For young couples starting families, buying their first home and/or other real estate. Covers mortgages, credit cards, interest rates, children’s education savings plans, joint accounts for couples and the like.
Discover essential strategies and insights into succession planning to ensure a smooth transition and ongoing financial success for your small business.
Adobe Stock: Prostock-studio
By Dan Coconate
Special to Financial Independence Hub
As small business owners approach early retirement, ensuring the continued financial success of their business becomes a top priority. The journey of building a business is filled with hard work, passion, and dedication.
To ensure that successors are prepared to carry on the legacy and achieve ongoing financial success, delve into these essential strategies.
Succession Planning
Succession planning is a critical part of preparing for retirement. Identifying potential leaders within the team early on and providing them with opportunities to grow is key. This includes offering challenging projects, exposing them to various aspects of the business, and involving them in key decision-making processes. An effective succession plan ensures a smooth transition and continuity when the time comes for new leadership to take the reins.
Financial Literacy Training
Financial literacy is indispensable for any leader aiming to drive business success. Investing in comprehensive financial training programs that cover budgeting, financial analysis, risk management, and strategic financial planning is crucial. Developing a strong grasp of financial principles equips future leaders to make informed decisions that positively impact the business’s bottom line.
Executive Coaching
Executive coaching plays a significant role in developing leadership skills and ensuring alignment with business goals. There are several benefits to offering personalized executive coaching sessions, whether led by you or a third party. It’s an easy way to help potential leaders enhance their decision-making abilities, improve their emotional intelligence, and refine their leadership style. Continue Reading…
We recently conducted a “Value of Advice” survey of Canadian investors that reinforced to us how important financial advice really is. We found that while advisors enjoy high levels of client satisfaction and loyalty, younger investors are increasingly opting to manage their assets themselves through online discount brokerages and digital services.
Among Canadian investors, 44% feel their advisor provides high value, and 74% believe their financial advisor is worth every dollar they pay. Additionally, 71% say they plan to remain with their current advisor, with that figure rising to 80% among those aged 55 and over.
While these results were not surprising, the level of trust that financial advisors enjoy is changing with a cohort of younger investors. Among those aged 18-34, 40% use online platforms for investment management, while only 38% rely on financial advisors. By contrast, 70% of those over the age of 55 use a financial advisor, with only 17% turning to online platforms.
A Tale of 2 Investors
It’s clear that Canadian investors highly value financial advisors and the guidance they provide. However, there is a tale of two investors split by age in terms of the duration, method and frequency of financial advice they receive.
This presents both a challenge and opportunity for financial advisors to provide more holistic wealth management services and relationship-oriented advice to younger investors.
While younger investors are more inclined to go digital with investing, they also show a significant level of hesitation. Among younger investors, 35% report not fully trusting their financial advisor. When asked whether they can manage their own investments, many admitted to lacking the time (47%), knowledge (39%), or confidence (42%) to do so effectively.
The study highlighted that financial advisors remain the preferred source of advice for most Canadians, regardless of age. In fact, 89% of investors report that their go-to source for financial information and advice is their financial advisor or bank. Moreover, human advisors are perceived to deliver better investment returns, with 44% of respondents believing that human advisors generate higher returns, compared to only 9% who hold the same view of robo-advisors.
Almost half in regular touch with advisors feel optimistic about their financial future
The data revealed that frequent communication with clients is shown to make a significant difference in client satisfaction and optimism. Among those who communicate with their advisor monthly or more, 46% feel optimistic about their financial future, compared to just 18% of those who communicate only once a year. Additionally, 40% of those who have a financial plan created by an advisor express a high level of optimism about their financial future, compared to only 22% of those without a formal plan.
We have been looking at the impact of financial advice for more than 25 years and the utility and benefits are the same.
As the investment landscape evolves, financial advisors will need to focus on building trust, maintaining regular communication, and emphasizing the value they provide in an increasingly digital world. Doing so will enable them to serve both traditional and younger investors more effectively, today and in the future.
Mario Cianfarani is head of distribution for Vanguard Canada. Most recently, Mario was head of national accounts & institutional sales and was previously head of ETF capital markets. Before joining Vanguard in June 2015, he was a portfolio manager at First Asset Investment Management, responsible for domestic and global equity ETFs and sector-based, North American covered call ETFs. Mario has held senior sales and trading positions with a number of Canadian capital markets teams. His experience includes trading equity derivatives and marketing derivative-related risk management solutions to a broad range of clients.
Mario earned a BA in applied mathematics from York University and is a CFA® charterholder.
2023-2024 HireAHelper Moving Migration Report: Artwork by Esther Wu
By Volodymyr Kupriyanov
Special to Financial Independence Hub
When we released our last study of starting a moving labor company as a side hustle, it was a great time to get into the business. Home sales were at an all-time high, and the number of Americans who moved that year inched up for the first time in a decade.
However, after only one year, the housing market has cooled off. And even though sales of newly built homes are still up 6%, home sales as a whole aren’t as high as last year.
The cost of moving has also grown 4% in 2023 (ahead of inflation rates), and this is actually good news! It means movers’ earnings have most likely also increased. So if you’re interested in adding a side hustle to your income, starting a moving labor company is well worth considering.
Findings from 2023 Study on Moving Labor
In 2023, a typical moving company earns between US$90 and $150 per hour on average, or from $244 to $407 per move
Mover earnings in 2023 are highest in Birmingham, AL where average hourly earnings on a labor-only move reached $146
The state with the greatest demand is Mississippi, with 434 moves per moving company registered in the state
What is a Moving Labor Company, and can it work as a Side Hustle?
You can start a side hustle as a full-service mover. These are the huge van line companies, and they tend to offer the whole service package and charge significantly more. Moving labor companies are often responsible for loading, unloading, and, sometimes (though rarely), packing up people’s possessions.
Why is labor-only so profitable?
Here are a few more reasons why moving labor is a good choice for a side hustle:
You don’t require a special mover’s license in most states
No need to invest in your own truck or spend money on gas
With almost half (48%) of all moves taking place on the weekend, you can keep this side hustle alongside your main job or your studies
Fast Facts about Moving Company Earnings in 2023
Here are some estimates on moving marketplace earnings:
How much revenue do movers make per hour?
In 2023, the average amount a moving labor company earned on HireAHelper is $113 per hour (after fees). That rate is based on the service of two movers loading and unloading a customer’s belongings and does not include potential tips.
According to Forbes, local movers usually charge between $50 to $250 per hour in 2023. Continue Reading…
The following is an edited transcript of an interview conducted by financial advisor Darren Coleman of the Two Way Traffic podcast with eldercare expert Yvonne Dobronyi of YCD Consulting. It appeared on September 6th under the title ‘Planning for your parents and what it’s going to cost.’
Coleman says the single biggest financial blind spot for families when planning for the future is the rising cost of eldercare and Yvonne Dobronyi agrees.
An eldercare consultant who counsels individuals and families through her firm, YCD Consulting, Yvonne says the monthly outlay for a retirement home starts at $3,600 for a single studio suite without care, but once in-home resources are included the tab can go up to $20,000 a month.
“Families are in denial and don’t want to ask difficult questions about moving Mom or Dad to assisted-living accommodation,” says Yvonne, who added that more than half the families she sees aren’t prepared for dealing with one, never mind two, elderly parents.
She says many seniors don’t understand they need to sell their home or cottage and sometimes both in order to afford retirement living if they have limited savings. And that seniors may have to work beyond their retirement years to maintain a cash flow to pay their bills even if they’re mortgage-free.
The two experts discussed a range of issues to do with eldercare:
Who holds Power of Attorney for both property and healthcare, and what happens when one sibling has it and the other doesn’t?
The importance of keeping these documents, along with a will, updated passport and medical records, in a designated file that’s readily accessible by a trusted contact.
‘Free’ (government-funded) resources like personal care and light housekeeping services are available after assessment if you qualify but only for 2-4 hours and when staff is available.
Dealing with long wait lists for LTC (long-term care) homes, how to navigate the system, and making decisions during emotional stress.
Below is an edited transcript of the interview, focusing on the cost of eldercare housing services and families being prepared, or not prepared, for what can happen.
Darren Coleman
This is probably the single biggest blind spot most families have when they do their own planning. We can prepare for retirement, but this is where it tends to catch people off guard. I want to explore what life looks like when people suddenly have to figure out, how do I live independently for longer in my home, or what happens if I move into seniors’ housing.
Some families are well prepared, but more than half are not. They react to a situation, so all of a sudden you have a crisis. Mom has dementia and Dad’s been the caregiver and now Dad falls in the home and breaks his hip, so he has to go to hospital. Who’s going to manage Mom? That’s when families get together to figure out what sort of care is required. So some will go to hospital, and others try to manage Mom. My experience is that a lot of times they haven’t designated a power of attorney, completed a will or made funeral arrangements.
Darren Coleman
The reason I think most find they’re not prepared is that the timing of when people will need care is unknown. And people don’t know what these things cost.
Yvonne Dobronyi
Often, family members don’t know where they have an RRSP or GIC, or whether or not their home is sellable the way it is. It’s something that’s avoided because families are in denial and don’t want to ask difficult questions. But it’s our duty as family members to be well prepared and that might involve asking difficult questions.
Darren Coleman
Someone should take the lead in these things. It might be more of a formal meeting or a conversation with some structure to it.
Yvonne Dobronyi
Absolutely. You sit down and share information that will be kept confidential. And if something happens, family members are prepared and know what to do. But often this is not the case.
Darren Coleman
People may be dealing with these things while they’re in this emotional crisis. That’s not the best time to have that chat with your brother or sister about who’s going to look after Mom or Dad.
Yvonne Dobronyi
Very often a parent made a decision to give the power of attorney to one child and not the other two. Or two of them have the power of attorney and can’t agree on what the next steps might be. So one family member says we should move Mom and Dad into a retirement community or long-term care, and the other one says no.
Trusted contacts, Wills & Powers of Attorney
Darren Coleman
There’s a new administrative element for financial advisors in Canada now. It’s about adding a trusted contact to your file. So if people listening have not done this with their advisor, I recommend picking up the phone and saying I’d like to add that to my file. You mentioned the power of attorney and the will. We should point out there’s two kinds of power of attorney. Sometimes people will say, I have a will. Well, it doesn’t matter. The will only works once you’re gone, and the power of attorney is the document that works until you’re gone. So you need both of them.
Yvonne Dobronyi
The power of attorney is responsible for making decisions on behalf of that party in a healthcare capacity. Say the resident or patient has an extreme crisis situation and is now on life support. There needs to be that meeting to determine what is the best route. And that’s a difficult decision to make. I recommend you have more than one person be the power of attorney for care, so you can look at it closely and determine together what would be the best route. Continue Reading…
Commercial Real Estate: Image via Pexels: Brett Sayles
By Devin Partida
Special to Financial Independence Hub
Real estate is a powerful investment tool for anyone looking to build wealth and achieve Findependence [Financial Independence], especially in the U.S. and Canada. It offers the potential for passive income, long-term growth and significant tax advantages, making it an attractive option for many investors.
It is crucial to understand the different types of real estate investments — such as residential, commercial and short-term rentals — and how they align with market trends in North America to make the most of this opportunity. Each type comes with risks and rewards, but real estate can be fundamental to a diversified and profitable investment portfolio when approached strategically.
The Role of Real Estate in Diversified Portfolios
Real estate provides a sense of stability that many investors find appealing, especially when compared to the volatility of the stock market and the impact of inflation in the U.S. and Canadian markets. One-third of Americans view real estate as the best long-term investment, even above stocks, gold, savings accounts or bonds.
Balancing properties with traditional investments like stocks and bonds can enhance financial stability and create a more resilient portfolio. However, understanding regional market trends is essential — particularly in high-demand areas like New York, Los Angeles or Toronto — where property values increase steadily. Being informed about these markets allows investors to make practical decisions that support their long-term goals.
Types of Real Estate Investments
Several investment options are available when building wealth through real estate. Here are different types to help investors choose the right path:
Residential Properties
Residential spaces — including single-family homes, duplexes and condos — are popular investment options for those aiming to generate rental income. Investors can also take advantage of property appreciation through this method, especially in fast-growing areas like the suburbs of Toronto, Vancouver or Austin. While the potential for returns is strong, they must consider risks like fluctuating home prices, tenant turnover and maintenance expenses.
One factor to consider is reviewing any restrictive contracts — particularly in spaces with homeowners’ or condominium associations — because these can limit how the space is used. For example, some groups have strict rules about short-term rentals, which can affect an investor’s ability to maximize returns.
Commercial Properties
Commercial properties generally provide investors with the opportunity for longer-term leases and higher rental income than their residential counterparts. Additionally, they can take advantage of tax breaks and deductions — such as depreciating the property over 39 years — which can reduce taxable income. These factors make buying and improving commercial spaces attractive for investors looking to maximize their returns.
However, these investments come with risks, including economic downturns that may affect tenants and the added complexities of managing larger spaces. For those willing to navigate these challenges, commercial real estate can be rewarding to a diversified investment strategy.
Real Estate Investment Trusts (REITs)
REITs provide an accessible way to invest in large-scale commercial properties without needing direct ownership. They’re great options for those seeking regular dividends and diversified exposure.
While REITs offer attractive returns, investors have very little control over individual properties. A recent example of market impact is the decline in the market cap of Canadian REITs, which fell from nearly $59 billion in 2021 to just $38.2 billion in 2023. Despite these risks, they remain popular for those looking to enter commercial real estate quickly.
Expert Tips for Maximizing Returns
Managing a property investment requires careful planning and strategy to maximize returns. Here are tips to help investors stay ahead and ensure long-term success: Continue Reading…
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