, I’ve responded below to four of the most common questions I hear about investing:

  • Do I have enough money to get started?

You don’t need to have a lot of money to start investing. It’s important to start early, however, as even small amounts of money can grow into big investments with the power of compounding.

As a simple way to think of this, compounding enables your investment to generate earnings and then those earnings are reinvested. In other words, compounding helps you grow earnings on your earnings.

The basic idea is to start investing with an amount you’re comfortable with and increase that amount over time. Once you’ve decided how much you can invest, consider setting up an auto-deposit that automatically moves that money from your chequing account into your investment account on a regular basis. This could be weekly, bi-weekly, monthly: whatever works for you and your finances. Then, as your available funds increase, you can increase the amount you deposit.

In this way, you’re benefiting from paying yourself first and the money you’re depositing will be in your investment account before you can even miss it.  

  • How do I decide which investing options are right for me?

Finding the right investing solutions starts with understanding your investing style. Here are some questions you can ask yourself, to help determine that style:

  • Why do I want to invest? How does this fit into my overall financial goals?
  • Do I want to make my own investing decisions and do I have the time to manage my own investments?
  • Am I comfortable with virtual investing, knowing there are professionals managing my investments in the background?
  • Do I want advice and support from an advisor, and if so, how much?
  • Do I want to combine doing some investing on my own with working with an advisor?  

Once you understand your investing style it will be much easier to determine the investing options that suit you best. Continue Reading…

New Harvest Monthly Income ETF aims to beat inflation by combining 5 different “Best Ideas”

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Canadian retirees and would-be retirees who feel starved of high monthly income and are pressed by surging inflation may find relief in a unique new “Best Ideas” fund-of-funds Income ETF that began trading on Feb. 16th.

Harvest Portfolios Group Inc. announced on Wednesday the completion of the initial offering of Class A Units of the Harvest Diversified Monthly Income ETF, which is now trading under the ticker symbol HDIF [TSX.]

In a press release, Harvest president and CEO Michael Kovacs said the new ETF targets a high initial annual yield of 8.5% by accessing “five proven Harvest Equity Income ETFs efficiently in one single ETF.”  In a backgrounder  on its website, Harvest noted the inflation-busting 8.5% compares to a 4.5% Canadian inflation rate that ended 2021, and to the TSX’s 2.6% annual yield and S&P500’s 1.5%.

As outlined in a prospectus filed Feb. 4th with all provincial securities regulatory authorities in all Canadian provinces and territories, the innovative new ETF brings together five different Harvest “Best Ideas” in generating income, and is designed to provide Canadian investors access to a core diversified monthly income solution.

The portfolio is comprised of more than 90 large global companies diversified across these 5 equally weighted sectors: Healthcare, Technology, Global Brands, Utilities, and US Banks. The five underlying ETFs are illustrated below: There is no additional management fee apart from the MERs of the underlying Harvest ETFs. Because it’s a new fund and because of the leverage component, there is not yet an estimate of what the final MER might be. But it should be  in the ballpark of some blend of the MERs of the underlying funds: Referring to the tickers below, here are the Management Fees and MERs of the component Harvest ETFs, as of June 30, 2021:

HHL 0.85%/0.99%

HTA 0.85%/0.99%

HBF 0.75%/0.96%

HUBL 0.75%/0.99%

HUTL 0.50%/0.79%

 

The net result is a collection of global stocks that are allocated in the following sectors (a comparable geographical breakout is not yet available):


In addition to high monthly cash distributions the fund provides the opportunity for capital appreciation by investing, on a levered basis, in a portfolio of ETFs that engage in covered call strategies.  Harvest says the maximum aggregate exposure of the ETF to cash borrowing will not generally exceed approximately 33% of the ETF’s net asset value.

For additional information, visit www.harvestportfolios.com

Affording our Lifestyle, post Financial Independence

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Billy and Akaisha enjoying Chacala Beach, Nayarit, Mexico

By Billy and Akaisha Kaderli, RetireEarlyLifestyle.com

Special to the Financial Independence Hub

It’s no secret that we have been living on around US$30,000 per year.

Now into our 31st year of financial independence we see no need to lower our spending. In fact, we are trying to increase it.

Some people do not believe we can have such a fulfilling lifestyle on this small annual amount, so in this article, we thought to explain how we do it.

Let us break this down

Decades ago we discovered the lower cost of living in Mexico. This is what is referred to as Geographic Arbitrage. You make your money in US Dollars – in our case dividends, capital gains and Social Security – and spend in the local currency. After running around the Caribbean Islands and RVing through the Western US, in 1993 we were invited to visit friends living in Chapala, Mexico. Since we track our spending daily, we saw our expenses in Dollar amounts drop rapidly by being there.

After spending 4 years in Chapala,we started traveling to Asia – another low-cost destination – again utilizing the strength of the US dollar to ease the pressure on our wallets. All the while, our stock market assets continued to increase in value.

For a handful of years again we made Dollars in the market and spent Quetzales in Panajachel, Guatemala. Easy living is what we call it and this is an essential style of our retirement approach.

In between all of these travels we spent time in our Adult Community Resort in Arizona. Surprisingly, our cost of living there was one of the best in all of the locations where we have lived. Yes, we were spending Dollars, but the price of living with value was attractive, and we modified our spending in other ways. Often, we walked or biked to grocery stores and various locations. Rarely using our vehicle at that time, the insurance company gave us a discount for having such low annual mileage. Weather – other than the super-hot summers – was pleasing and since there were tennis courts in the resort and friendly neighbors, we had assorted low-cost entertainment options.

These days we’re settled back in Mexico where the exchange rate is as good as it gets.

Travel

As our readers know, we still travel quite a bit even though Covid has kept us mostly in Mexico.

We have upgraded our lodging and choose more comfortable ways to get from place to place. Intra-country flights are very affordable here in Mexico, with a one-way ticket from Guadalajara to Puerto Vallarta costing less than $50USD per person. One time we flew from Guadalajara across the country to Merida for $38USD each. There is no need to stay at home when a week away is so attractively priced.

Because we have permanent residence status here in Mexico, we are entitled to an INAPAM card offering us 50% discounts on buses. Therefore, our transportation expenses for a bus trip to the beach is 2-for-the-cost-of-one. For example, we go to Chacala Beach, Nayarit, Mexico for 538Pesos for the 2 of us. This is about $13USD each on a luxury, air-conditioned bus.

This INAPAM card also gives us free entry into museums and certain public areas that charge a fee.

Rent

Our apartment, showing the upgrades we just finished

Our rent is $300USD monthly, or the Peso equivalent. This amount allows us to live in a gated garden complex, where we have a roomy one-bedroom apartment centrally located. Shopping, restaurants and doctors are easily within walking distance. There is no pressure to own a car in a foreign country with all the expenses like maintenance, licensing, fuel and insurance that are involved.

Recently we remodeled our kitchen with new counter and backsplash tile plus paint, costing 13,800 Pesos, about $690USD. Continue Reading…

Are Financial Advisors really ready for a serious downturn?

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https://advisor.wellington-altus.ca/standupadvisors

By John De Goey, CIM, CFP

Special to the Financial Independence Hub

Clients facing a big, sustained drop in the markets might not listen to advice that worked last time

I recently listened to an excellent podcast hosted by my friend Preet Banerjee, who had my acquaintance Dan Bortolotti as his guest. Much of the conversation was about Dan’s fantastic new book, Reboot Your Portfolio, but the topics bounced around a bit, and I was left with a sense of dread about the overall mood.

Listeners got a glimpse into what it is like to give advice to retail clients, and some of the anecdotes about the life of an advisor I thought were particularly telling. Discussion around the fear felt by investors and advisors in the five or six weeks when COVID-19 first hit was harrowing, but I couldn’t help but think that advisors listening in might be misled.

In the past decade or so, a narrative about the role and value of professional advice has included behavioural coaching. The term can include such value-added activities as topping up RRSPs, getting wills written, naming proper beneficiaries, integrating taxes and other valuable things. But the one thing that always seems to top the list is the notion that advisors add value by encouraging clients to remove the emotion from decision-making. This helps clients take a long-term view focused on personal life goals.

While I agreed with almost everything said in the podcast, I was concerned by what wasn’t said. There was a lot of self-congratulation about advisors navigating their clients through the major market drawdown in early 2020, as if it were a given that this would always be the case.

In truth, that drawdown was the shortest bear market in history. As bear markets go, a walk in the park. Mr. Bean could have provided enough comfort and counsel to keep clients invested in that market. While there is nothing wrong with giving credit where credit is due, I think the podcasters were too congratulatory to mainstream advisors. There was also a reference to the global financial crisis of 2007-2009, and both podcasters agreed that it was far harsher than the 2020 experience. Again, the story was that good advisors can help emotionally driven clients stay on course when things get choppy. They can – but that’s not necessarily the same as they will.

Comparing downturns

That attitude I heard is likely based on what they’ve seen and done in their careers – and those careers embody a time of relative stability. Few advisors today were working in finance during the bear market of 1974 when the OPEC oil embargo crashed markets. In addition, the one-day drop of more than 20 per cent in 1987 was a blip of sorts, but markets were still up that calendar year.

So, the only significant bear markets most people reading this have lived through were: 1) at the turn of the millennium (aka the dot.com bubble), and 2) the global financial crisis. Both were medium-sized drawdowns. But what if we experience something earth-shattering? How will we react? Nobody knows.

If you claim to play a role in modifying behaviour constructively, you will also be prepared to stand up and take your lumps should that behaviour not be what you wanted nor expected.

Here is what I mean by “medium sized.” In the first one, it took about seven years for the S&P 500 to return to its previous level; the index stood at around 1,500 in April 2000 and didn’t return to that level until October 2007. While the previous high was technically reached, it was only a few weeks before the trend reversed and markets began to fall back again. The S&P 500 didn’t get back to the 1,500 range again until February 2013. There was a dip and return, closely followed by a second dip and return, and the net effect was the entire market went sideways for more than 13 years.

Most people refer to the early 2000s as two distinct drawdowns experienced back-to-back, but I would describe both as medium-sized drops. Either way, the net effect, excluding dividends, was no market growth for more than 13 years. Continue Reading…